Which entity is responsible for monitoring compliance with advertising rules?

Which entity is responsible for monitoring compliance with advertising rules?

• A. HUD
• B. FHA
• C. FNMA
• D. FTC

Answer: (D)

Advertising rules are about consumer protection and truthful messaging. The Federal Trade Commission is the principal federal authority that ensures ads are honest, not misleading, and that any claims about rates, terms, or costs are supported. Lenders must present mortgage information clearly and avoid deceptive practices to comply with these standards. HUD, FHA, and FNMA focus on housing programs and loan origination or secondary markets, not on policing advertising claims. So, the entity that monitors compliance with advertising rules is the Federal Trade Commission.

Advertising rules are about consumer protection and truthful messaging. The Federal Trade Commission is the principal federal authority that ensures ads are honest, not misleading, and that any claims about rates, terms, or costs are supported. Lenders must present mortgage information clearly and avoid deceptive practices to comply with these standards. HUD, FHA, and FNMA focus on housing programs and loan origination or secondary markets, not on policing advertising claims. So, the entity that monitors compliance with advertising rules is the Federal Trade Commission.