N.Y. Comp. Codes R. & Regs. Tit. 3 § 38.2 - Solicitation and advertising
(a) No
mortgage broker shall advertise its business in New York in print or electronic
media without including the legend "Registered Mortgage Broker-NYS Banking
Department" or words to like effect therein. No mortgage banker shall advertise
its business in New York without including the legend "Licensed Mortgage
Banker-NYS Banking Department" or words to like effect therein. Business cards,
letterhead and general electronic media communications, to the extent that they
are not used for general advertising purposes, need not include the
legend.
(b) Any advertisement by a
mortgage broker, mortgage banker or exempt organization in print or electronic
media must indicate the name of the entity and a street address of any one of
its offices in New York State or, if the entity is not located in New York
State, the street address of any one office outside New York. This requirement
will not apply to advertisements made by a mortgage broker, mortgage banker or
exempt organization having more than 10 offices in New York State.
(c) No mortgage loan products may be
advertised by a mortgage broker , mortgage banker or exempt organization 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 the entity's next business day. Nothing in this
section shall require a lender to make a loan to an unqualified applicant. This
requirement shall not be deemed to be violated if the aggregate principal
amount of the advertised product available to all applicants is limited to the
amount specified in an agreement between the entity and a third person (e.g.,
State mortgage agency) to sell such product to the third person, and the entity
discloses in the advertisement for such product that the availability of such
product is limited.
(d) No
advertisement by a mortgage broker shall contain language which indicates or
suggests that the mortgage broker will fund a mortgage loan. Any advertisement
by a mortgage broker must contain a statement to the effect that the mortgage
broker arranges mortgage loans with third-party providers.
(e) No mortgage broker , mortgage banker or
exempt organization shall fraudulently or deceitfully advertise a mortgage
loan, or misrepresent the terms, conditions or charges incident to a mortgage
loan in any advertisement therefor. Without limiting the foregoing, the
following conduct shall be deemed fraudulent, deceitful or misleading:
(1) the advertisement of "immediate approval"
of a loan application or "immediate closing" of a loan;
(2) the advertisement of a "no-point"
mortgage loan when points, as defined herein, are accepted as a condition for
commitment or closing, or the advertisement of an intentionally incorrect
specific number of points;
(3) the
advertisement that an applicant will have unqualified access to credit without
disclosing what material limitations on the availability of credit may exist,
such as the percentage down payment required, that a higher 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 time period within which a commitment will be
issued unless a commitment will be issued to a qualified applicant within the
time period specified, if at all; and
(5) the advertisement of a mortgage loan
where a prevailing rate is indicated in the advertisement , unless the
advertisement specifically states that the expressed rate may change or not be
available at commitment or closing.
(f) Every mortgage broker , mortgage banker
and exempt organization shall maintain a record of samples of its
advertisements (including commercial scripts of all radio broadcasts,
television broadcasts and electronic media ) for examination by the
superintendent for a period of two years from the date of
publication.
(g) Any advertisement
by a mortgage broker, mortgage banker or exempt organization for a mortgage
loan product containing a prepayment penalty which advertisement sets forth the
interest rate and/or points of such product shall include a statement
indicating that the product has a pre-payment penalty.
Notes
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