I've seen about a dozen of so e-mails from loan originators just within the last few weeks that are using mortgage/loan/financial "counselor" as their title.
Unless you work for a non-profit agency as it relates to what the feds call "dwelling-secured loans" you cannot call yourself a "counselor" anymore. You had better get yourself some new business cards because it's one of the seven things prohibited with the updated Truth-in-Lending Regulation Z rules that went into effect on Oct. 1, 2009.
In addition to this, there are six more biggies that loan officers and real estate agents must now follow. Just take a look at the real estate section in your local magazines and newspapers. They are misleading to the public - not a place you or your company wants to be!
The following are prohibited practices in advertising for all dwelling-secured loans.
Not Really Fixed: Use the term "fixed" when the payment can change, without including information about time period payment is fixed and requiring using the term ARM or balloon, if applicable.
Comparing Rate or Payment: Compare an advertised rate to a payment or rate amount that doesn't apply to the entire term of loan without additional rate and payment disclosures (see above).
Government Loan: Any advertising says "government" sponsored, supported, etc., when loan program just government-insured is prohibited.
Current Lender: Use the of current lender's name without identifying the advertiser's name and the fact that advertiser is not affiliated with current lender (i.e. real estate agent and lender appear on the same page in a homes magazine) is not allowed.
Debt Elimination: You can't advertise "debt elimination" when program merely replaces one obligation with another.
Counselor Status: Use of the term "counselor" if you are a for profit individual or entity is prohibited as it creates false impressions to the consumer.
Foreign Language: If you provide advertising in one language, you must provide all of the required disclosures in the same language.
With all the new advertising changing, you may want to review every single flyer, marketing piece, e-mail blasts going out the door.
Download Free Mortgage Talking Points on Reg Z Rules at
