The New MAP Rule From the FTC

A new rule originally published by the Federal Trade Commission and now transferred to the Consumer Financial Protection Bureau became effective August 19, 2011. The rule applies to mortgage information being provided to consumers.

I imagine now many of you are thinking that you do not care because you do not do loans. Unfortunately the law is written so broadly that you may still be covered by its provisions.

If you just tell a consumer that mortgage rates are about 4% you are probably ok. If you tell them mortgage rates are about 4% with 20% down for 30 years you are probably subject to the rule. Likewise if you provide a consumer a lender rate sheet or leave rate sheets laying out at your open house, you must comply with the rule.

Not only does the new law require certain disclaimers be made to consumers, it also requires you to keep a copy of any notices or rate sheets you provide to consumers for at least two years. They need to be maintained within the broker’s record retention system so that they can be provided to regulators upon request.

If you are particularly industrious and want to read the entire 22 pages of the rule you can go to the Federal Register and search for 16 CFR Part 321.

NAR has published a two page Letter of the Law article which can be downloaded at www.realtor.org/letterlw.nsf/pages/0811maprule?opendocument&login&Print=Yes.

CAR is also working on a more detailed description which will be published soon as a Q&A in the legal section at www.car.org.

In the interim, the wisest course of action for a real estate broker would be to leave the provision of loan information to consumer to the lending professionals.

If you have any questions on this article or any other aspect of real estate law please contact me at the Hanson Law Firm at 916 447-9181 or log on to our website at www.HansonLawFirm.com.