APPENDIX TO NRMLA ETHICS ADVISORY OPINION 2010‐02 Overview of Federal Regulations and Guidelines: Helping Families Save Their Homes from Foreclosure Act of 2008 (HFSH Act) Under section 203 of the HFSH Act, FHA‐approved mortgagees must use their HUD registered business names in all advertisements and promotional materials related to FHA programs. HUD registered business names include any alias or “doing business as” (DBA) on file with FHA. FHA‐approved mortgagees must keep copies of all advertisements and promotional materials for a period of two years from the date that the materials are circulated or used to advertise. The HFSH Act expands FHA’s ability to pursue civil money penalties against any person, party, company, firm, partnership, or business, including sellers of real estate, closing agents, title companies, real estate agents, mortgage brokers, appraisers, loan correspondents, for any use of Federal Housing Administration, Department of Housing and Urban Development, Government National Mortgage Association, Ginnie Mae, the acronyms HUD, FHA, or GNMA, or any official seal or logo of the Department of Housing and Urban Development, except as authorized by the Secretary. Members are reminded that FHA rules generally prohibit misleading advertising. An approved mortgagee may not use deceptive advertising. All advertisements must emphasize the name of the company and not the government. False advertising or wrongfully misusing names to indicate Federal agency or Government seals is a potential violation of the federal criminal code. See 18 U.S.C. §709 and 18 U.S.C. §1017. The following is an illustrative list of prohibited advertising practices as identified by the FHA, but should not be considered all‐inclusive: • Improperly using the name or seal of FHA or HUD to imply that the advertisement is from or is endorsed by FHA or HUD; or • Improperly advertising on a government type form designed to simulate an official Federal government document. Federal Reserve HOEPA Regulation Amendments to Regulation Z On July 30, 2008, the Federal Reserve Board published final rules amending Regulation Z, which implements the Truth in Lending Act and Home Ownership and Equity Protection Act (or HOEPA). The goals of the amendments are to ensure that advertisements for mortgage loans provide accurate and balanced information, and do not contain misleading or deceptive representations. Below is a summary of some of the new rules brought about by the HOEPA amendments, effective October 1, 2009. 34
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