Message from Cindy Fazio

With the recent updates to the Consumer Loan and Mortgage Broker Practices Acts rules (chapters 208-620 and 660 WAC) and with continuing complaints about improper advertising, I thought it would be a good time for a refresher on advertising. Both acts define advertising broadly to include web pages, social media, and other types of service platforms (think homes for sale and company evaluations – may rhyme with pillow and kelp!), in addition to printed material and audio broadcasts. Although the licensed company is ultimately responsible for all advertisements, in the mortgage loan industries, mortgage loan originators (MLOs) are also required to comply with advertising requirements, and they may also be held individually responsible for violations in advertisements they control.

As you know, website platforms are all different and have varying degrees of customization. Additionally, some service platforms, such as pillow and kelp, may create a profile for your company without your permission and input. In that case, if the content is not compliant with the advertising rules, it is likely we will not cite you for an advertising violation - because you do not control that profile/content. More generally, for all web pages, including social media and platform sites, specific information must appear on the “landing page.” The landing page is the page that the URL (web page address) takes a consumer to when they visit a web page or click on a link to a company’s web page or social media account. However, some social media platforms may not always allow the required information to be on the landing page or, in the case of a NMLS number, closely following the MLO’s name. If that is the case, the required information may be displayed in an “about” or other similar section. Sometimes, these sections are on the social media page for the licensee, but sometimes an extra click to launch that information may be required. In addition, some social media platforms do not have the functionality for an actual hyperlink to the NMLS consumer access website. Instead, including the full address for a consumer to copy and paste into their browser may suffice. For more details, see WAC 208-620-622 and WAC 208-660-446.

Another change in the rules allows a company to use a URL address that is not their licensed business name as long as the URL does not misrepresent the identity of the company or contain any misleading, deceptive, or otherwise prohibited language. See WAC 208-620-621 and WAC 208-660-445.

Finally, companies may now use an approved trade name or DBA if coupled with either the main office name as entered in the NMLS or the NMLS license number on any advertisement, including electronic advertisements. See WAC 208-620-620, WAC 208-620-622(3), WAC 208-660-180(9).

For more on online advertising, see the article on astroturfing also in this newsletter.