EthicsQuestion 311 of 400
Which of the following mortgage advertising claims is most likely to be a prohibited misrepresentation under Regulation N?
a.'Rates as low as 6.25% APR for qualified borrowers, subject to approval'
b.'Guaranteed lowest payment forever, no matter what'
c.'Contact us for current rates and terms'
d.'FHA and VA loans available'
Explanation
Absolute guarantees like 'lowest payment forever, no matter what' misrepresent that terms cannot change and are prohibited under Regulation N. Properly qualified rate language, an invitation to inquire, and a truthful statement that certain loan types are offered are all permissible.
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