N.J. Admin. Code § 3:2-1.4 - Violations of the Act

Current through Register Vol. 54, No. 7, April 4, 2022

(a) No financial institution shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of banking, lending or being a financial institution or with respect to any person in the conduct of such business, which is inaccurate, untrue, deceptive or misleading, or which negatively affects the public's confidence in such financial institution or financial institutions in general.
(b) Without limiting (a) above, the following conduct shall be deemed deceptive or misleading:
1. The advertisement of "immediate approval" of a loan application or "immediate closing" of a loan, or words to that effect;
2. The advertisement of a "no-point" mortgage loan when points, as defined herein, are charged or the advertisement of an incorrect specific number of points;
3. The advertisement of unqualified access to credit without clearly and conspicuously disclosing that material limitations on the availability of such credit may exist, including, but not limited to, limitations such as the percentage of down payment required, that a higher interest rate or points may be required, or that restrictions as to the maximum principal amount of the loan offered may apply;
4. The advertisement of a specific rate for a mortgage loan unless:
i. The lender offers lock-in agreements to a reasonable number of qualified applicants at that rate; or
ii. The advertiser specifically states in the advertisement that the expressed rate is the rate at which such loans offered by the lender are currently being closed or committed (in cases where the lender customarily commits to close at a specific rate) and that the rate is subject to change;
5. The advertisement of a mortgage loan by a residential mortgage broker (or residential mortgage lender that acts merely as a mortgage broker with regard to the advertised loan) or by a mortgage loan originator employed by such licensee that does not specifically and conspicuously state that the advertiser will not make any mortgage loan commitments or fund any mortgage loans under the advertised program and does not contain a statement that conspicuously states that the advertising licensee, or his or her employer if the advertiser is a licensed mortgage loan originator, arranges loans with third-party providers;
6. The advertisement of a mortgage loan or mortgage loan services by a residential mortgage lender, correspondent mortgage lender, residential mortgage broker or residential mortgage loan originator without including in the advertisement or broadcast announcement, the name, address and telephone number of the licensee and the words "licensed by the N.J. Department of Banking and Insurance";
7. The advertisement of a deposit account which does not comply with the requirements of the Federal Truth in Savings Law, 12 U.S.C. 4301 et seq., and Federal Reserve Regulation DD, 12 CFR 230; and
8. The failure of any advertisement to comply with the provisions of 3:2-1.3.
(c) No loan or savings product may be advertised by an entity subject to this subchapter unless the entity has the advertised product available to a reasonable number of qualified applicants responding to the advertisement on the date the advertisement appears, or on the next business day if the advertisement appears on a day the advertiser is not open for business.
(d) Nothing in this section shall require a lender to offer any loan product to an unqualified applicant.

Notes

N.J. Admin. Code § 3:2-1.4
Amended by R.1988 d.524, effective 11/7/1988.
See: 20 N.J.R. 1025(a), 20 N.J.R. 2750(b).
Added (b)-(d).
Amended by R.1990 d.236, effective 5/7/1990.
See: 22 N.J.R. 690(b), 22 N.J.R. 1353(c).
Added as deceptive practice, advertisement of a yield on a deposit account for a term of less than one year without reference to the basis of compounding.
Amended by R.1993 d.295, effective 6/21/1993 (operative September 1, 1993).
See: 25 N.J.R. 1035(a), 25 N.J.R. 2687(a).
Amended by R.1993 d.423, effective 9/7/1993.
See: 25 N.J.R. 2625(b), 25 N.J.R. 4063(b).
Amended by R.1994 d.559, effective 11/7/1994.
See: 26 N.J.R. 3234(a), 26 N.J.R. 4347(b).
Amended by R.1995 d.244, effective 8/7/1995.
See: 27 N.J.R. 793(a), 27 N.J.R. 2883(b).
Substituted the Federal Truth in Savings Law and Federal Reserve Regulation DD as the advertising standard for deceptive or misleading conduct.
Amended by R.1995 d.407, effective 8/7/1995.
See: 27 N.J.R. 1715(a), 27 N.J.R. 2883(a).
Amended by R.2000 d.343, effective 8/21/2000.
See: 32 N.J.R. 2177(a), 32 N.J.R. 3059(a).
In (b), rewrote 6.
Amended by R.2006 d.73, effective 2/21/2006.
See: 37 N.J.R. 3101(a), 38 N.J.R. 1181(a).
Rewrote (b)3 and 5; added (b)8.
Amended by R.2011 d.162, effective 6/6/2011.
See: 43 N.J.R. 335(a), 43 N.J.R. 1330(b).
In (b)5 and (b)6, substituted "lender" for "banker" throughout; in (b)5, inserted "residential" throughout and "or by a mortgage loan originator employed by such licensee" and substituted "advertising licensee, or his or her employer if the advertiser is a licensed mortgage loan originator," for "mortgage broker (or mortgage banker acting as set forth above)"; and in (b)6, substituted the first occurrence of "residential" for "licensed lender with", "lender, residential" for "banker or" and "or residential mortgage loan originator" for "authority".

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