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STATE ADVERTISING RULES FOR MORTGAGE BROKERS

PREPARED FOR LOAN TOOL BOX

(Revised August 4, 2006)

| | | |Number of loans that |

|STATE |Broker advertising must include the following: |Broker advertising may not include the following: |can be brokered without|

| | | |a state license |

|Alabama |N/A |N/A |1 |

|Alaska |N/A |N/A |Any number (brokers not|

| | | |licensed by state) |

|Arizona |Broker’s name, license number and principal Arizona office address[1] |N/A |0 |

|Arkansas |If ad includes rates or loan terms, must indicate if rate is adjustable and |N/A |0 |

| |material limitations on loan terms | | |

|California |The license under which the loan is made or arranged |The name or phone number of an unlicensed person if the ads pertain to loans or |0 |

| |If broker is licensed as a real estate broker, the fact that he is supervised |negotiation of loans | |

| |by the Department of Real Estate[2] |References to the sale of mobile homes | |

|Colorado |N/A |Reference to the trade name or trademark of a lender without the lender’s consent |Any number (brokers not|

| | |Reference a loan number, loan amount, or other specific loan information that is |licensed by state) |

| | |not publicly available | |

|Connecticut |The words “BROKER ONLY, NOT A LENDER” |Documents that have appearance of checks (simulated checks) |0[3] |

| |If comparison between loans is included in ads or hypothetical loans are |Terms such as “verified as eligible,” “eligible,” “preapproved,” or “prequalified”| |

| |described, specific terms must be provided | | |

| | |Envelopes giving appearance that sender is a government agency | |

|Delaware |Statement that broker is a licensed loan broker |N/A |5 or fewer in a |

| | | |12-month period |

|DC |N/A |Words representing the broker is a bank, savings and loan, credit union or |0 |

| | |insurance company | |

|Florida |N/A |Logo or name of a financial institution without the institution’s consent |0 |

| | |Advertise unlimited access to credit | |

| | |Misuse of name of, or implying a federal agency | |

|Georgia |Broker’s name, license # and office address |Indication that rates are set or approved by the state or by any state law |5 |

| |The words “Georgia Residential Mortgage Licensee” | | |

|Hawaii |N/A |N/A |0 |

|Idaho |Broker’s name |Misleading words that suggest the ad is from the borrower’s current lender or a |0 |

| | |government agency | |

| | |Words suggesting a “limited” offer, if offer not actually limited | |

|Illinois |Name and office address |Statements that rates or charges are “approved,” “recommended,” or “set” by the |0 |

| |The words Illinois Residential Mortgage Licensee |state or the broker license law | |

| |License number (for Internet ads) | | |

|Indiana |N/A |N/A |0 |

|Iowa |N/A |N/A |4 |

|Kansas |The words “Kansas licensed mortgage company”[4] |Statements that rates or charges are “approved,” “recommended,” or “set” by the |0 |

| |Name and license number of the licensee |state | |

|Kentucky |N/A |N/A |0 |

|Louisiana |N/A |N/A |0 |

|Maine |Broker’s license number |N/A |0 |

|Maryland |Name and office address (same as address on broker’s license) |Name or address other than those shown on the broker’s license |1 per calendar year |

|Massachusetts |License # and type of license held |The words “immediate approval,” “immediate closing,” “instant closing,” “avoid |5 or fewer in a |

| |Business name and the word “broker” |foreclosure” or “bad credit, no problem” |12-month period |

| |If rates used, must be expressed as annual percentage rate (except for less |Any language which suggest the broker funds or approves loans, or guarantees rates| |

| |conspicuously stated simple annual rate, if stated in conjunction with the APR)| | |

| |The words “We arrange, but do not make loans” | | |

|Michigan |N/A |If broker is not a bank, the words “bank,” “banker,” “banking,” “banc,” “Bancorp” |0 |

| | |or similar words implying a bank or business of banking | |

|Minnesota |N/A |N/A |0 |

|Mississippi |Name and address of the licensed broker[5] |Indication that rates are “recommended,” “approved,” “set” or “established” by the|0 |

| |The words “Mississippi Licensed Mortgage Company |state. | |

| |If interest rate or monthly payment amount is quoted in ads, a statement | | |

| |whether interest is fixed or adjustable | | |

| |If interest rate is adjustable, the adjustment index and adjustment frequency | | |

| |The term (in months or years) to fully repay the loan with regularly scheduled | | |

