A for-profit MLO who claims to be a counselor in an ad about loan modification would be in violation of what law?

A for-profit mortgage loan originator (MLO) who advertises themselves as a counselor in relation to loan modifications could be violating the Truth in Lending Act (TILA). This law mandates clear and truthful disclosures regarding the costs and terms of credit. In particular, it emphasizes that mortgage professionals should not mislead consumers regarding their qualifications, roles, or the services they offer.

By portraying themselves as counselors, which typically implies a fiduciary responsibility and objective advice, the MLO creates a conflict with the expectations set forth by TILA. This misrepresentation can impact consumers' understanding and decisions, as they might believe they are receiving impartial advice when, in fact, the MLO has a financial interest in the loan being modified.

The other laws listed address various elements of mortgage lending and consumer protection, but they do not specifically cover the misrepresentation of an MLO's role in advertising as TILA does. Therefore, this distinction makes TILA the most relevant law regarding the scenario presented.