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Advertising Policy

Advertising Policy:

It is the policy of Canopy Mortgage to comply with the multitude of federal and state regulatory requirements that are relevant when advertising any mortgage related product or service including all of the services offered by Canopy Mortgage . Corporate approval must be obtained before any form of marketing and/or advertisement may be distributed and/or displayed.

Advertising Definition:

“Advertisement” is defined as a commercial message in any medium that promotes, directly or indirectly, a mortgage credit transaction or service. Examples include but are not limited to

  • Messages in a newspaper, magazine, leaflet, promotional flyer, phonebook or catalog;
  • Announcements on radio, satellite, television, podcast, social media and internet sites or any other public accessed systems;
  • Direct printed mail, electronic mail literature or other printed materials including interior, exterior sign, billboards, benches, bus and car wraps;
  • Messages displayed on computer monitors/screens in a branch lobby or elsewhere; and Business cards and email signatures

Summary of Applicable Federal Regulations:

  • The Equal Credit Opportunity Act (“ECOA”) prohibits discrimination in granting credit on the basis of race, color, religion, national origin, sex, familial status, age, because all or part of the applicant’s income derives from any public assistance program, or because the applicant has in good faith exercised any right under the federal Consumers Protection Act.

Advertisements must not discourage potential applicants on a prohibited basis.

  • The Fair Housing Act regulates advertising and marketing involving the sale, rental or financing of any dwelling. The Fair Housing Act applies to residential, real estate-related transactions, including the origination of mortgage loans. In accordance with the Fair Housing Act, advertisements must not indicate any preference, limitation, or discrimination because of race, religion, color, sex, handicap, familial status (single, married, with child or not) or national origin. The display of fair housing and equal opportunity signs and logos are required in offices and on stationery and documents.
  • The Federal Trade Commission Act and Mortgage Acts and Practices -MAPS Rule

prohibits unfair or deceptive acts or practices and any misrepresentation in any commercial communication regarding any term of any mortgage credit product and imposes minimum record keeping requirements.

  • Real Estate Settlement Procedures Act prohibits the payment of a fee or any “thing of value” for the referral of business related to a real estate transaction. Therefore, a person or entity may not pay the advertising expenses for another person or entity that is in a position to refer business to that person or entity. o NOTE: Gifts to a Realtor could be perceived as providing a “thing of value” to someone in a position to refer business to us, therefore it is NOT allowed.
  • Truth in Lending Act requires companies to provide certain clear and conspicuous disclosures in every advertisement intended to aid, promote or assist, directly or indirectly,

any consumer credit product, and to the extent that an advertisement mentions specific credit terms, it may state only those terms that the creditor is actually prepared to offer.

General Requirements

  • Accuracy and Clarity: The contents of advertisements may not be deceptive, misleading or vague. The content must be accurate, consistent, truthful and clear to the average borrower (including the use of a legible font with appropriate font size).
  • Advertisements that contain a rate must show that rate as an annual percentage rate (APR) expressed in 3 decimal places (x.xxx) and must use the term “annual percentage rate” or “APR.” The “Note Rate” may be stated along with the APR, provided it is no more conspicuous than the APR – meaning the APR should be at least the same type size and in the same font as the note rate.
  • “Triggering” Terms are certain loan terms in an advertisement that trigger a legal requirement to disclose certain other terms of the loan.

These are:

  • The term of the loan or the number of payments;
  • The amount of any payment;
  • The amount of any finance charge;
  • The amount or percentage of down payment (applies only when a creditor is financing something that it is selling).
  • Advertisements that contain any one or more triggering term must also state the following terms:
  • The amount or percentage of down payment.
  • The terms of repayment, which must reflect the amount, number and timing of payments over the term of the loan, including any balloon payment.
  • The “annual percentage rate,” using that term, and, if the rate may be increased after consummation, that fact.

ARM

In addition to the APR and down payment, an advertisement for an ARM product, that includes a triggering term, must also state:

  1. The number and time period of each series of payments, and the amounts of each of those payments.
  2. “This is a variable rate loan program; the annual percentage rate is subject to increase after consummation.’
  3. The fact that the payments do not include amounts for taxes and insurance premiums including mortgage insurance premiums, and that the actual payment obligation will be greater (if you do not disclose estimates for taxes, insurance and mortgage insurance).