| |payments | | |

| |The APR | | |

|Missouri |Name and address of the broker |N/A |0 |

|Montana[6] |Name and address of the broker |N/A |0 |

| |Broker’s license number | | |

| |If an individual loan originator is named, that person’s license number and | | |

| |license number of his employer[7] | | |

|Nebraska |N/A |N/A |Fewer than 10 per |

| | | |calendar year |

|Nevada[8] |Name, address and phone number of the licensed broker |Materials simulating a check (unless the words “Not Negotiable,” or “this is not a|0 |

| |If licensed activity included in advertisements, it must be stated in |check” are included) | |

| |non-technical terms |Materials indicating government agency | |

| | |ABA routing number, microencoding or marks intended to create appearance of a | |

| | |check | |

|New Hampshire |The words “licensed by the New Hampshire Banking Department” |N/A |0 |

|New Jersey |Name, address and phone number of the licensed mortgage broker |The words “immediate approval,” “immediate closing,” or any indication of |0 |

| |The words “Licensed by the N.J. Department of Banking and Insurance” |unqualified access to credit | |

| |Conspicuous statement that broker does not fund loans or make commitments | | |

| |If specific rates are advertised, a statement that loans are currently closing | | |

| |at those rates but that rates are subject to change | | |

|New Mexico |N/A |N/A |0 |

|New York |The words “Registered Mortgage Broker, NYS Banking Department” |Language indicating the broker will fund loans (except for FHA loans, which may be|0 |

| |Name and street address of the broker’s NY office (any of its NY offices if |funded by approved FHA loan correspondents) | |

| |more than one)[9] | | |

| |If advertised loan has a prepayment penalty, a statement to that effect | | |

| |A statement that the broker arranges loans with third party providers | | |

|North Carolina |N/A |N/A |0 |

|North Dakota |N/A |N/A |0 |

|Ohio |Name, street address and license number |N/A |0 |

|Oklahoma |N/A |Advertisements via fax are limited (unless there is pre-existing relationship or |0 |

| | |made in a follow up to sales call or sales lead) | |

|Oregon |N/A |Language indicating all borrowers will apply for a loan |0 |

| | |Language indicating persons with bad credit will qualify for loans | |

| | |Official looking emblems or logos (eagles, crests, flags) | |

| | |Envelopes which resemble government mailings | |

| | |Slogans like “buy U.S. savings bonds” | |

| | |References to financial institutions holding existing loan (without the | |

| | |institution’s consent) | |

| | |Representation that the broker is associated with a lender or bank (unless it is) | |

| | |Advertisements specifying “wholesale rates” or using the words “wholesale rates” | |

| | |Teaser rates (without disclosure that rate is a teaser or bought-down rate and | |

| | |indication of the cost of the buy-down) | |

|Pennsylvania |Language indicating broker is licensed by the Department of Banking |Broker’s individual name, if second mortgage loans are advertised, without the |Fewer than 3 loans per |

| | |name of the sponsoring broker (i.e., the individual’s employer) |year |

|Rhode Island |The words “Rhode Island Licensed Loan Broker” |N/A |0 |

| |The type of license held | | |

|South Carolina |Terms complying with Regulations X (RESPA) and Z (Truth in Lending) (if |Language indicating the broker is a lender |0 |

| |applicable to the ad involved) | | |

|South Dakota |N/A |N/A |0 |

|Tennessee |N/A |N/A |0 |

|Texas |Name of the broker |Reference to loan rates other than using the APR (and a simple interest rate, if |0 |

| |The phrase “mortgage broker” |the size of the type is smaller than the type used to state the APR) | |

| |License number of the broker | | |

| |Broker’s physical street address in Texas | | |

| |If finance charge is stated in the ad, the term “APR” (and no other rate except| | |

| |simple annual rate, in type size smaller than the APR) | | |

| |If loan rate advertised is subject to increase, disclosure of that fact | | |

|Utah |N/A |N/A |0 |

|Vermont |N/A |N/A |0 |

|Virginia |The name of the mortgage lender or mortgage broker as set forth in his license |False or misleading statements or representations |0 |

| |A statement that the mortgage broker is licensed by the "Virginia State |Statements or implications that: | |

| |Corporation Commission." |1. A mortgage loan will be funded by a mortgage broker. | |

| |The license number assigned by the commission to the mortgage broker (i.e., |2. A mortgage loan can be approved or closed immediately. | |

