1301:8-7-07 Advertising.

(A) As used in chapter 1322. of the Revised Code and this rule, "advertisement" and "advertising" mean any form of sales or promotional materials used in connection with a mortgage broker business, regardless of the medium used, including all material printed, published, displayed, distributed or broadcast. Information distributed by lenders to mortgage brokers solely for the use of the mortgage brokers and not for dissemination to the public is not considered advertisement and is not subject to this rule if the information is not distributed to the public and if the printed material conspicuously states that the document is not intended as an offer to extend credit nor a commitment to lend; the loan interest rates, fees, and terms presented herein are for illustrative purposes only and may not be currently available; and that the document has been prepared to assist mortgage brokers in illustrating some of the financing options available to buyers.

(B) Every advertisement placed, or caused to be placed, by a registrant shall:

(1) Clearly identify the registrant by stating the registrant's true name as printed on the registrant's certificate of registration. Where a registrant has received the approval of the superintendent of the division of financial institutions to conduct business under a trade or alternative name pursuant to rule 1301:8-7-22 of the Administrative Code, the registrant may use its true, trade or alternative name, or any combination of them, as they appear on the certificate of registration issued by the division. The words"mortgage broker" or the authorized use of trade names or insignia indicating membership in a mortgage or lending organization, although not part of the name, may be used by such registrant in advertising; and

(2) List the registrant's certificate of registration number; and

(3) Specify the registrant's office address as listed on the registrant's certificate of registration. Providing telephone numbers and or newspaper or post office box addresses without listing the address as printed on the registrant's certificate of registration is prohibited.

(C) The identifying information required by division (B) of this rule shall appear in any written advertisement using a font no smaller than ten point times new roman.

(D) Division (B) of this rule shall not apply to minimal promotional advertising done on pens, pencils, pocket calendars, balloons, coffee mugs and similar items. E-mail and internet addresses are considered minimal promotional advertising, but the content of a web page or e-mail is not. For the purpose of radio advertisements, a statement of the full business name and the number listed on the certificate of registration shall be sufficient to meet the requirements of this rule.

(E) All internet advertising shall comply with division (B) of this rule by either placing the name, registration number and office address on every viewable web page of the website within the registrant's ownership and or control, or place the name, registration number and office address on the home page and place a link to the home page on each additional web page. For purposes of this rule, a web page is one that may or may not scroll beyond the borders of the screen.

(F) A registrant shall not place, or cause to be placed, an advertisement that:

(1) States that loans or referrals will be made within a specified time after the loan application is received.

(2) Indicates that special terms, reduced rates, guaranteed rates, particular rates or any other special feature of mortgage loans are available unless the advertisement clearly states any limitations that apply.

(3) Uses unqualified superlatives including, but not limited to, "lowest rates," "lowest costs," "lowest payment plan," or "cheapest loans," or that makes offers that cannot be reasonably fulfilled or substantiated.

(4) Uses the words "new" or "reduced" or words of similar import in connection with costs for more than ninety days after the costs become effective.

(5) Indicates that mortgage loans are available to buyers with "previous bankruptcy," "no credit," "bad credit," or the like unless the advertisement clearly explains any limitations that apply, or states that "certain limitations apply, call for details." In any written advertisement, the actual limitations or the warning that "certain limitations apply, call for details" must appear in a font no smaller than ten point times new roman.

(6) Contains an official-looking emblem, that is designed to resemble an official government mailing, such as a mailing from the Internal Revenue Service or the U.S. Department of the Treasury.

(7) Contains warnings or notices citing codes or form numbers made to appear like government codes or form numbers that are not required to be shown on the mailing by the U.S. Postal Service.

(8) Advertises available interest rates without also disclosing the corresponding annual percentage rates as defined in and required by Federal Reserve Regulation Z, as amended, commonly known as the Truth-in-Lending Act.

(G) Information on an internet website maintained by a registrant or licensee which becomes outdated or expired, shall be updated within thirty (30) calendar days of the information becoming outdated or expired. Each website maintained by a registrant or licensee shall disclose the date upon which the information contained therein was most recently updated. If a registrant's or licensee's website is maintained on the registrant's or licensee's behalf by a third party, the registrant or licensee shall provide to the third party, a timely written notice, by mail, fax or electronic means, of any updates to outdated or expired information, so that such updates may be accomplished in accordance with this rule. A registrant or licensee who provides such timely notice shall not be in violation of this paragraph, if the third party fails to effect a requested change as notified.

(H) Every registrant shall maintain, in each registered location approved by the superintendent of financial institutions, a file of all advertising, including scripts of radio and television commercials, for a period of four years from the date the advertisements are published or disseminated.

Replaces: Part of 1301:8-7-07

Effective: 09/01/2006
R.C. 119.032 review dates: 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1322.12
Rule Amplifies: 1322.09
Prior Effective Dates: 1-22-95