The disclosure must be clear, conspicuous (close proximity) and legible. Keep in mind that if the ad already includes any of the required verbiage, it does not have to be duplicated in the disclosure.

Below is an example of an acceptable disclosure for an ARM advertisement:

5/1 ARM Example:

This is a variable rate loan program, rates and monthly payment amounts are subject to increase after consummation. Based on the initial rate of X.XXX%, as of XX/XX/2011 and the current index and margin, a real estate transaction with a purchase price of $XXX,XXX, down payment of XX% and loan amount of $XXX,XXX would have 60 initial monthly principal and interest payments at $X,XXX.XX, followed by 12 monthly principal and interest payments at $X,XXX and 288 monthly principal and interest payments at $X,XXX.XX. Payment amounts do not include taxes, insurance or mortgage insurance premiums which, if applicable, will result in a greater payment obligation.

FIXED

In addition to the APR and down payment, the advertisement must state the terms of repayment, which reflect the repayment obligations over the full term of the loan, including any balloon payment.

Keep in mind that if the ad already includes any of the required verbiage, it does not have to be duplicated in the disclosure. The disclosure must be clear, conspicuous (close proximity) and legible.

Below are examples of acceptable disclosures for a Fixed Rate and Fixed Rate with Balloon Payment advertisement:

Fixed Rate Example:

Based on the rate of X.XXX%, as of XX/XX/2011, a real estate transaction with a purchase price of $XXX,XXX, down payment of XX% and loan amount of $XXX,XXX would have 360 monthly principal and interest payments at $X,XXX.XX. Payment amounts do not include taxes, insurance or mortgage insurance premiums which, if applicable, will result in a greater payment obligation.

Advertising Disclaimers:

All residential financing advertisements must contain the Equal Housing Lender logo, statement or slogan. The logo or statement indicates to the public that Canopy Mortgage  provides financing to all persons regardless of race, color, religion, sex, handicap, familial status, national origin or sexual preference. The logo must be large enough for the consumer to read the words

“Equal Housing Lender”

Oral advertising should contain in its spoken text that the company is an “Equal Housing Lender.”

  • Advertisements that state one or more Loan Programs (FHA, VA, Rural Housing, etc.) must also state:

“All loans subject to credit and property approval.”

  • Advertisements that state a Rate/APR must also contain:

“[The effective date]” and “rates are subject to change without notice.”

  • Advertisements that include a tax deductible note must also state: “Consult a tax advisor”
  • Advertisements that contain a Calculator must also state:

“Interactive calculators are self-help tools. All examples are hypothetical and are for illustrative purposes only.”

  • Advertisements that include another entity’s name must include the below disclaimer in the same font and be italicized.

“Canopy Mortgage is not sponsored by, affiliated with or acting on behalf of [COMPANY

NAME].”

  • Advertisements that include a Prize, Drawing or Give Away must also include, at minimum:
    1. The name and address of the sponsor of the promotion;
    2. An accurate description of each prize;
    3. The minimum number of each prize,
    4. The retail value of each prize in this form “verifiable retail value: $…” in the same size, boldness, type as the prize and in immediate proximity to each place the prize appears; 5. A statement of the odds of winning a prize;
    5. The restrictions, qualifications or limitations on eligibility, which must be disclosed on the offer in immediate proximity on the same page with the first listing of the prize in type at least as large as the typeface used in the standard text of the offer or, in place thereof, the following statement printed in direct proximity to the prize or prizes awarded in type at least as large as the typeface used in the standard text of the offer: “Details and qualifications for participation in this promotion may apply.” This statement must be followed by a disclosure, in the same size type as the statement, indicating where in the offer the restrictions may be found. The restrictions must be printed in type at least as large as the typeface used in the standard text of the offer. Examples of restrictions include:
      1. Effective and Expiration dates;
      2. Limit of one entry per household or one entry per person;
      3. Offer not applicable to [describe exceptions];
      4. Offer void where prohibited
    6. The geographic area in which the contest is to be conducted (if applicable).
    7. Any requirement or invitation to view, hear, or attend a sales presentation in order to claim a prize, the approximate length of the presentation and a description of the service that is the subject of the presentation;
    8. Any requirement to pay shipping or handling fees or any other charges to obtain or use a prize along with the following statement in immediate proximity to each place the prize appears and must be in not less than 10-point boldface type: “YOU MUST PAY $…. IN ORDER TO RECEIVE OR USE THIS ITEM.”

