The feds are cracking down on agents and builders for deceptive ads

Definately need to cleanup and get those that give the lending and agents a bad name out of here.

Right you are.  It doesn't say much about the character of those people.

Thanks for the heads up, but in my opinion I think its a good action by the Fed. While I am not a huge fan of lots of gov't protection, I do belive that consumers need to be more informed when it comes to purchasing a home and there should be more clarity from those advertising rates. Consumer protection is important!

Jannah, I hope they start cracking down on a lot more things, it's about time! I'm with you Michael & Jim (53, 60) how do agents get away with this? Ah, but they do. The thing about it is, I know some of these agents and they couldn't buy the house, even if was discounted by 50%! 

lenders have been regulated about this, now its being expanded. Join the rest of us. 

Very good article. I recomend every body to share  this article to their curent and fuure clients, even to the public

About time for some enforcement.  I think there may be some hope that they eventually will get to those deceptive ads placed by many agents advertising 'buyer agent services' when, in fact, they might not be in a position to provide the service at all. If the agent's company lists homes - the ads are deceptive if the ad does not  include a disclaimer.

This is AT LEAST as serious a problem as the deceptive financial claims.

It's too bad that these type of practices are still going on. 

The FTC has been cracking down on all forms of deceptive advertising so this is not a surprise for me...especially in real estate where there is huge opportunity to mislead and profit from it

Who is going to look into the government for misleading us all of these years?

I hope they do make an impact on the deceptive ads.  I am so tired of people showing up to my office with these "offers".  Thanks for making all aware!

Part of the problem here is that only lenders are held to the FTC's guidelines in marketing. Lead generation services and websites (those ads in the right sidebar of your Gmail or Facebook) aren't covered by the FTC's guidelines because they don't actually do loans. I see these ads and shake my head because I know the interest rates they are advertising, in an effort to get consumer's information to sell to loan officers, are not available. I constantly have borrower's ask me: "Is that the best you can do? I saw on Yahoo! that I can get 2.25% on a 30-year fixed loan."

That said, I also am appalled at the tactics of some of my peers in this industry. I get letters at my house for refinancing that are made to look like they come from a government agency. Some of the ones I see targeting veterans are especially sickening.

Thanks for sharing... We have to be careful when dealing with consumers.

Janna:

I have heard the same thing about lead generation companies and of course they are soliciting us.  Not good.

So many scams large and small. From Barney Madoff to our own government. 

Good thing I do not do that kind of stuff.  Probably a good thing to crack down on.  Now I wish they would crack down on stale or phantom listings on National Real Estate Search sites.

There is no place for deceptive advertising in our business. Or any business for that matter. Financial terms should always be crystal clear.

I think there really is no sheriff in town when I look at some of the advertisements on the internet or lately even in newspapers!