Online Mortgage Lead Generator Will Pay $225,000 to Settle FTC Charges

On May 8, the Federal Trade Commission (“FTC”) announced an online mortgage lead generator will pay $225,000 to settle false advertising charges that it deceived customers by marketing adjustable rate loans as fixed interest rate mortgages. The FTC said the company violated the 2011 Mortgage Acts and Practices Advertising Rule (“MAP Rule”) that strengthens customer protections by banning deceptive claims about mortgages, and allows the FTC to seek civil penalties. “Buying a home is one of the most important financial decisions a consumer can make,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “When companies deceive consumers about the true cost of the mortgages they offer, and consumers take on a mortgage they can’t afford, the harm can last a long time. The FTC’s message is clear: Mortgage advertising must be truthful.”