MAP Rule (Regulation N)

Question 1

What is the MAP Rule?

Answer 1

A federal rule governing the advertising of mortgage products.

Question 2

What does it stand for?

Answer 2

Mortgage Acts and Practices Advertising Rule (Regulation N)

Question 3

What is a mortgage credit product?

Answer 3

A mortgage credit product is any form of credit that is secured by real property or a dwelling and that is offered or extended to a consumer primarily for personal, family, or household purposes

Question 4

According to the Map Rule what are prohibited misrepresentations with regards to a mortgage credit product?

Answer 4

• Misrepresentations regarding the interest rate charged, including whether or not any difference between the interest owed and interest paid is added to the loan amount
• Misrepresentations regarding the APR, simple annual rate, periodic rate, or any other rate
• Misrepresentations regarding the existence, nature, or amount of fees or costs to the consumer associated with the mortgage credit product, including but not limited to misrepresentations that no fees are charged
• Misrepresentations regarding the existence, costs, payment terms, or other terms associated with any additional product or feature that is or may be sold in conjunction with the mortgage credit product (e.g., credit insurance or credit disability insurance)
• Misrepresentations regarding whether separate payment of taxes and insurance is required and the extent to which payment for taxes or insurance is included in the loan payments, loan amount, or total due from the consumer
• Misrepresentations regarding any prepayment penalty
• Misrepresentations regarding the variability of interest, payments, or other terms of the mortgage credit product, including but not limited to the use of the word “fixed”
• Misleading comparisons related to rates and payments and the period during which each would be available
• Representing that a loan is fully amortizing if that is not the case
• Misleading statements regarding the amount of credit available to a borrower
• Misrepresentations regarding the existence, number, amount, or timing of any minimum or required payments (e.g., whether payments are required under a reverse mortgage or other mortgage credit product)
  1. The payment of property taxes and hazard insurance premiums are normally required under a reverse mortgage loan
• Misrepresentations regarding the potential for default (e.g., the circumstances under which the consumer could default for nonpayment of taxes, insurance, or other maintenance; failure to meet other obligations under the loan)
• Regarding reverse mortgages, misrepresentations concerning how long or under what conditions the borrower may continue to occupy the dwelling
• Misrepresentations regarding the effectiveness of a mortgage credit product in helping the consumer resolve difficulties in paying debts
• Misleading statements regarding a lender’s affiliation with a government entity or the consumer’s current mortgage lender or servicer, and
• Misrepresentations regarding the availability, nature, or substance of counseling services or any other expert advice offered to the consumer (e.g., the qualifications of those offering the services or advice)