An online advertisement from a mortgage brokerage states: 'Get Approved in 2 Minutes! No Credit Check Required!' A potential client with poor credit is drawn to this. What is the mortgage agent's responsibility if this advertisement is misleading, and the client subsequently applies?

Question: An online advertisement from a mortgage brokerage states: 'Get Approved in 2 Minutes! No Credit Check Required!' A potential client with poor credit is drawn to this. What is the mortgage agent's responsibility if this advertisement is misleading, and the client subsequently applies?

Answer options:

• The agent must proceed with the application as advertised, even if it means circumventing standard credit checks. ✅ The agent must clarify the actual requirements for approval and perform a credit check, explaining that the advertisement was general marketing.
• The agent should inform the client that the advertisement is from a different branch of the brokerage and does not apply to them.
• The agent is not responsible for the brokerage's marketing, only for the advice given directly to the client.

Correct answer: The agent must clarify the actual requirements for approval and perform a credit check, explaining that the advertisement was general marketing.

Explanation: Mortgage agents and their brokerages are responsible for ensuring all advertising is truthful and not misleading. The agent must correct any misunderstandings caused by misleading advertising and adhere to actual lending requirements, as per professional standards and consumer protection laws.