The Ethics of Ambiguity has a new banner ad. I thought the couple dancing in the moonlight on the rooftop was bad. Then there was the much improved version: two male cowboys dancing together. I wonder if they released that banner just on the coastal states and avoided the Midwest; Brokeback Mortgage! Right around the holidays a hideous arm tattoo ad showed up. Look what they’re up to today:[photopress:Lowermybills1.jpg,thumb,alignright]
Is this ad predatory?  A $510,000 mortgage for as low as $1698 per month. That sure sounds like an interest only, pay-option, adjustable rate mortgage with the potential for negative am.  Fully amortized payments would probably be around $3,000 depending on the interest rate.  When you click through, the fine print explains it all. I’m comforted knowing they used Arial 9 point font instead of something much smaller.

Here’s Section 226.24 (which addresses advertising) of Regulation Z in our Federal Truth in Lending law, which is part of the Federal Consumer Protection Act.

In banner ads, why isn’t the annual percentage rate (APR) shown along side of the payment, along with a notice that the interest rate may (well, WILL) increase upon consummation of the loan?   At least some institutional banner ads show an *asterisk and offer the phrase “terms and conditions apply.