New Jersey Administrative Code › Title 3 - BANKING › Chapter 2 - ADVERTISING › Subchapter 1 - ADVERTISING BY FINANCIAL INSTITUTIONS › Section 3:2-1.4 - Violations of the Act

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No financial
				institution shall make, publish, disseminate, circulate, or place before the
				public, or cause directly or indirectly to be made, published, disseminated,
				circulated, or placed before the public, in a newspaper, magazine or other
				publication, or in the form of a notice, circular, pamphlet, letter or poster,
				or over any radio or television station, or in any other way, an advertisement,
				announcement or statement containing any assertion, representation or statement
				with respect to the business of banking, lending or being a financial
				institution or with respect to any person in the conduct of such business,
				which is inaccurate, untrue, deceptive or misleading, or which negatively
				affects the public's confidence in such financial institution or financial
				institutions in general.
(b)
				Without limiting (a) above, the following conduct shall be deemed deceptive or
				misleading:
1. The advertisement of
				"immediate approval" of a loan application or "immediate closing" of a loan, or
				words to that effect;
2. The
				advertisement of a "no-point" mortgage loan when points, as defined herein, are
				charged or the advertisement of an incorrect specific number of
				points;
3. The advertisement of
				unqualified access to credit without clearly and conspicuously disclosing that
				material limitations on the availability of such credit may exist, including,
				but not limited to, limitations such as the percentage of down payment
				required, that a higher interest rate or points may be required, or that
				restrictions as to the maximum principal amount of the loan offered may
				apply;
4. The advertisement of a
				specific rate for a mortgage loan unless:
i.
				The lender offers lock-in agreements to a reasonable number of qualified
				applicants at that rate; or
ii. The
				advertiser specifically states in the advertisement that the expressed rate is
				the rate at which such loans offered by the lender are currently being closed
				or committed (in cases where the lender customarily commits to close at a
				specific rate) and that the rate is subject to change;
5. The advertisement of a mortgage loan by a
				residential mortgage broker (or residential mortgage lender that acts merely as
				a mortgage broker with regard to the advertised loan) or by a mortgage loan
				originator employed by such licensee that does not specifically and
				conspicuously state that the advertiser will not make any mortgage loan
				commitments or fund any mortgage loans under the advertised program and does
				not contain a statement that conspicuously states that the advertising
				licensee, or his or her employer if the advertiser is a licensed mortgage loan
				originator, arranges loans with third-party providers;
6. The advertisement of a mortgage loan or
				mortgage loan services by a residential mortgage lender, correspondent mortgage
				lender, residential mortgage broker or residential mortgage loan originator
				without including in the advertisement or broadcast announcement, the name,
				address and telephone number of the licensee and the words "licensed by the
				N.J. Department of Banking and Insurance";
7. The advertisement of a deposit account
				which does not comply with the requirements of the Federal Truth in Savings
				Law,
				12 U.S.C.
				4301 et seq., and Federal Reserve Regulation
				DD, 12 CFR 230; and
8. The failure
				of any advertisement to comply with the provisions of
				3:2-1.3.