Senator Menendez Targets Misleading Mortgage Ads

New legislation would give FTC double the resources to enforce and research truth-in-advertising related to mortgages

December 12, 2007 -- WASHINGTON – With millions of Americans stuck in subprime mortgages and many having been lured by misleading advertisements, U.S. Senator Bob Menendez (D-NJ) today introduced legislation that would aid the Federal Trade Commission in cracking down on these ads.

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“Truth-in-advertising for homebuyers can mean the difference between getting loans they can actually afford and getting left out in the cold,” said Senator Menendez. “There is no doubt that the deceptive advertising of these ticking-time-bomb mortgages was a factor in creating the tsunami of foreclosures that we face now. As part of the ‘Know Your Mortgage’ initiative, I am working to ensure that homebuyers are no longer being inundated with misleading information.”

Senator Menendez’s legislation would double the FTC’s budget for researching and enforcing advertising standards regarding mortgage ads. He is introducing a series of legislation as part of his “Know Your Mortgage” initiative, which is meant to give homebuyers the knowledge and accurate information they need to make sound decisions about the mortgage process. Last month, Menendez introduced legislation to expand access to financial education (http://menendez.senate.gov/newsroom/record.cfm?id=287851).

Source: Senator Bob Menendez