Tuesday, September 11, 2007

I Wonder if Ray Got a Letter Too

The Federal Trade Commission has published a press release "FTC Warns Mortgage Advertisers and Media That Ads May Be Deceptive". On this page is a link to a sample letter they sent out.

The press release included the following:

For example, some ads touted rates as low as “1%” but failed to disclose adequately:

* that the stated rate was a “payment rate” – not the interest rate – that applied only during the loan’s initial period;
* that low advertised payments applied for only a short period; and
* the loan’s Annual Percentage Rate, the uniform measure of the cost of credit that enables consumers to shop for and compare mortgage offerings.

Some ads promoted only incredibly low monthly payments but failed to disclose adequately the terms of repayment, including payment increases and a final balloon payment

I wonder if Ray Vinson got one about his "No-Spin Mortgage". Perhaps so -- I haven't heard any such ads from him or Bill O'Reilly recently. I was never able to find out any details about his loans on his web site, just an application form. What do you think the chances are that I would have found out if I'd taken the trouble to apply?

While over at the FTC website, you might want to check out their page with links to articles with consumer information about mortgages.


Grace said...
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