|(a) A mortgage banker or originator that advertises
rates, terms, or conditions must comply with the disclosure requirements
of Regulation Z.
(b) Any advertisement of residential mortgage loans
or for residential mortgage loan origination services which is offered
by or through a mortgage banker or originator must conform to the
(1) A mortgage banker or originator may only advertise
for such products and terms as are actually available and, if availability
is subject to any material requirements or limitations, the advertisement
must specify those requirements or limitations.
(2) Except as provided in subsections (c) and (d) of
this section, the advertisement must contain:
(A) the name of the mortgage banker or mortgage company
followed by its NMLS identification number; and
(B) the name of the sponsored originator followed by
the sponsored originator's NMLS identification number.
(3) An advertisement must not make any statement or
omit relevant information the result of which is to present a misleading
or deceptive representation to consumers.
(4) An advertisement must comply with applicable state
and federal disclosure requirements.
(c) For purposes of this section, an advertisement
means a commercial message in any medium that promotes directly or
indirectly, a residential mortgage loan transaction or is otherwise
designed to solicit residential mortgage loan business for the mortgage
banker or originator. This includes "flyers," business cards, or other
handouts, and commercial messages delivered by and through a social
media site. However, the requirements of subsection (b)(2) of this
section do not apply to:
(1) any advertisement which indirectly promotes a residential
mortgage loan transaction and which contains only the name of the
mortgage banker or originator and not any contact information with
the exception of a website address, such as on cups, pens or pencils,
shirts or other clothing (including company uniforms and sponsored
youth league jerseys), or other promotional items of nominal value;
(2) any rate sheet, pricing sheet, or similar proprietary
information provided to realtors, builders, and other commercial entities
that is not intended for distribution to consumers; or
(3) signs located on or adjacent to the mortgage banker's
registered office as provided by §81.206 of this title (relating
to Office Locations; Remote Work).
(d) Advertising Directly by a Mortgage Banker. The
provisions of subsection (b) of this section notwithstanding, a mortgage
banker may advertise directly to the public and not by and through
a sponsored originator, and the requirements of subsection (b)(2)(B)
of this section do not apply to such advertisements. An advertisement
posted, promoted, disseminated, distributed, delivered, or otherwise
made by an originator sponsored by the mortgage banker will not be
considered an advertisement made directly by a mortgage banker for
the purposes of this subsection.
|Source Note: The provisions of this §81.203 adopted to be effective July 5, 2012, 37 TexReg 4873; amended to be effective September 5, 2013, 38 TexReg 5703; amended to be effective January 3, 2021, 46 TexReg 157; amended to be effective November 4, 2021, 46 TexReg 7389