Paco Speaks… (#10) Advertising (incl. Websites)

The SAFE Act requires that any loan officer in the nation must work as a W-2 employee for a bank, mortgage broker, mortgage lender, mortgage banker, or credit union (hereinafter “Employers”). The loan officer cannot stand alone and may only be employed by one entity at a time.

Since a loan officer may not stand alone, a stand-alone website is, also, not a viable option. These days, I am often asked how a loan officer may maintain his/her own website, and I answer that he or she may not do so.

Let’s take a step back and acknowledge that a mortgage website is considered advertising. A business card is, likewise, advertising, as are: newspaper or magazine ads, flyers or brochures, letters or postcards, solicitations, and scripts of TV and radio ads. Consider the following:

* Employers know they are required by law to maintain an “Advertising File” that contains sample copies of all of the above-named types of advertising which are generated by the business.

* Employers, also, know the law prohibits advertisers from including an individual’s loan number or amount or other publicly available information in any advertising, unless strict lender affiliation is addressed and disclaimed.

* Employers should know website domain names (URL’s) may require registration as a trade name and approval by the Georgia Department of Banking and Finance (DBF).

* The safest way for a W-2 employee loan officer to advertise by any medium, including websites, is through the employer. Business cards must now contain more specific data, including the License NMLSR Unique Identification #, and all data must match what is on file with the DBF.

I hope the bullet points above have gotten your attention, because laws are serious, and the mortgage industry is now being regulated by some new laws. If some of you are confused or not clear about the PROCEDURE AND EXACT, SPECIFIC DATA that is required for EACH type of advertisement, you are still on course to follow the law and avoid goofs that could lead to some serious penalties. My advice is simple: before you spend your precious time and hard-earned money on any advertisement medium, refer to:

80-11-1-.02 (of DBF Mortgage Division Rules)

and

7-1-1004.3 (Code Section of Georgia Residential Mortgage Act)

You will find all requirements for your advertising under these two numbers, available by clicking here to reach the DBF website: http://dbf.georgia.gov/00/channel_title/0,2094,43414745_46295996,00.html

Some of you have taken the 4-hour State Rules, Regs and Laws class offered by my school, NMLF (formerly GAMBEF). You can find synopses of 80-11-1-.02 and 7-1-1004.3 immediately by turning to pages 4 and 5 of your class books. You will see the heading:

ADVERTISING FILE

80-11-1-.02

7-1-1004.3

NMLF classes are proving to be very successful, and we will continue with scheduling in 2010. Many students have remarked that they have relied on the NMLF class material to pass both the federal and state tests at the 14 sites throughout Georgia. We wish to thank our students for their feedback.

We at NMLF wish you all a Safe and Prosperous New Year with Good Health and Happiness. We are here to help you make 2010 just that!

DISCLAIMER

National Mortgage Learning Foundation, Inc. (NMLF) has prepared this newsletter to assist Georgia Mortgage Professionals in understanding the new 2008/2009 national licensing laws and other laws and topics related to the mortgage industry. NMLF highly recommends that the reader use this information in conjunction with proper advice from an attorney qualified to assist the reader in understanding laws that apply to the mortgage industry.

Nothing contained herein is to be considered as the rendering of legal advice for any specific case or event. NMLF and its employees are not attorneys, nor should any portion of this newsletter be considered as legal opinion. NMLF does not assume any liability for the use of this newsletter, for legal cites mentioned herein, nor does NMLF accept any liability for the use, misuse, or otherwise utilizing the information contained herein.

Take care and may your New Year be Blessed,

Frank “Paco” Torch, CRMS, CITRMS

NMLF, President

#1400038

NAMB Certified National Instructor

Tel.: (770) 751-9820

E-Fax: (404) 393-8975

E-mail: nmlf@graduate.org

Website: www.nmlf.us

“A pessimist sees the difficulty in every opportunity;

an optimist sees the opportunity in every difficulty.”

Winston Churchill