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#84353 - 06/02/03 05:30 PM
Use of the term "Federal"
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Anonymous
Unregistered
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Can a mortgage broker use the term "Federal" as part of their name? We have one in town who decided to use part of our name including "federal". This could confuse our customers. They are also advertising rates without stating the APR.
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#84355 - 06/02/03 05:46 PM
Re: Use of the term "Federal"
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10K Club
Joined: Jul 2001
Posts: 83,388
Galveston, TX
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I'd say it's borderline. You may want to put a call into the US Attorney General's Office for clarification:
18 USC 709:
Sec. 709. - False advertising or misuse of names to indicate Federal agency
Whoever, except as permitted by the laws of the United States, uses the words ''national'', ''Federal'', ''United States'', ''reserve'', or ''Deposit Insurance'' as part of the business or firm name of a person, corporation, partnership, business trust, association or other business entity engaged in the banking, loan, building and loan, brokerage, factorage, insurance, indemnity, savings or trust business;
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#84356 - 06/02/03 06:03 PM
Re: Use of the term "Federal"
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Diamond Poster
Joined: Jun 2002
Posts: 1,210
California
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You could just send the offender a copy of the statute and see if they get the message.
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My opinions are not legal advice and are worth what you paid for them.
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#84359 - 06/02/03 07:11 PM
Re: Use of the term "Federal"
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10K Club
Joined: Jul 2001
Posts: 83,388
Galveston, TX
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Since this is a Federal law, the US Attorney General should enforce it.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#84361 - 06/02/03 08:56 PM
Re: Use of the term "Federal"
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Anonymous
Unregistered
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A federal statute was quoted; however, mortgage brokers are typically governed by state law. State laws often have requirements on what brokers can/can not use as a "name". I think an inquiry with state officials would be appropriate.
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#84362 - 06/02/03 09:12 PM
Re: Use of the term "Federal"
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10K Club
Joined: Jul 2001
Posts: 83,388
Galveston, TX
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This Federal Statute would override any local or state law.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#84365 - 06/03/03 01:51 PM
Re: Use of the term "Federal"
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Power Poster
Joined: Aug 2002
Posts: 3,094
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Sec 709 states "Whomever, except as permitted by the laws of the United States, " uses the words.....
That's the problem...what law of the U.S. spells out who or what is permitted?
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Opinions are my own and not of my employer.
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#84366 - 06/03/03 01:55 PM
Re: Use of the term "Federal"
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Power Poster
Joined: Jun 2001
Posts: 6,153
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Quote:
"Whomever, except as permitted by the laws of the United States, "
Because it does not say "local" laws, I think it is safe to say it does not include state laws. It does leave it wide open for other federal laws to permit it.
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Better a patient man than a warrior, a man who controls his temper than one who takes a city
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#84367 - 06/03/03 02:00 PM
Re: Use of the term "Federal"
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10K Club
Joined: Jul 2001
Posts: 83,388
Galveston, TX
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You need to read the rest of section 709 to get the flavor, but I don't think you are going to find any Federal law that specifically allows the use of the word "Federal" by a mortgage broker.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#84369 - 06/03/03 08:22 PM
Re: Use of the term "Federal"
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Platinum Poster
Joined: Jan 2003
Posts: 921
Down South, USA
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Quote:
And there, in a nutshell, is why we have an uneven playing field with the "rest" of the mortgage industry. ....
Not just mortgages either. The US banking system is so bogged down in regulations to "protect" the consumer, including the corporate consumer, from heaven-only-knows-what, that consumers are no longer able to get the services they want from banks.
Most consumers have no idea that they are being "protected" from, for example, "predatory lending" by banks, all they know is that they can't get a loan from a bank, but can from any one of a number of finance companies that are little more than legalized loan sharks!
*** Rant over! ***
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This is my opinion; it is not legal advice, nor the view of my employer, and it may change tomorrow.
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#84371 - 06/04/03 02:20 PM
Re: Use of the term "Federal"
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Diamond Poster
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
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Oh, Bonnie, I only wish you could tell us how you really feel.
Would the fact that the Marketing Department at my previous bank claimed my middle name was "Member FDIC" be a violation of this as well. Should I report myself?
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Al Miller, CRCM Opinions expressed are my own and not necessarily shared by my employer.
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#84373 - 06/04/03 08:48 PM
Re: Use of the term "Federal"
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Power Poster
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
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Well you can claim it Bonnie, but to put the name on your ID you have to have a judge approve your new name. I considered Juan when I was changing my name...because Dawn Juan sounded so nifty A gentleman in Florida was denied the use of his name (or what he claimed it should be) "God" and I've heard of Santa Clause being rejected here in Alaska. (you think we'd have a couple Santas, heck Jack Frost ran for mayor just recently)
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Dawn Coursey VP/CRA Queen
CRA Rating is in...Oh who cares...I'm home with the baby.
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#84375 - 06/05/03 11:53 AM
Re: Use of the term "Federal"
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Power Poster
Joined: Oct 2000
Posts: 5,991
Soaring over Georgia
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What crime do you suspect being committed at or through the bank?
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Jim Bedsole, CRCM, CBA, CFSA, CAFP My posts - my opinions
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