An MLO creates a video advertisement featuring a rate quote valid for 30 days. The video is posted on social media and remains active for 6 months. After the rate expires, this constitutes:
Correct Answer
A) A continuing violation of advertising accuracy requirements
Regulation Z requires that advertised rates and terms remain accurate for as long as the advertisement is accessible to consumers. Leaving expired rate information accessible constitutes ongoing false advertising, regardless of when it was originally posted.
Why This Is the Correct Answer
Regulation Z requires that advertised rates and terms remain accurate for as long as the advertisement is accessible to consumers. Leaving expired rate information accessible constitutes ongoing false advertising, regardless of when it was originally posted.
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An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?