Deceptive claims in mortgage advertising harm consumers and create an unfair marketplace. To prevent this, the Federal Trade Commission (FTC) and CFPB enforce the Mortgage Acts and Practices – Advertising Rule, commonly known as the MAP Rule or Regulation N.
What is the MAP Rule?
The MAP Rule (Regulation N) is a federal regulation that prohibits any material misrepresentation in commercial communications regarding mortgage credit products. It ensures that mortgage lenders, brokers, and advertisers provide truthful information about interest rates, fees, and loan terms in all marketing materials.
Who must comply with Regulation N?
The MAP Rule applies to any entity under the FTC’s jurisdiction that advertises mortgage products, including:
- Mortgage lenders, brokers, and servicers
- Real estate agents and home builders
- Lead generators and rate aggregators
- Advertising agencies and commercial marketers
Note: Banks, thrifts, and federal credit unions generally fall outside the FTC’s specific MAP Rule jurisdiction but are subject to similar oversight by the CFPB.
Examples of deceptive claims under the MAP Rule
The rule identifies 19 specific categories of prohibited misrepresentations. Most violations involve misleading statements about:
- Costs & Fees: Misrepresenting the existence or amount of fees
- Taxes & Insurance: Misleading claims about requirements or payments
- Interest Rates: False claims about the variability of rates or “teaser” terms
- Loan Type: Misrepresenting the specific mortgage product (e.g., FHA vs. Conventional)
- Refinancing: Deceptive claims regarding the likelihood of a future modification
MAP Rule recordkeeping requirements
To ensure compliance, the MAP Rule mandates that firms retain specific records for 24 months from the date a communication was last used. This includes:
- Commercial Communications: Copies of all “materially different” ads, sales scripts, and social media posts
- Product Documentation: Documents evidencing the mortgage products available at the time of the ad
- Additional Services: Records of related products offered, such as credit insurance
Penalties for MAP Rule violations
Section 5 of the FTC Act generally prohibits advertisers from making false or misleading claims. The MAP Rule aligns with this legal principle and allows the appropriate enforcement authorities to seek appropriate relief, including civil penalties, against those who engage in deceptive mortgage advertising. In addition to the FTC, the Consumer Financial Protection Bureau (CFPB) and state law enforcement authorities also may bring enforcement actions for violations of the MAP Rule.
How Smarsh can help you meet Compliance with the MAP Rule
Smarsh offers an end-to-end platform of AI-powered compliance solutions designed to streamline your compliance processes, reduce manual workloads and ensure adherence to regulatory requirements. With Smarsh, you can:
- Capture every conversation. Archive communications across all your most important communications channels (email, messaging, voice, social, mobile) for complete visibility and compliance.
- Detect more real risk with AI. Use machine learning and customizable risk scenarios to surface suitability concerns, reduce false positives and flag misconduct faster.
- Customize and test supervision models. Build and refine risk detection logic with no-code tools like Scenario Builder and Scenario Evaluator.
- Scale with confidence. Trusted by global financial firms, Smarsh helps you meet regulatory expectations while managing growing communication volumes.