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#2214652 - 05/30/19 11:00 PM FDIC & EHL on Social Media Sites
Compliance Nut Offline
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Joined: Feb 2016
Posts: 118
Looking for guidance on whether the EHL logo or statement should be on a site/post that discusses commercial lending in general on social media sites such as Facebook, Google+, Twitter, etc. This is for an FDIC regulated bank. Also, must the FDIC & EHL logos be "near" or "embedded" into the Bank's profile picture (i.e. their Bank's logo)?

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Lending Compliance
#2214660 - 05/31/19 12:00 PM Re: FDIC & EHL on Social Media Sites Compliance Nut
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,622
Great question. To answer this, I think it is best to break the question down as there are a few different angles to look at.

First, the question is this: do the EHL rules apply to commercial loans?

Since a commercial loan could be either 1) secured by a dwelling or 2) for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling, the EHL logo/statement should be included for such ads.

From 338.3 of the FDIC's rules:
"(a) Any bank which directly or through third parties engages in any form of advertising of any loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling or any loan secured by a dwelling shall prominently indicate in such advertisement, in a manner appropriate to the advertising medium and format utilized, that the bank makes such loans without regard to race, color, religion, national origin, sex, handicap, or familial status."

Our next question is this: Do the EHL rules apply to social media ads?

Since a social media post is "advertising" a loan "for the purpose of purchasing, constructing, improving.... etc," it, therefore, is an advertisement subject to EHL rules. The EHL rules don't address links and web ads as the rules were written before that technology was around. Therefore, it is best to include it. (NOTE: While not law, you could review the FTC DOT Com Guidance from March of 2013 which gives guidance for a "one-click" rule. That said, it is always better to include the EHL - which is my recommendation.)

Finally, you ask this: "must the FDIC & EHL logos be "near" or "embedded" into the Bank's profile picture (i.e. their Bank's logo)?"

The rule for both the Member FDIC statement and EHL logo/statement must be included in the ad. Many banks include these statements into their bank's "logo" image (as it is so often required), but wouldn't technically be needed if every applicable "advertisement" appropriately listed the Member FDIC statement and EHL logo/statement.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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