You’ve seen the ads – on the Internet, in the newspaper, and cluttering up your mailbox: “No money down – no documentation, we help you buy houses, easy credit!” This type of easy money characterized the lending climate for the last 5 years, and now we’re paying the price.
Well the watchdog of advertising messages is now stepping in, several years too late. The Federal Trade Commission warned more than 200 companies to stop “potentially deceptive” advertising for mortgage products. Uncle Sam, where were you a few years ago when people were buying houses they couldn’t afford and were taking out loans they never should have been offered the terms of which they didn’t understand?
Don’t get me wrong – at Zillow, we love ads for mortgage products. But truth in advertising is important, especially when it comes to something as important as a mortgage.
Source: zillow.com