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Brokerages, REALTORS® face implications of new FTC rule

Monday, August 22, 2011  
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The Federal Trade Commission has issued a new Mortgage Acts and Practices – Advertising (MAP) rule, which went into effect on August 19, 2011. The rule imposes requirements on those that provide information about mortgage credit products to consumers by prohibiting misrepresentations during these communications and also imposing recordkeeping requirements. The rule impacts real estate professionals that provide this information to consumers, such as giving a consumer a lender’s rate sheet.

The rule applies when a real estate professional provides information about a specific mortgage product to a consumer. An example would be providing a consumer with rate sheets containing the current interest rate from a lender or providing a consumer with applications or other information for a specific mortgage product. All statements about the terms of a mortgage are covered by the rule, and will need to be retained for two years. In addition, the statements should include disclaimer language (below) in order to protect against later misrepresentation claims.

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