NMLS Unique Identifiers and Business Identity:

  • In accordance with state and federal guidelines, all communication that is viewed by the public must contain the following information:

Solicitations and Advertisements:

  • Corporate name/logo or authorized DBA name/logo
  • Corporate NMLS # immediately followed by (nmlsconsumeraccess.org) or include hyperlink to NMLS Consumer Access webpage
  • Corporate address or licensed branch office address
  • Corporate or licensed branch phone number

If the names of one or more loan originators are stated in the solicitation or advertisement, it must also contain:

  • Name of loan originator(s) as shown on file with the NMLS
  • Title(s) within company Personal NMLS#(s)

Business cards and e-mail signatures requirements:

  • Name of employee (loan originator name must be your registered name on NMLS)
  • Title within company
  • Personal NMLS# (if applicable)
  • Corporate NMLS#
  • Licensed Branch Phone Number
  • Licensed Branch Office Address

As such, the business card and email signature templates must be used and adhered to, without exception by all employees of Canopy Mortgage and its entities.

Joint Advertising and RESPA:

  • Canopy Mortgage may not pay the advertising for another entity that is in a position to refer business to us. For example,

Our company or a loan originator cannot pay for an advertisement of a realtor or builder. If the company/loan originator participates in a Joint Advertisement, then Canopy Mortgage  may only pay for the portion of the advertisement dedicated to promoting the company.

Use of Copyrighted materials:

  • Written approval from the original author and/or publisher must be obtained prior to releasing, to the public or to business professionals, any advertising that includes language taken, in all or in part, from copyrighted materials.

Use of Endorsements and/or Testimonials:

  • Endorsements must be from an actual, bona fide customer having no material connection with Canopy Mortgage;
  • Endorsements must always reflect the honest opinions, findings beliefs, or experience of the endorser. The endorsement does not need to be the exact words of the endorser. However, the endorsement may neither be presented out of context nor reworded so as to distort in any way the endorser’s opinion or experience with Canopy Mortgage.

Avoidance:

  • Avoid making a misrepresentation about a federal, state or local government endorsement. False representations that the content of an ad is endorsed by or the services or products offered are originating from any federal, state or local government is strictly prohibited. This would include the use of Federal or State Seals and/or Logos.
  • Avoid Scare Tactics:

Avoid the use of scare tactics in all advertisements. Any verbiage containing the company’s credit decision, potential delinquencies on future credit, foreclosure or loss of home are extremely sensitive topics for consumers.

  • Avoid words, Symbols, models, pictures or other forms of communication that express, imply or suggest a discriminatory preference or exclusion. These include but are not limited to:
    1. Pictorials or images that do not represent a mixture of race, gender, age, marital status, etc. For example, all white (or absence of minority) or all married models. Pictorials or images should be representative of society;
    2. References to race, religion, color, national origin, sex, familial status or handicap. For example, use the term “business person” instead of “businessman” and “spouse” instead of “wife;”
    3. Words stating or implying that real estate financing is available to only males or only females;
    4. Words referencing disabilities (except the inclusion of information about the accessibility of the housing).
  • Avoid Terms that would suggest the company will assist in managing the consumer’s debt. Canopy Mortgage is not a licensed debt counselor. Additionally, ads that make misleading claims of debt elimination, such as claiming that debt will be eliminated, waived or forgiven, when the product merely replaces one debt obligation with another is strictly prohibited.
  • Avoid terms that would suggest the company will assist in credit counseling.

Canopy Mortgage is not a licensed credit counselor. Ads with verbiage that may be considered credit counseling or advice is strictly prohibited.

  • Avoid terms that would suggest “Free” Third-Party Services.

