â€œMany mortgage advertisers are making potentially deceptive claims about incredibly low rates and payments, without telling consumers the whole story â€“ for example, that these low rates and payments apply for a short period only and can go up substantially after the loan's introductory period,â€? said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection ... In warning letters, the agency is advising more than 200 advertisers and media outlets that some mortgage ads are potentially deceptive or in violation of the Truth in Lending Act.Here is the FTC's letter to advertisers, and here is the FTC's letter to publishers. The FTC did not specify in its letters or in its press statement any offending advertisers targeted by the regulator for potential action.
FTC Warns on Deceptive Mortgage Ads
The FTC today warned lenders, brokers and even media outlets regarding a proliferation of what it called deceptive advertising that "may violate federal law." From the press release: