The Federal Trade Commission (FTC) recently announced a settlement of a lead generation enforcement
action. The settlement reflects that the FTC remains focused on
lead generation and, more specifically, mortgage advertising, even
though it shares enforcement authority for nonbank mortgage
advertising with the Consumer Financial Protection Bureau (CFPB).
In addition, the settlement is an important reminder that lead
generators and buyers need to review advertising and marketing for
compliance with applicable laws and regulations.
The FTC's complaint alleged that the online lead generator
operated websites that advertised low interest-rate loans as
fixed-rate mortgages, when, in fact, they were adjustable-rate
mortgages that could become more expensive for borrowers over time.
The advertising also allegedly failed to include required
disclosures, such as the annual percentage rate, amount of down
payment, and repayment terms that figure into the advertised
payment