Lenders and servicers may not advertise that third-party services are free when the lender has paid for such services.  Advertising using the term “free,” or any other similar term or phrase that implies there is no cost to the applicant is deceptive because the lender can recover the cost of the purportedly “free” item through the negotiation process.

  • Avoid Using Terms That May Have Legal Significance:

Avoid use of words or phrases that may have legal significance such as “guaranteed” or “unconditional”. If use of such terms cannot be avoided, verify with the compliance department that the possible legal consequences are acceptable. Another example would be advertising rates described as “lowest,” or “best;”

  • Avoid any misrepresentation that may be considered unfair or deceptive acts or practices, including but not limited to:
  1. Misrepresentation of the existence, nature, or amount of fees or costs to the consumer, including but not limited to misrepresentations that no fees are charged, for example: It is a violation to advertise or otherwise represent the availability of “no closing costs” loans without accompanying disclaimers or other qualifying information regarding consumers’ eligibility for such loans, unless the financial institution does in fact make such loans available to all consumers who are otherwise eligible for a mortgage loan.
  2. Misrepresentation of the terms, amounts, payments, or other requirements relating to taxes or insurance, including misrepresentations about whether separate payment of taxes or insurance is required, for example: It is a deceptive practice and a violation to not clearly disclose whether the monthly payment advertised includes tax and insurance escrows.
  3. Misrepresentation of the variability of interest, payments, or other terms, including misrepresentations using the word ‘‘fixed,’’ for example: It is a violation to falsely advertise fixed payments and/or rates when in fact, one or the other, or neither are fixed for the term of the loan.
  4. Misrepresentation of comparisons between rates or payments that will be available for a period less than the full term of the mortgage loan product and any actual or hypothetical rate or payment, for example: It is a violation to misrepresent the possible savings from an ARM loan payment in a comparison with a fixed rate loan payment.
  5. Misrepresentation of the amount of cash or credit available to the consumer in connection with the mortgage credit product, including misrepresentations that the consumer will receive a certain amount of cash/credit as part of a mortgage transaction, for example: It is a violation to misrepresent the amount of cash the consumer will receive out of the loan proceeds to pay off his or her creditors or to pay for needed home repairs.
  6. Misrepresentations of the existence of any minimum or required payments, including but not limited to misrepresentations about any payments or that no payments are required in a reverse mortgage or other mortgage product, for example: It is a violation to include statements such as “income for life,” “you’ll never owe more than the value of your home,” “no payments ever,” and “no risk” in an advertisement for a reverse mortgage product.
  7. Misrepresentations of the potential for default, including misrepresentations of circumstances under which the consumer could default for nonpayment of taxes, insurance, or maintenance, or for failure to meet other obligations, for example: It is a violation to omit or misrepresent, in a reverse mortgage ad, that there are actions the borrower must take to prevent the loan from going into default, including the need to continue to pay taxes and insurance on the property and to keep the property from falling into unreasonable disrepair.
  8. The effectiveness of the mortgage credit product in helping the consumer resolve difficulties in paying debts, including misrepresentations that any mortgage product can reduce, eliminate, or restructure debt or result in a waiver or forgiveness, in whole or in part, of the consumer’s existing obligation, for example: It is a violation to not accurately illustrate the potential monthly savings of consolidating existing debts. Based on generally available interest rates and repayment terms on credit card balances and other loans, consumers may save far less than the illustrated savings, or pay more per month following the original expiration date of the existing debt.
  9. The right of the consumer to reside in the dwelling that is the subject of the mortgage product, or the duration of such right, including misrepresentations concerning how long or under what conditions a consumer with a reverse mortgage can stay in the dwelling, for example: It is a violation to misrepresent the requirements for a reverse mortgage borrower to reside in the home and retain title in his/her name, and/or misrepresent that a reverse mortgage borrower may unconditionally reside in the home.
  10. The consumer’s ability or likelihood to obtain any mortgage credit product or term, including misrepresentations concerning whether the consumer has been preapproved or guaranteed for any such product or term, for example: It is a violation to falsely lead a consumer to believe he/she/they are preapproved to receive credit, or to engage in prescreening a consumer for credit without adhering to the requirements of the FCRA.

