Which other federal law has similar advertising rules relating to advertising other than MAAPS?

Which other federal law has similar advertising rules relating to advertising other than MAAPS?

• A. RESPA Reg Z
• B. TILA Reg Z
• C. ECOA Reg B
• D. HMDA Reg C

Answer: (B)

Advertising mortgage terms must be truthful and not misleading. Regulation Z, part of the Truth in Lending Act (TILA), sets the rules for how credit terms may be advertised. When an ad for a mortgage mentions terms such as the interest rate, monthly payment, down payment, or the loan amount, it triggers specific disclosures that must accompany the ad. These include the annual percentage rate (APR), the amount financed, and any key conditions or limitations. The goal is to prevent deceptive or confusing representations about the cost of credit, ensuring consumers can compare offers accurately. MAAPS covers similar protections for mortgage advertising, so Regulation Z provides the comparable federal framework. Other options address different areas: RESPA (Reg X) deals mainly with settlement practices and disclosures; ECOA (Reg B) focuses on fair lending and prohibits discriminatory advertising; HMDA (Reg C) concerns data collection and reporting on mortgage applications. They don’t govern mortgage advertising to the same extent as Regulation Z, which is why Regulation Z is the best parallel.

Advertising mortgage terms must be truthful and not misleading. Regulation Z, part of the Truth in Lending Act (TILA), sets the rules for how credit terms may be advertised. When an ad for a mortgage mentions terms such as the interest rate, monthly payment, down payment, or the loan amount, it triggers specific disclosures that must accompany the ad. These include the annual percentage rate (APR), the amount financed, and any key conditions or limitations. The goal is to prevent deceptive or confusing representations about the cost of credit, ensuring consumers can compare offers accurately. MAAPS covers similar protections for mortgage advertising, so Regulation Z provides the comparable federal framework.

Other options address different areas: RESPA (Reg X) deals mainly with settlement practices and disclosures; ECOA (Reg B) focuses on fair lending and prohibits discriminatory advertising; HMDA (Reg C) concerns data collection and reporting on mortgage applications. They don’t govern mortgage advertising to the same extent as Regulation Z, which is why Regulation Z is the best parallel.