• Mortgage advertising must meet legal requirements.beautiful home image by Stephen VanHorn from Fotolia.com
  
  Mortgage fliers and handouts are created to give explicit information about particular mortgage programs to a targeted audience with a need to know what is being conveyed. Mortgage loan agents spend much time developing informational fliers to teach real estate agents, property investors and prospective home-buyers how loan programs work, guideline changes, industry news or interest rate changes. These handouts and fliers are a helpful way for loan agents to keep business partners informed, and to keep their name in front of their audience on a consistent basis. Regulation Z (government regulatory law) has some rules about what needs to be included.
  
  

Adjustable Rates Disclosed

• If a mortgage program is not a fixed rate for the entire loan term, the verbiage will need to state it is an adjustable rate mortgage and when the adjustments begin. There are adjustable rate programs which freeze for a period of time prior to beginning their adjustable period. The time of first change, frequency of those changes and limits to those adjustments must be spelled out.
  
  

Disclosure of APR

• If any mortgage flier advertises an interest rate, it must also show the annual percentage rate (APR) which includes certain costs involved for a borrower to get that interest rate. These costs include origination fee, any other broker fee, any discount points, processing fee, tax service fee, underwriting fee, flood certification fee and daily interest from the date of the closing through the last day of the month. An example can be shown as an estimate. APR is the yearly cost of these charges and is expressed as an interest rate.
  
  

Monthly Payments

• If the flier or information shows a monthly payment, it must also state that it does not include monthly mortgage insurance (if applicable), property taxes or homeowners insurance.
  
  

State Licensing

• The flier or handout being used to convey mortgage information must display the mortgage company name, location and how it is licensed. For example,
  
  XYZ Mortgage Corporation, 555 Government Street, Anytown, FL 32502. Florida Correspondent Lender and Broker Licensee.