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Newport Beach, CA--The Department of Housing and Urban Development has found a new bone to pick with FHA lenders: advertising meant to look like official government forms.
While the Federal government doesn't win too many popularity contests, some lenders have found that the appearance of government affiliation helps to generate consumer interest. Some advertisements have even gone so far as to suggest that the FHA is a subsidy or grant program in order to get consumers to make a call.
This type of advertising has raised ire at HUD, and an official there warned attendees at a Title One Home Improvement Lenders Association meeting here that monitors are on the lookout for misleading ads.
"Some of the advertising we have seen is extremely troubling to the agency," said Bill Heyman, director of lender activities for the Federal Housing Administration. "A number of lenders have been referred to the Mortgagee Review Board for advertising offenses."
He said lenders ought to keep tabs on what...