New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 38 - Definitions Of Terms; Advertising; Application And Commitment Disclosures And Procedures; Improper Conduct Under Article 12-d › Section 38.2 - Solicitation and advertising

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No
				mortgage broker shall advertise its business in New York in print or electronic
				media without including the legend "Registered Mortgage Broker-NYS Banking
				Department" or words to like effect therein. No mortgage banker shall advertise
				its business in New York without including the legend "Licensed Mortgage
				Banker-NYS Banking Department" or words to like effect therein. Business cards,
				letterhead and general electronic media communications, to the extent that they
				are not used for general advertising purposes, need not include the
				legend.
(b) Any advertisement by a
				mortgage broker, mortgage banker or exempt organization in print or electronic
				media must indicate the name of the entity and a street address of any one of
				its offices in New York State or, if the entity is not located in New York
				State, the street address of any one office outside New York. This requirement
				will not apply to advertisements made by a mortgage broker, mortgage banker or
				exempt organization having more than 10 offices in New York State.
(c) No mortgage loan products may be
				advertised by a mortgage broker, mortgage banker or exempt organization unless
				the entity has the advertised product available to a reasonable number of
				qualified applicants responding to the advertisement on the date the
				advertisement appears, or the entity's next business day. Nothing in this
				section shall require a lender to make a loan to an unqualified applicant. This
				requirement shall not be deemed to be violated if the aggregate principal
				amount of the advertised product available to all applicants is limited to the
				amount specified in an agreement between the entity and a third person (e.g.,
				State mortgage agency) to sell such product to the third person, and the entity
				discloses in the advertisement for such product that the availability of such
				product is limited.
(d) No
				advertisement by a mortgage broker shall contain language which indicates or
				suggests that the mortgage broker will fund a mortgage loan. Any advertisement
				by a mortgage broker must contain a statement to the effect that the mortgage
				broker arranges mortgage loans with third-party providers.
(e) No mortgage broker, mortgage banker or
				exempt organization shall fraudulently or deceitfully advertise a mortgage
				loan, or misrepresent the terms, conditions or charges incident to a mortgage
				loan in any advertisement therefor. Without limiting the foregoing, the
				following conduct shall be deemed fraudulent, deceitful or misleading:
(1) the advertisement of "immediate approval"
				of a loan application or "immediate closing" of a loan;
(2) the advertisement of a "no-point"
				mortgage loan when points, as defined herein, are accepted as a condition for
				commitment or closing, or the advertisement of an intentionally incorrect
				specific number of points;
(3) the
				advertisement that an applicant will have unqualified access to credit without
				disclosing what material limitations on the availability of credit may exist,
				such as the percentage down payment required, that a higher 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 time period within which a commitment will be
				issued unless a commitment will be issued to a qualified applicant within the
				time period specified, if at all; and
(5) the advertisement of a mortgage loan
				where a prevailing rate is indicated in the advertisement, unless the
				advertisement specifically states that the expressed rate may change or not be
				available at commitment or closing.