An advertisement states 'Government-backed loans available with no money down.' If the lender only offers VA loans to veterans, this advertisement is:
Correct Answer
B) Misleading because it doesn't specify the veteran requirement
Under fair advertising practices, advertisements must not be misleading or deceptive. Advertising 'government-backed loans with no money down' without clearly disclosing the veteran eligibility requirement could mislead consumers who don't qualify for VA loans.
Why This Is the Correct Answer
Under fair advertising practices, advertisements must not be misleading or deceptive. Advertising 'government-backed loans with no money down' without clearly disclosing the veteran eligibility requirement could mislead consumers who don't qualify for VA loans.
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An appraisal report shows the appraiser inspected the property on a date when public records indicate the property was under construction and uninhabitable. The appraisal describes a completed property. This suggests:
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A borrower with excellent payment history on their current 6% mortgage approaches an MLO about refinancing to a 5.5% rate. The MLO discovers the borrower has significant equity but recommends a cash-out refinance with a 7% rate and $8,000 in fees, claiming rates have increased since the initial quote. This scenario most likely represents: