West Virginia Mortgage Law Practice Test

Publicly disseminating a deceptive advertisement under the Residential Mortgage Lender, Broker, and Servicer Act is considered what?

1. Acceptable if disclosed correctly

2. An unlawful and unfair trade practice

3. A minor offense with a warning

4. Permitted as long as it is not misleading

The correct answer is: Acceptable if disclosed correctly

In order to understand why option A is the correct answer, it is important to first understand what the Residential Mortgage Lender, Broker, and Servicer Act (RMLBSA) is. This act is designed to protect consumers from deceptive practices within the residential mortgage lending industry. This includes regulating the advertising of mortgage services to ensure that consumers are given accurate and truthful information. Option B is incorrect because disseminating a deceptive advertisement under the RMLBSA is not only considered an unlawful practice, but it is also deemed unfair to consumers. This is because it can mislead them into making financial decisions that are not in their best interest. Option C is incorrect because public dissemination of deceptive advertisements is not a minor offense. In fact, it is taken very seriously under the RMLBSA and can result in significant penalties. Option D is incorrect because the key factor in determining whether an advertisement is deceptive is whether or not it is misleading. Even if an advertisement is not technically false, if it has the potential to mislead consumers, it is considered deceptive and therefore, not permitted under the RMLBSA. In summary, option A is the correct answer because publicly disseminating a deceptive advertisement is only acceptable if it is disclosed correctly under the