FTC and CFPB join forces to fight deceptive mortgage ads

In press releases yesterday, here and here, the Federal Trade Commission and the Consumer Financial Protection Bureau announced that they are teaming up to fight deceptive mortgage advertising. The FTC sent warning letters to 20 real estate agents, home builders, and
lead generators, urging them to review their advertisements for
compliance with the Mortgage Acts and Practices Advertising Rule and
the FTC Act. The CFPB sent warning letters to 12 or so mortgage brokers and lenders. The agencies are also investigating other companies.

The FTC and CFPB now share jurisdiction over various aspects of consumer financial services, including deceptive practices in mortgage sales, payday lending, and debt collection. Last January, the FTC and CFPB entered into a Memorandum of Understanding to coordinate enforcement of consumer financial laws, avoid duplication of effort, and promote information sharing.

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