A Washington solicitation in 2026 quotes a payment with no escrow while letting the borrower think taxes are included. Can this misleading payment presentation constitute the rule’s listed bait-and-switch practice?
Correct Answer
A) Bait and switch: a deceptive disclosure of the monthly payment
Bait and switch means soliciting or promising a loan on favorable terms and later switching to less favorable ones, and the rule lists a deceptive disclosure of the monthly payment amount, involving payments that exclude taxes and insurance while leading the borrower to believe they are included, as an example. Other choices: arithmetic accuracy is what makes the impression possible; later documents do not undo the solicitation; and a program change is a separate example rather than a requirement. Source: WAC 208-660-500(3)(m)(v)
Why This Is the Correct Answer
Bait and switch means soliciting or promising a loan on favorable terms and later switching to less favorable ones, and the rule lists a deceptive disclosure of the monthly payment amount, involving payments that exclude taxes and insurance while leading the borrower to believe they are included, as an example. Other choices: arithmetic accuracy is what makes the impression possible; later documents do not undo the solicitation; and a program change is a separate example rather than a requirement. Source: WAC 208-660-500(3)(m)(v)
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