The Statement of Policy provides, among other things, that licensees, when offering a proprietary reverse mortgage loan, should confirm that the applicant understands that the reverse mortgage loan being offered is not a government‐sponsored or insured reverse mortgage loan and explains the differences between a proprietary reverse mortgage loan and government‐sponsored or insured reverse mortgage loan. Licensees also should not offer, solicit or make a reverse mortgage loan for the purpose of financing the sale of a product or service by the licensee or any affiliated person. Connecticut In connection with an advertisement in Connecticut, a mortgage lender, correspondent lender or broker may not use a simulated check. Further, a lender may not make representations such as “verified as eligible”, “eligible”, “preapproved”, “prequalified” or similar words or phrases, without also disclosing, in immediate proximity to and in similar size print, language which sets forth prerequisites to qualify for the residential mortgage loan, including, but not limited to, income verification, credit check, and property appraisal or evaluation. A lender may not use any words or symbols in the advertisement or on the envelope containing the advertisement that give the appearance that the mailing was sent by a government agency. Conn. Gen. Stat. Ann. § 36a‐497(2). Georgia Small loan licensees in Georgia may not use any advertising in the form of a simulated check or other negotiable instrument. While this law generally does not apply to mortgage lenders, use of a simulated check along with other factors such as erroneous messaging or the unauthorized use of a celebrity’s likeness, could be seen as unfair and deceptive advertising. Nevada The mortgage regulator in Nevada has proposed rules that a licensee shall not use advertising material that simulates the appearance of a check or a communication from a governmental entity, or an envelope containing a check or a communication from a governmental entity, unless: (A) The words "THIS IS NOT A CHECK," "NOT NEGOTIABLE" or "THIS IS NOT A GOVERNMENTAL ENTITY," as appropriate, appear prominently on the envelope and any material that simulates the appearance of a check or a communication from a governmental entity; and (B) If the material simulates the appearance of a check, the material does not contain an American Bankers Association number, microencoding or any other marks intended to create the appearance that the material is a negotiable check. 39
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