Ads By Mortgage Lenders Come Under Scrutiny

Law360, New York (October 10, 2007, 12:00 AM EDT) -- The Federal Trade Commission’s warning last month to hundreds of mortgage lenders and brokers about their potentially deceptive advertisements is likely to spell more trouble for the mortgage industry down the road.

Finance lawyers say federal and consumer lawsuits are not far off for those companies that continue to churn out ads touting very low monthly interest rates and payment amounts that are misleading borrowers about the terms of the mortgage.

On Sept. 11, the FTC criticized certain ads for not explicitly stating that these “teaser”...
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