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FTC proposal would further limit deceptive mortgage practices
WASHINGTON (9/27/10)--The Federal Trade Commission (FTC) last week moved to further prevent deceptive mortgage practices by proposing rules that would ban “all material misrepresentations in advertising about consumer mortgages.” The rule would specifically target mortgage lenders, brokers, and servicers; real estate agents and brokers; advertising agencies; home builders; lead generators; rate aggregators; and other entities under the FTC’s jurisdiction, the FTC said. The proposal does not address advertising disclosure requirements. This proposed rule would apply to state-chartered credit unions, but not federal credit unions. The Credit Union National Association (CUNA), in a response to an advanced notice of proposed rulemaking released earlier this summer, agreed that the FTC should do more to address predatory lending practices. However, CUNA added, any developed rules should not be imposed on state-chartered credit unions that are subject to the FTC’s jurisdiction under the FTC Act as credit unions have not been the source of the problems that these rules would address. CUNA also recommended that the FTC’s rules focus on practices that are not adequately addressed under current law, but not prohibit or favor certain practices. The FTC is seeking comments on the potential costs and benefits of the rule. The proposed rule will be open for a 45-day public comment period. For the FTC release, use the resource link.
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NCUA Ch. Matz said the FOM proposal is the result of enforcement actions taken where CUs advertised open FOMs.
33 minutes ago
.@TheNCUA wants to know if there are other categories that should get automatic approval, staff says.
34 minutes ago
Alumni,homeowner assoc,labor unions, electric coops,scouting & church groups,assn. to further culture of nt'l or ethnic group are auto OKed.
36 minutes ago
Corporate separateness also would be required under FOM proposal. Separate physical location from FCU too.
41 minutes ago
An association must be found not to have been found to be formed for the purpose of being added to FOM, @TheNCUA says.
42 minutes ago