A lender advertises 'No closing costs!' but charges an origination fee that is disclosed only in the fine print. This would most likely be considered:
Correct Answer
B) A deceptive practice due to the misleading headline claim
This is a deceptive practice under UDAAP because the prominent 'No closing costs' claim is likely to mislead consumers, even though there is disclosure in fine print. The overall impression created is materially misleading about the actual costs involved.
Why This Is the Correct Answer
This is a deceptive practice under UDAAP because the prominent 'No closing costs' claim is likely to mislead consumers, even though there is disclosure in fine print. The overall impression created is materially misleading about the actual costs involved.
More Ethics & Fraud Questions
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An MLO's email signature includes 'Licensed MLO' and their NMLS ID, but omits their employing company's NMLS ID. This email signature: