By the Division of Banks

Advertising Material

Advertising of consumer loan products is governed by Regulation 209 CMR 32.00 (the Truth-In-Lending regulation). Pursuant to 209 CMR 32.24(3)(a) if any of the following triggering terms is used in an advertisement, the creditor must include certain other terms in the advertisement. The use of either the amount or percentage of any down payment, the number of payments or period of repayment, the amount of any payment or the amount of any finance charge would require the creditor to also disclose the following terms in the advertisement: 1) the amount or percentage of down payment; and 2) the terms of repayment and the annual percentage rate, using that term; and, if the rate may be increased after consummation. A creditor may meet the requirements of the additional disclosures by providing an example of one or more typical extensions of credit with a statement of all terms applicable to each, pursuant to 209 CMR 32.24 fn. 49. It is the position of the Division of Banks that if a licensed mortgage lender's and mortgage broker's advertisement includes the amount of each monthly payment under the loan, the licensee is required to disclose the additional terms required by 209 CMR 32.24. However, a licensee may comply with the requirement by including an example of a typical extension of credit which includes all applicable terms as provided by 209 CMR 32.24 n. 49. Advertisements must also include the type and license number(s) of the licensee as required by 209 CMR 42.00 and 940 CMR 8.00.