3 CRR-NY 38.2NY-CRR

OFFICIAL COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK
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
3 CRR-NY 38.2
3 CRR-NY 38.2
38.2 Solicitation and advertising.
(a) No mortgage broker shall advertise its business in New York in print or electronic media without including the legend “Registered Mortgage Broker-NYS Department of Financial Services” or words to like effect therein. No mortgage banker shall advertise its business in New York without including the legend “Licensed Mortgage Banker-NYS Department of Financial Services” 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.
(f) Every mortgage broker, mortgage banker and exempt organization shall maintain a record of samples of its advertisements (including commercial scripts of all radio broadcasts, television broadcasts and electronic media) for examination by the superintendent for a period of two years from the date of publication.
(g) Any advertisement by a mortgage broker, mortgage banker or exempt organization for a mortgage loan product containing a prepayment penalty which advertisement sets forth the interest rate and/or points of such product shall include a statement indicating that the product has a pre-payment penalty.
3 CRR-NY 38.2
Current through January 31, 2023
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