C.F.R. » Title 12 » CHAPTER X—CONSUMER FINANCIAL PROTECTION BUREAU › PART 1015—MORTGAGE ASSISTANCE RELIEF SERVICES (REGULATION O)

12 C.F.R. § 1015.4

Disclosures required in commercial communications

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It is a violation of this rule for any mortgage assistance relief service provider to engage in the following conduct:

(a) Disclosures in All General Commercial Communications—Failing to place the following statements in every general commercial communication for any mortgage assistance relief service:

(1) “(Name of company) is not associated with the government, and our service is not approved by the government or your lender.”

(2) In cases where the mortgage assistance relief service provider has represented, expressly or by implication, that consumers will receive any service or result set forth in paragraphs (2) through (6) of the definition of Mortgage Assistance Relief Service in § 1015.2, “Even if you accept this offer and use our service, your lender may not agree to change your loan.”

(3) The disclosures required by this paragraph must be made in a clear and prominent manner, and—

(i) In textual communications the disclosures must appear together and be preceded by the heading “IMPORTANT NOTICE,” which must be in bold face font that is two point-type larger than the font size of the required disclosures; and

(ii) In communications disseminated orally or through audible means, wholly or in part, the audio component of the required disclosures must be preceded by the statement “Before using this service, consider the following information.”

(b) Disclosures in All Consumer-Specific Commercial Communications—Failing to disclose the following information in every consumer-specific commercial communication for any mortgage assistance relief service:

(1) “You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us (insert amount or method for calculating the amount) for our services.” For the purposes of this paragraph (b)(1), the amount “you will have to pay” shall consist of the total amount the consumer must pay to purchase, receive, and use all of the mortgage assistance relief services that are the subject of the sales offer, including, but not limited to, all fees and charges.

(2) “(Name of company) is not associated with the government, and our service is not approved by the government or your lender.”

(3) In cases where the mortgage assistance relief service provider has represented, expressly or by implication, that consumers will receive any service or result set forth in paragraphs (2) through (6) of the definition of Mortgage Assistance Relief Service in § 1015.2, “Even if you accept this offer and use our service, your lender may not agree to change your loan.”

(4) The disclosures required by this paragraph must be made in a clear and prominent manner, and—

(i) In textual communications the disclosures must appear together and be preceded by the heading “IMPORTANT NOTICE,” which must be in bold face font that is two point-type larger than the font size of the required disclosures; and

(ii) In communications disseminated orally or through audible means, wholly or in part, the audio component of the required disclosures must be preceded by the statement “Before using this service, consider the following information” and, in telephone communications, must be made at the beginning of the call.

(c) Disclosures in All General Commercial Communications, Consumer-Specific Commercial Communications, and Other Communications—In cases where the mortgage assistance relief service provider has represented, expressly or by implication, in connection with the advertising, marketing, promotion, offering for sale, sale, or performance of any mortgage assistance relief service, that the consumer should temporarily or permanently discontinue payments, in whole or in part, on a dwelling loan, failing to disclose, clearly and prominently, and in close proximity to any such representation that “If you stop paying your mortgage, you could lose your home and damage your credit rating.”

Notes of Decisions
Cited in 8 cases (3 in the last 5 years), 2014–2023 · leading case: Fed. Trade Comm'n v. Lanier Law, LLC, 194 F. Supp. 3d 1238 (M.D. Fla. 2016).
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Fed. Trade Comm'n v. Lanier Law, LLC, 194 F. Supp. 3d 1238 (M.D. Fla. 2016). · cites it 8× “3 (b)(1), and failed to make certain disclosures in their general communications, as well as in their consumer-specific communications, as required by 12 C.F.R. § 1015.4 . The Lanier and Fortress Defendants contend that the FTC is not entitled to summary judgment on these Counts…”
Fed. Trade Comm'n v. E.M.A. Nationwide, Inc., 767 F.3d 611 (6th Cir. 2014). “12 C.F.R. §§ 1015.4 (a)(1), (b)(1). There is clear, undisputed evidence in the record that Defendants made verbal representations in violation of the MARS Rule and that their written documents violated elements of the Rule as *635 well.”
Fed. Trade Comm'n v. Lake, 181 F. Supp. 3d 692 (C.D. Cal. 2016). “And third, they failed to make mandatory disclosures under 12 C.F.R. § 1015.4 . The FTC has presented substantial evidence proving that the HOPE Defendants violated the MARS Rule in the above ways.”
Consum. Fin. Prot. Bureau v. Mortg. Law Grp., LLP, 196 F. Supp. 3d 920 (W.D. Wis. 2016). · cites it 2× “2) The companies failed to make the disclosure required under 12 C.F.R. § 1015.4 (b)(1) in the manner required under § 1015.”
Consum. Fin. Prot. Bureau v. Mortg. Law Grp., LLP, 366 F. Supp. 3d 1039 (W.D. Wis. 2018). · cites it 2× “The companies failed to make the disclosure required under 12 C.F.R. § 1015.4 (b)(1) in the manner required under § 1015.”
In Re Dennis Edward Lake (C.D. Cal. 2022). “-4- Case 8:22-cv-00388-CJC Document 26 Filed 12/12/22 Page 5 of 15 Page ID #:1077 1 (3) failing to make mandatory disclosures under 12 C.F.R. § 1015.4 . Id. at 699 . The 2 Court “easily” found that Lake substantially assisted the HOPE Defendants in their 3 violations.”
McClain v. Wells Fargo Bank, N.A., Wells Fargo Home Mortg. (D. Maryland 2023). “, and 12 C.F.R. § 1015.4 (c) (“Regulation O”), which governs disclosures in commercial communications by mortgage assistance relief service providers.”
Fed. Trade Comm'n v. Lake (Bankr. C.D. Cal. 2021). “Proof of the first element, in turn, requires proof that (a) a service provider 24 received an advance fee, (b) such person made material misrepresentations to their 25 clients in violation of 12 C.”
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