| |MB-XXX, ML-XXX, or MLB-XXX). | | |

| |If licensed solely as a mortgage broker, a statement that loans are funded by | | |

| |third-party mortgage lenders. | | |

| |If an advertisement contains a rate of interest, a statement that the stated | | |

| |rate may change or not be available at loan commitment or lock-in. | | |

| |If an advertisement contains specific information about a consumer's existing | | |

| |mortgage loan and the information was not obtained from the consumer, a | | |

| |statement identifying the | | |

| |source of such information (e.g., public court records, credit reporting | | |

| |agency, etc.). | | |

|Washington |Name of the broker (as stated on broker’s license) |Rate of interest without disclosure of corresponding APR |0 |

| | |Envelope or stationary with official looking emblems | |

| | |Envelopes or stationary with warnings, notices, or citing form numbers | |

| | |Statements that the broker is affiliated with a federal agency, bank or credit | |

| | |union (if false) | |

| | |Statement that the solicitation is from a person other than the mortgage broker | |

| | |that sends it out | |

| | |Statement that information on the consumer’s current loan was provided by a person| |

| | |other than the actual furnisher of such information | |

|West Virginia |N/A |N/A |0 |

|Wisconsin |N/A |N/A |0 |

|Wyoming |N/A |N/A |0 |

-----------------------

[1] Ads may include trademarks and service marks.

[2] The terms “broker,” “agent,” “realtor,” “loan correspondent,” or abbreviations are sufficient. If unlicensed, a broker who advertises on the Internet must use this disclaimer on its web site: “The services referred to herein are not available to persons located within the State of California.”

[3] The statute exempts those who “make” 5 or fewer mortgage loans in a consecutive 12-month period but we read this (and believe the Department of Banking would agree) as an exemption from licensing for lenders, not for brokers (although by its express terms it would exempt brokers who do not make more than 5 loans in a 12-month period, so a broker that makes no loans at all would be exempt).

[4] These requirements apply if the advertisements are directed at Kansas residents.

[5] Applicable to advertising disseminated primarily in Mississippi.

[6] Advertising does not include stationary or business forms, but does include business cards. The business card of a loan originator who is employed by a licensed mortgage broker can list the licensed broker’s name (without the broker’s license number) if it also lists the mortgage originator’s name (i.e., the card-holder) and the originator’s license number.

[7] If the mortgage broker or loan originator advertises as an individual, the person’s name, address and license number must be included. The requirements above apply when the advertisement is made by the licensed mortgage broker entity. Mont. Code Ann. §32-9-121.

[8] A mortgage broker must submit his proposed advertisements to the Commissioner of the Division of Mortgage Lending for approval. (No approval required for white-page listings, employment recruiting announcements, office signs, banners, magnetic car signs, business cards and letterhead containing only the broker’s name, address and telephone number if used for identification only.) “Advertising” includes commercial messages promoting the availability of mortgage products or investments from the mortgage broker, including: (a) print media; (b) sales literature; (c) sales brochures or flyers; (d) billboards; (e) Yellow-page listings if more than a line listing; (f ) radio and television ads; (g) mass mailings distributed by US mail, another delivery service, or electronic mail; (h) telephone or seminar scripts; and (i) websites or other Internet sites that promote or accept loan applications. Approvals for advertising must be maintained at the mortgage broker’s location and be available for inspection for at least 1 year after the last day the advertisement is used. [Nev. Admin. Code §645B.240.]

Mortgage broker advertising must comply with Nevada and federal deceptive trade practices laws and applicable federal rules on advertising interest rates. If the representation of interest rates complies with Regulation Z, 12 C.F.R. Part 226, and the content will continue to comply with Nevada law on advertising, a broker may make nonsubstantive changes to his advertisements without additional approval. Nonsubstantive changes means:

     (a) changes to quoted interest rates and corresponding annual percentage rates;

     (b) promoting another mortgage agent or other branch locations in the same format;

     (c) placing website links to noncommercial or consumer education websites (but an Internet link on a mortgage broker’s website that links to the website of another commercial enterprise must notify the user that he is leaving the mortgage broker’s website);

     (e) changes to phone numbers; and

     (f) word changes that do not alter the content of the advertisement.

Advertising designed to solicit money from private investors must include the following disclosure: “Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured.” [Nev. Rev. Stat. §645B.189.]

[9] If broker has more than 10 NY offices, this requirement does not apply.

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