Which type of mortgage advertising is illegal in New Jersey?

Which type of mortgage advertising is illegal in New Jersey?

• A. Advertising that contains false, misleading, or unsubstantiated claims
• B. Advertising with competitive interest rates
• C. Advertising with testimonials from satisfied customers
• D. Advertising that highlights loan benefits

Answer: (A)

Advertising that contains false, misleading, or unsubstantiated claims is illegal in New Jersey. This is because consumer protection laws are designed to ensure that all advertising related to mortgage lending operates transparently and truthfully. Mortgage lenders and brokers must provide accurate information about their products and services to prevent potential deception. This includes claims regarding rates, terms, fees, or any other aspect that could mislead consumers about the nature or cost of a mortgage. By prohibiting such misleading practices, New Jersey aims to protect consumers from fraud and help them make informed decisions about mortgage products. In contrast, advertising with competitive interest rates, testimonials from satisfied customers, and highlighting loan benefits are generally permissible as long as the information provided is accurate and not misleading. These forms of advertising can be effective in attracting consumers when they present truthful information and comply with relevant regulations.

Advertising that contains false, misleading, or unsubstantiated claims is illegal in New Jersey. This is because consumer protection laws are designed to ensure that all advertising related to mortgage lending operates transparently and truthfully. Mortgage lenders and brokers must provide accurate information about their products and services to prevent potential deception. This includes claims regarding rates, terms, fees, or any other aspect that could mislead consumers about the nature or cost of a mortgage. By prohibiting such misleading practices, New Jersey aims to protect consumers from fraud and help them make informed decisions about mortgage products.

In contrast, advertising with competitive interest rates, testimonials from satisfied customers, and highlighting loan benefits are generally permissible as long as the information provided is accurate and not misleading. These forms of advertising can be effective in attracting consumers when they present truthful information and comply with relevant regulations.