Federal Mortgage LawsQuestion 96 of 400
A lender wants to keep records of its mortgage advertisements to comply with Regulation N. Which practice best supports compliance?
a.Deleting ads immediately after they run
b.Relying only on verbal approval of ad copy
c.Retaining copies of commercial communications and materially different versions for the required period
d.Advertising only rates that are lower than actually offered
Explanation
Regulation N includes recordkeeping requirements directing covered persons to retain copies of materially different commercial communications, sales scripts, and related materials regarding mortgage credit products for a set period (generally 24 months). Good recordkeeping demonstrates that advertisements were not deceptive. Deleting ads or advertising unavailable rates undermines compliance.
Law Reference: Mortgage Acts and Practices Advertising Rule (Reg N, 12 CFR 1014)Practice all 400 questions free — no signup required.
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