(Note: These tips pertain to the industry cited above and do not necessarily track our experience with the company in whose report they appear. In particular, industry complaints referenced below are typical of the industry as a whole, but not necessarily every company in the industry.)
Mortgage advertisements with rates to good to be true are addressed in new rules from the Texas Savings and Loan Department, which regulates mortgage brokers. Effective June 1, 2004, advertisements will be required to include licensee address, license number, and the broker's name, among other disclosures. The rules will also require disclosure of detailed rate information.
The Better Business Bureau recommends that you do at least the following before responding to any ad that seems too good to be true:1. Check on the broker's license and enforcement record with the Texas Savings and Loan Department at www.tsld.state.tx.us or toll-free at 877- 276-5550.2. Obtain the Better Business Bureau report from the Bureau serving the area where you reside and from the Bureau where the broker is headquartered.3. Read the consumer notices on the Texas Savings and Loan Department's Web site at http://www.tsld.state.tx.us/commnotices.htm. They offer good advice on the advertising and selling practices of mortgage brokers.