Thread Options
#1418217 - 07/21/10 08:20 PM Mortgage letters to current customers
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
Are letters to current mortgage customers - telling them of a new product or comparing current products with their product trigger advertising rules?

Return to Top
Lending Compliance
#1418406 - 07/22/10 01:10 PM Re: Mortgage letters to current customers Tryin-2-Comply
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
"telling them of a new product or comparing current products "

Sounds like the definition of advertising to me.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1418537 - 07/22/10 03:03 PM Re: Mortgage letters to current customers rlcarey
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
ok, - that's what i was thinking but the mortgage dept is arguing that it's not because they put a statement at the bottom of the letter that states: this letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 226.2 Regulation Z.

I don't agree that the statement exempts them from the advertising rules.

Return to Top
#1418551 - 07/22/10 03:10 PM Re: Mortgage letters to current customers Tryin-2-Comply
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
Walks like a duck, quakes like a duck. Just because you hang a sign around it's neck that says "I'm a cow" does not make it so.


If this is not a advertisement, ask them why are they sending it. It is not a required regulatory disclosure. Have the information from the Reg Z commentary below when you ask them.



Section 226.2óDefinitions and Rules of Construction

2(a)(2) Advertisement .

1. Coverage . Only commercial messages that promote consumer credit transactions requiring disclosures are advertisements. Messages inviting, offering, or otherwise announcing generally to prospective customers the availability of credit transactions, whether in visual, oral, or print media, are covered by Regulation Z (12 CFR part 226).

i. Examples include:

D. Direct mail literature or other printed material on any exterior or interior sign.

H. Letters sent to customers or potential customers as part of an organized solicitation of business.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1418570 - 07/22/10 03:21 PM Re: Mortgage letters to current customers rlcarey
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
Great, thank you so much for taking the time to provide this....a great help...and much appreciated.

Return to Top
#1419042 - 07/22/10 10:39 PM Re: Mortgage letters to current customers Tryin-2-Comply
West Coast Comp Offline
Gold Star
West Coast Comp
Joined: Jun 2010
Posts: 350
Lost in the rain.
I love the "we said its so" arguement. I get it all the time.
That's not a referall fee because we say its not...That's a QWR because I say it is...As Carey says it doesn't change what it really is. I've decided to laugh everytime I hear this so I won't have to cry.
_________________________
Where I go there I am. smile

Return to Top

Moderator:  Andy_Z