Regulation “Z” has been around for a long time. The name is a little misleading, because it is not a single rule, but an entire section of code that stipulates required disclosures when offering credit to a borrowing consumer.
And although the law has been revised many times, (the latest changes went into effect July 1, 2010.) some of the very basic tenets that apply to real estate advertising still exist.
Simply stated, there are still certain “trigger” words, that when used in advertising, require complete disclosure of all of the terms of the loan. These trigger terms include:
If any of these words are used in any form of advertising, complete disclosure is required under law.
So I am usually more than a little irritated when I see a large sign in the front yard of a HUD home for sale that says “$100 DOWN” in huge letters. Why is the government immune from its own regulations?
It seems to me that the business of governing should be prosecuted without any hint of reproach. If the rule is indeed designed to protect consumers, then let’s protect them, fair and square.
Even if the government REALLY does need the money!
(Source of terms FDIC)
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Richard,
Are you talking about the same government that refused to accept electronic signatures (FHA) after they were approved by the same government?
Richard, I have always wondered this myself. Hud, Fannie HomePath & Freddie HomeSteps are all guility of violating Regulation Z. I guess it "pays" to be the one making the rules.
Richard, the rules have always been bent by the government they don't have to play by the consumer protection standards (or so they think)... agreed what is good for the (golden) goose should be good for the gander.
That's a good call but who do you call to make a complaint? It would fall on deaf ears.
HUD home already have such a convoluted sales system, it's too bad that the advertising is allowed to be misleading at the same time. It's not a good thing for consumers.
"I'm from the government and I'm here to help." LOL
Common Richard...You know that rules are to be broken! And we are being leaad by example! It's the old adage...Do as I say, not as I do!
Richard,
This has been a burr under my saddle for a very long time. The government will hold us to one standard and then do what they please. It appears that they are above the law.
and the government wonders why we the people do not trust them...
Richard ~ Gets me fired up when I see this. We will never get the answer from them because they are exempt right? LOL
Richard: I would love to throw out all career politicians and start from scratch. These guys protect themselves, and their entities first. Forget us.
Richard - interesting question. I do know that the government exempts itself from most of the laws and regulations that we mere mortals have to live by. However, what is the difference between this and a sign stating that a home is eligible for 100% USDA financing. This will take some more thought, don't think that it is a simple or black and white as it first appears. Perhaps if it said something like "Eligible for HUD $100 down program".
Excellent point Richard. But sadly as we are all witnessing, our powers that be continue to do whatever they wish.