FTC Issues Warnings about Untruthful and Deceptive Mortgage Ads
On September 11, 2007, the Federal Trade Commission (FTC) warned mortgage brokers, lenders, and media outlets that some of the advertising claims being made about mortgage products may violate federal law. The FTC is concerned about false advertising claims on the Internet; in newspapers and magazines; and in direct mailings, e-mail, and faxes. For example, even after all the recent publicity about abusive mortgages, some ads continue to promote extremely low monthly payments without disclosing the terms of the loan, including sharp payment increases and balloon payments. The FTC sent warning letters to more than 200 advertisers and media outlets and issued a press release to publicize its actions.
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