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Post by jeffolie on Sept 12, 2007 15:41:17 GMT -6
FTC warns of deceptive mortgage ads From the Associated Press September 12, 2007 WASHINGTON -- --The Federal Trade Commission has warned more than 200 companies about "potentially deceptive" mortgage advertisements that could give borrowers a false impression of the cost of home loans. The FTC on Tuesday said ads in newspapers and magazines, online and in the mail "may violate federal law" by giving a deceptive picture of mortgage terms. It sent the warning letters to mortgage brokers, lenders and media outlets. "Many mortgage advertisers are making potentially deceptive claims about incredibly low rates and payments, without telling consumers the whole story," Lydia Parnes, director of the FTC's Bureau of Consumer Protection, said in a statement. Some advertisements, the FTC said, highlighted rates as low as 1%, but didn't inform consumers that they often apply to a short "teaser" period and can rise substantially. www.latimes.com/business/la-fi-homeads12sep12,1,7920664.story?coll=la-headlines-business This weak attempt to protect the borrower is much too little and much too late.
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Post by unlawflcombatnt on Sept 13, 2007 5:10:00 GMT -6
It truly is dishonest to tell borrowers with low introductory rates on their ARMs, that they'll l be able to refinance at a lower rate. Few can do that, and the mortgage originators knew that when they falsely informed borrowers of such.
One of the mortgage industry prevaricators actually testified at a public, government hearing. He admitted that buyers were told they'd be able to finance at a better rate when the ARM reset.
This was just a lot of B.S. to get uncreditworthy buyers into homes they could not afford, once the adjustable rate adjusted higher.
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Post by blueneck on Sept 14, 2007 4:15:55 GMT -6
I can't believe with all of the publicity of the mortgage meltdowns, that the junk mail, internet and TV adds for gimmick and subprime mortgages continues.
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