1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? Submit a copy of the proposed regulation along with your responses to these five questions. The proposed regulation can be submitted as either a separate Word document (.doc) or Adobe file (.pdf). This means you will submit two attachments to the Week 2 Dropbox: (1) a Word doc with the questions and your answers and (2) a copy of the proposed regulation you used for this assignment. (10 points)
I chose the Federal Trade Commission’s Mortgage Acts and Practices – Advertising (16 CFR Part 321). They are responsible for monitoring deceptive or unfair practices. This also includes deceptive advertisements of any kind. This interests me because I recently received my real estate broker’s license. In order to purchase a property, most people will need to obtain a mortgage to do so. However, I feel that the lenders should only provide mortgages that are fair and only to those that qualify. Previous lending practices are part of the reason why the housing market crashed. People were receiving mortgages that they were not able to pay due to deceptive advertising and practices.
This regulation will have an impact on the real estate business because the ability to obtain mortgages is essentially one of the major factors in the decision to purchase a property. Without the ability to obtain and truly be able to afford a mortgage, people will not purchase.
2. Describe the proposal/change. (10 points)
The proposal is for “…additional protections and disclosure requirements for mortgage advertisements…” The proposal describes in detail what are considered deceptive practices. For example, a lender who does not include closing costs or loan fees in the loan amounts is considered to be misleading and deceptive. There are now certain record...