FTC, 3 Loan Orignators Settle Charges Of TILA & Reg Z Violations; Deceptively Advertising "Teaser" Rates

The Federal Trade Commission announced:

• Three mortgage loan advertisers that allegedly deceptively touted low monthly payments and low rates without fully disclosing loan terms have agreed to settle Federal Trade Commission charges that their ads violated federal law.(1)

• According to the FTC, the ads represented that people could receive mortgage loans at the terms prominently stated in the ads. However, in violation of the FTC Act, the ads allegedly failed to disclose, or failed to disclose adequately, that the advertised low monthly payment amounts and low rates apply only for a limited time, after which they will increase, and that the advertised payment amounts and rates did not include the interest owed each month, with the interest added to the total loan balance.

For more, see Three Home Loan Advertisers Settle FTC Charges; Failed to Disclose Key Loan Terms in Ads.

(1) For links to the relevant court documents in the three cases (ie. consent orders, original FTC complaints, etc.), see:

• American Nationwide Mortgage Co.;
• Michael Gendrolis, doing business as Good Life Funding; and
• Shiva Venture Group, Inc., doing business as Innova Financial Group.