The National Do Not Call Registry

  • The Federal Trade Commission (FTC) amended the Telemarketing Sales Rule (TSR) to give consumers a choice about whether they want to receive most telemarketing calls. As of October 1, 2003, it became illegal for most telemarketers or sellers to call a number listed on the National Do Not Call Registry.

Who is covered by the National Do Not Call Registry?

  • The National Do Not Call Registry applies to any plan, program, or campaign to sell goods or services through interstate phone calls. This includes telemarketers who solicit consumers, often on behalf of third party sellers. It also includes sellers who provide, offer to provide, or arrange to provide goods or services to consumers in exchange for payment.

How does this affect Canopy Mortgage?

  • Canopy may call a consumer for up to three months after the consumer makes an

inquiry or submits an application to the company.

  • If a consumer has given Canopy written permission, Canopy may call even if the consumer’s number is on the National Do Not Call Registry.
  • Canopy may contact the consumer up to 18 months after the consumer’s last purchase, delivery, or payment – even if the consumer’s number is on the National Do

Not Call Registry

If a consumer asks Canopy not to call, Canopy may not call, even if there is an established business relationship. Therefore, regardless of whether the consumer’s number is on the registry – Canopy must add the consumer’s name to our internal do not call list.

Penalties for Violations may include but are not limited to:

  1. The Federal Penalty for each violation is $16,000. If a call is made outside acceptable hours to a number on the Do Not Call List this would be 2 violations and the fine would be $32,000.
  2. Individual states can also impose fines for non-compliance of up to $25,000 per violation.
  3. Civil penalties include a $10,000 fine for each violation.

Advertising Directed to Real Estate Professionals:

Advertisements directed only to real estate or mortgage professionals must comply with the general requirements listed in the previous section of this policy, except that triggering term and APR disclosures may be omitted providing the following statement is included in a conspicuous and clear manner: “For use by real estate or mortgage professionals only. Not intended for distribution to consumers.”

Summary of Additional State Regulations:

All applicable state licenses including company, DBA, branch and loan originator licenses must be active and in good standing before any advertising may be distributed within that state.  Additionally, there are state specific advertising regulations that must be adhered to, see below:

  • Arizona

All advertisements must contain Arizona issued license number.

  • California

All advertisements must include the following statement: “Licensed by the Department of

Business Oversight under the California Residential Mortgage Lending Act.”

  • Colorado

All advertisements must have at least 1 responsible party who is accountable. The responsible party must be an individual person or a mortgage company. In addition, the advertisement must contain the following, each of which must be clearly and conspicuously included in the advertisement:

(1) the responsible party must be an individual person or a mortgage company. In addition, the responsible

party must include their registration number that is approved on the Nationwide Mortgage Licensing System and Registry (NMLS) and must be clearly and conspicuously included in the advertisement;

(2) the mortgage company name;

(3) the business phone number of the responsible party; and

(4) the statement “regulated by the Division of Real Estate”;

The above requirements set forth in item (B), subsections 1 through 4, does not apply to:

(1) any advertisement which indirectly promotes a credit transaction and which contains only the name of the mortgage company, the name and title of the mortgage loan originator, the contact information for the mortgage company or the mortgage loan originator, a mortgage company logo, or any license or registration numbers, such as the inscription on a coffee mug, pen, pencil, youth league jersey, sign, business card, or other promotional item; or

(2) any rate sheet, pricing sheet, or similar proprietary information provided to real estate brokers, builders, and other commercial entities that is not intended for distribution to consumers.

  • Florida

This state does not contain provisions regarding other prohibited acts in advertisements.

  • Georgia

All advertisements disseminated in Georgia by a licensee in any media must contain the words “Georgia Residential Mortgage Licensee” and Georgia Residential Mortgage Licensee #.

  • Idaho

This state does not contain provisions regarding other prohibited acts in advertisements.

  • Illinois

All Advertisements must contain the words “Illinois Residential Mortgage Licensee.”

  • Indiana

This state does not contain provisions regarding other prohibited acts in advertisements.

  • Nevada

An internet link on a mortgage banker’s website that links the user to another commercial enterprises’ website must provide notification that the user is leaving the mortgage banker’s website.

