If an ad has more than one APR listed, do we need to show the terms of repayment for each one?

Yes...in the small type.....

Yes...in the small type.....

I'm going to tag on to this posting. Our bank wants to place something they call "Team Member Loan Guidelines" on the holding company's intranet. The guidelines give the employee information on the amount of the origination fee and also informs the employees of a rate floor. There is a chart titled "Interest Rate Schedule and General Rate Information" that shows the interest rates for floating rate loans and fixed rate loans as well as the term (years) for repayment. The APR is not stated. My question is would this be considered an "advertisement" for disclosure purposes (Reg Z, EHL, etc.)? This will only be able to be viewed by employees through the holding company's intranet. Thank you.

An advertisement has to be intended for the public. Because someone may print the page and leave it where a customer may see it, you should include a disclaimer that the information is for "internal use only".

Make sure it includes nothing that can come back to bite you when a disgruntled employee hands out copies.

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Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

I agree with Al, but would like to expand on his "intended for the public" advice. Even though the HC department that generates the rate sheet may clearly intend that it not be handed out to customers, if staff members ingnore that instruction and send it out to the public, then it's an ad. In this case, the staff members "intend it for the public" and you're back into the soup.

HELP! I’m new at this and advertising scares me to death.

I need to design a banner advertising construction loans with the interest rate and APR. There are two different terms we are offering but if I mention terms won’t I have to disclose a repayment example? We also charge a point. Do I have to include this on the banner as well and can it say “with 1 point” or does it have to say “with 1 point origination fee”. Or does it even matter since it will be included in the APR.

I know I must include the "dog house" with the equal housing lender disclosure and “Member FDIC”. Are there other disclosures as well?

If all this has to be included the font on the banner will be too small to read off the building. Can anyone help?

Here's the info you are looking for. This info is quoted from our Operations/Deposit manual but comes from 226.24 of Reg Z (Closed-end advertising rules):
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A. “Triggering” Terms. The mere mention of certain loan terms in an advertisement will trigger a legal requirement to disclose certain other terms of the loan. The triggering terms for closed-end credit include:
1. The amount or percentage of down payment;
2. The number of payments;
3. The period of repayment;
4. The amount of any payment; and
5. The amount of finance charge.

B. Required additional disclosures. If any one or more of the above terms of the loan are stated in an advertisement, the following terms must also be disclosed (to the extent they apply):
1. The amount or percentage of the down payment;
2. The terms of repayment;
3. The “annual percentage rate,” or “APR,” using one of these terms; and
4. If the rate may be increased after consummation of the loan, a statement of that fact.

If an advertisement states a rate of finance charge, it shall state the rate as an “annual percentage rate,” or “APR,” using one of these terms. If the annual percentage rate may be increased after consummation, the advertisement shall state that fact. The advertisement shall not state any other rate, except that a simple annual rate or periodic rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate.
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Your banner does not need to state the "interest rate" but must state the "APR". If you mention the length to maturity, you do trigger (as explained in A2 & A3 above). The point should be in the APR, but you don't have to mention it. If you mention the point, you trigger disclosures (see A5 above).

Yes, you must include the Equal Housing Lender logo (dog house and words) but you don't have to say "Member FDIC" since loan ads are exempt.