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Question 1 of 6

1. Question
A mortgage company mails a solicitation letter to a homeowner and prominently displays the name of the homeowner’s current mortgage lender.

What must the advertisement prominently disclose?
- A) The consumer’s current unpaid mortgage balance
- B) The name of the person or creditor making the advertisement
- C) The borrower’s current escrow balance
- D) The name of the closing attorney
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Question 2 of 6

2. Question
A lender sends a refinance solicitation using the name of the borrower’s current mortgage company.

What additional disclosure is required?
- A) A statement that the advertisement guarantees approval
- B) A statement that the current lender approved the solicitation
- C) A clear and conspicuous statement that the advertiser is not associated with, or acting on behalf of, the consumer’s current lender
- D) A statement that the loan will eliminate all debt
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Question 3 of 6

3. Question
A lender advertises a refinance loan with the headline “Refinance today and wipe your debt clean!”

Why is this advertisement prohibited?
- A) Because refinance loans may never be advertised
- B) Because it misleadingly claims debt elimination when the product merely replaces one debt obligation with another
- C) Because debt consolidation is always illegal
- D) Because home-secured loans may not reference consumer debt
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Question 4 of 6

4. Question
A mortgage advertisement states that a home-secured loan may reduce monthly debt payments, consolidate debts, or shorten the repayment term.

Under the final rule, is this type of advertisement prohibited?
- A) Yes, because all debt-related claims are prohibited
- B) Yes, because home-secured loans may not mention debt consolidation
- C) No, because the rule prohibits misleading debt-elimination claims, not truthful claims that the loan may reduce payments, consolidate debts, or shorten the term
- D) No, but only if the loan is FHA-insured
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Question 5 of 6

5. Question
A for-profit mortgage broker advertises itself as a “mortgage counselor.”

Why could this advertisement violate the final rule?
- A) It creates a false impression that a for-profit mortgage broker or lender is acting as a counselor
- B) Mortgage brokers may never advertise their services
- C) Only banks may use the word counselor
- D) All financial counseling services are prohibited in mortgage advertisements
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Question 6 of 6

6. Question
A lender publishes a Spanish-language advertisement for a home-secured loan. The ad provides the initial rate and payment in Spanish, but gives the fully indexed rate and fully amortizing payment only in English.

Why could this advertisement violate Truth-in-Lending advertising rules?
- A) Foreign-language mortgage advertisements are prohibited
- B) All advertisements must be written only in English
- C) The ad improperly gives some trigger terms or required disclosures in one language and other required disclosures only in another language
- D) Spanish-language advertisements are exempt from disclosure rules
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