Does your Compliance and Marketing staff review every mortgage flyer for advertising compliance? The type of flyer I'm referencing is the type used at open houses that have rate and term info with pictures/contact information of both the realtor and the mortgage loan officer at the bottom. The company we use generates these flyers for each property, and the only things that change on them each time are the addresses and rates/terms. All items required due to triggering terms are included. Since the makeup of the flyer doesn't change, there are those that think a review each time a new one is generated is unnecessary. Thoughts?

That's a bank call.

I hope the cost is proportionally split between the bank and the realtor.

It is. That was one of the first questions I asked. I'm just hesitant to allow the review process to be skipped because there is still a potential (however small) for human error.

I may be on the more conservative end here but I like the idea of reviewing all advertisements. I don't know how many times I have been told that "everything is the same as last time" only to find out that important information is moved/added/removed. Obviously you have to work with the resources that you have and determine your comfort level on whether things will change.

Maybe a middle ground would be to randomly review a sample of those "take one" flyers.

I think that's what we're going to have to do. I was told that these are not actually for potential buyer open houses. They're for realtor open houses and that the information should not be given to actual customers. I say the potential is there, but they disagree, so we're at an impasse.

Could someone please point me to the actual definition of an advertisement? Marketing is running every little thing past Compliance and I'm not sure it's necessary for all materials.

I made a template for our mortgage department to utilize for this purpose. They change out the MLS# and the pictures of the houses. In addition, the logo the department has includes Member FDIC and EHL in the graphic. We do not disclose rates/terms/etc in the flyers.

I no longer review every flyer, but i do get samples now and again just to make sure they are following the template.

For consumer purpose loan ads, the definition of an advertisement can be found in section 1026.2 of Reg. Z and its commentary. https://www.bankersonline.com/regulations/12-1026-002