  • New Mexico

This state does not contain provisions regarding other prohibited acts in advertisements.

  • Ohio

All advertisements must contain our Ohio certificate of registration number.

All internet advertising shall comply with division (B) of this rule by either placing the name, registration number and office address on every viewable web page of the website within the registrant’s ownership and or control, or place the name, registration number and office address on the home page and place a link to the home page on each additional web page. For purposes of this rule, a web page is one that may or may not scroll beyond the borders of the screen.

  • Oregon

All advertisements must contain Oregon issued license number.

Advertisements, solicitations, or promotional materials from a particular mortgage loan originator or a group of mortgage loan originators must list the unique identifier of each mortgage loan originator.

The phrase “wholesale rates” is prohibited when the advertising is accessible by the public.

  • Tennessee

This state does not contain provisions regarding other prohibited acts in advertisements.

  • Texas

All loan officer advertisements must contain the following “residential mortgage loan originator”

Website Disclaimer:

Figure: 7 TAC §81.200(c)

“CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”

  • Utah

A mortgage loan originator may not advertise the sale of real estate by use of any advertising medium, unless the loan originator is acting under a valid real estate license and not under a mortgage license.

However, a loan originator is not prohibited from:

  1. Advertising mortgage loan services in cooperation with a “for sale by owner” seller where the advertising clearly identifies:
    1. the owner’s contact information;
    2. the owner’s role;
    3. the loan originator’s contact information; and
    4. the specific mortgage-related services that the mortgage loan originator may provide to a buyer; or
  2. Advertising in conjunction with a real estate brokerage where the advertising clearly identifies:
    1. the contact information for the brokerage;
    2. the role of the brokerage;
    3. the loan originator’s contact information; and
    4. The specific mortgage-related services that the loan originator may provide to a buyer.

A targeted solicitation, if offered in writing, shall include a clear and conspicuous statement in bold type on the front page of the document containing:

  • the name, address, and telephone number of the supplier offering the targeted solicitation; and
  • a statement indicating that the supplier offering the targeted solicitation is not sponsored by or affiliated with the financial institution that holds the account holder’s account.

If the targeted solicitation is offered orally, the supplier offering the targeted solicitation shall verbally communicate the statement described above.

A targeted solicitation is defined as any written or oral advertisement or solicitation for products or services that is addressed to an account holder, contains specific account information, is offered by a supplier that is not sponsored by or affiliated with the financial institution that holds the account holder’s account; and is not authorized by the financial institution that holds the account holder’s account.

Specific account information is defined as:

  1. a loan number;
  2. a loan amount; or
  3. any other specific account or loan information
  • Virginia

o    Advertising including pre-approvals or firm offers of credit must include in at least 14-point bold type that “This is not a Loan Approval” and clearly disclose the conditions and/or qualifications associated with such approval.

  • Washington

Advertising over the internet using a URL address that is not the licensed business name is acceptable provided that any URL address advertised:

  1. Takes the user directly to the licensee’s main or home web page; or 2. Is registered with our Corporate Licensing Coordinator.
  • Wisconsin

This state does not contain provisions regarding other prohibited acts in advertisements.

  • West Virginia

This state does not contain provisions regarding other prohibited acts in advertisements.

  • Wyoming

This state does not contain provisions regarding other prohibited acts in advertisements.

Websites:

  • Company Main Site: In addition to complying with the general and applicable state requirements listed in the previous sections of this policy, Canopy main website must also include:
    1. The company’s licensed name and NMLS unique identifier displayed clearly and conspicuously.
    2. When mortgage loan originators names are shown, their NMLS number must immediately follow their name.
  • Loan Originator Page: In addition to complying with the general and applicable state requirements listed in the previous sections of this policy, a Loan Originator’s page must also include:
    1. The company’s licensed name and NMLS unique identifier displayed clearly and conspicuously on every page.
    2. The loan originator’s NMLS number immediately following the loan originator’s name.
  • Branch Page
    1. Same requirements as Company Main Site.
  • DBA Page and/or Website
    1. Same requirements as Company Main Site; and
    2. DBA’s name must be immediately followed by “a division of Canopy Mortgage, LLC” and Corporate NMLS unique identifier.

