Monday, November 19, 2012
Regulators Warn Mortgage Originators About Misleading Ads
The FTC and the new consumer agency that was created by Dodd-Frank, has sent warnings to a number of mortgage originators about potentially misleading ads. The warning was intended to get them to modify their ads. Frankly, the ads are either misleading or they are not misleading. I feel that it would have been better to haul a few of them into court for producing misleading ads that are in violation of a 2011 bill. This looks like another attempt to let the scam artists police themselves. We will have to see what happens with the firms who received the warning letters. My guess is that they will make minor changes in the ads but that the new ads will continue to be misleading. That is the nature of the business that they are in. Predators will be predators.