Susan Walsh, AP
The U.S. government warned mortgage lenders to clean up misleading advertisements Monday, according to NBC News.
The crackdown came after two agencies, the Federal Trade Commission and the Consumer Financial Protection Bureau, reviewed about 800 advertisements for mortgage-related loans.
The review discovered four problems with the advertisements, which were found on the Internet, in newspapers and in mailers. One was that they misrepresented their connection with the government by having official-looking seals. These seals cause consumers to believe they were affiliated with the government.
Some had false information about interest rates, showing lower rates than were actually offered.
Others presented images that misrepresented the amount of cash or credit available.
Finally, companies made statements regarding reverse mortgages that made it seem like consumers wouldn't have to pay on the product, when in actuality they had monthly or other periodic tax or insurance payments.
"Misrepresentations in advertising for mortgage products pose a significant risk of harm to consumers because they can confuse and mislead consumers when they are making one of the biggest transactions of their lives,” said Kent Marcus, assistant director for enforcement at the CFPB to NBC News.
- Utah's first family of rodeo: Riding buckin'...
- Utahns urged to shift spending during Small...
- How to avoid scams on Cyber Monday and Giving...
- Recruiting crisis? UHP, other agencies...
- Feds: Utah companies accused of conducting...
- Students hope to invent windows of the future
- Black Friday mayhem: A tale of humor and...
- Small Business Saturday carves out place...
- Feds: Utah companies accused of... 26
- The new Thanksgiving tradition: A quick... 11
- Utah liquor commission going slow on... 4
- Utahns urged to shift spending during... 4
- How to avoid scams on Cyber Monday and... 3
- 5 Utah E. coli cases linked to Costco... 2
- In time for the holidays, S.L. Comic... 2
- Recruiting crisis? UHP, other agencies... 2