Social Media:

Social Media means any facility for online publication and commentary, including without limitation blogs, wiki’s, social networking sites such as Facebook, LinkedIn, Twitter, Flickr, and YouTube.

  • Any internet page or use of social media to advertise the products or services offered by Canopy Mortgage or its employees must also adhere to all social media site’s policy, applicable sections of this chapter, any other internal advertising policies and all applicable state and federal regulations.
  • Any employee originating residential mortgage loans must include his/her unique NMLS number on their social media sites if the employee’s social media site reflects employed by Canopy Mortgage.
  • Follow the previously outlined sections as applicable during the normal review process.

Advertisement Review Procedure:

The following procedure must be followed to receive corporate approval prior to releasing any advertising to the public or to business professionals, including real estate agents and/or mortgage brokers:

  • Marketing Review (Already designed)
    1. Complete The Marketing Form found in the Marketing Directory on the Intranet.
    2. Form must be completed in detail in its entirety and your file must be uploaded. PDF or JPEG files only. No Publisher or Word docs.
    3. The Marketing Dept. will review the piece for adherence to Canopy Mortgage’s style guidelines (future document) and general design principles (future document).
    4. If changes are needed (or suggested), you will be sent an email with a link that will take you to a web page that will visually detail the areas that need change.
    5. After changes have been made, you will resubmit the corrected file to the Marketing Dept. by replying to the aforementioned email (Remember to attach the file)
    6. After approval, the marketing piece will be handed off to the Compliance Dept. for review and approval.
  • Marketing Request and Review (Design needed)
    1. Complete The Marketing Form found in the Marketing Directory on the Intranet.
    2. Form must be completed in detail in its entirety and your photo, if needed, must be uploaded. Photos will be deleted after each project.
    3. The Marketing Department will create the piece in approximately 3-5 business days based on the information provided in the Marketing Information Form.
    4. Once the piece is created, you will receive a link to view it online. Here you may review the piece for accuracy and to ensure the Marketing Dept. understood the desired message. Suggestions and critiques on the design of the piece are NOT encouraged.
    5. After approval, marketing piece will be handed off to the Compliance Dept. for review and approval.

Record Keeping:

  • Copies of all approved advertisements, scripts, training materials, and marketing materials shall

be retained by the compliance department in accordance with state and federal regulations.

Audit Review Procedures:

  • Periodically the Compliance Dept. will review and audit each website, social media site, blogs and the marketing library for compliance with the current laws and company policy. Any improvement or corrective action needed will be documented and reported to the executive team and the applicable branch manager, department manager, loan originator and/or employee. The applicable executive team member, branch manager, department manager, loan originator and/or employee will be responsible for addressing any concerns raised in the audit. Intended corrective action should be documented in a written response to the audit results. The response and corrective action must be done within a reasonable time. The Compliance Dept. will track responses and/or the corrective action undertaken to ensure that appropriate measures are taken.

Penalties for violations:

Penalties per violation include, but are not limited to:

  1. FHA – If the court finds that a discriminatory housing practice has occurred or is about to occur, the court may award actual and punitive damages and reasonable attorney’s fee and costs, and may grant as relief any permanent or temporary injunction, temporary restraining or other order enjoining the defendant from engaging in such practice or ordering such affirmative action as may be appropriate.
  2. ECOA – Any creditor who fails to comply with any requirement shall be liable to the aggrieved applicant for punitive damages up to $10,000, in addition to any actual damages.
  3. TILA – Whoever willfully and knowingly gives false or inaccurate information, fails to provide information which he is required to disclose or otherwise fails to comply with any TILA requirement could be found criminally liable and fined up to $5,000 or imprisoned up to one year or both.
  4. State(s) – Disciplinary actions include but are not limited to the imposing of sanctions, fines, penalties, license suspensions, cease and desist orders or any combination thereof, in addition to criminal convictions for first and subsequent violations.

Sources

Utah’s Targeting Solicitation blurb: https://le.utah.gov/~2020/bills/static/HB0113.html

NMLS Unique Identifiers and Business Identity:

nationwidelicensingsystem.org/about/pages/RequiredUseofNMLSID.aspx

Link

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