Statements in advertising that may lead consumers to inaccurately assume a mortgage product is endorsed by the government violate which law?

The law that addresses misleading statements in advertising, particularly those that may lead consumers to inaccurately assume a mortgage product is endorsed by the government, is Regulation Z. Regulation Z is part of the Truth in Lending Act and aims to protect consumers by promoting informed use of consumer credit. It requires clear and accurate disclosures of the terms and costs of credit, helping to prevent misleading advertising that could influence consumers' decision-making.

In the context of mortgage advertising, misleading claims about government endorsements can create a false sense of security for borrowers, potentially leading them into financial obligations they might not fully understand. Regulation Z seeks to ensure that advertisements are not deceptive, thereby fostering transparency and fairness in lending practices.