Which of the following actions would be considered deceptive in mortgage advertising?

• A. Promoting low-interest rates
• B. Stating no down payment required
• C. Claiming immediate approval without qualifications
• D. Offering flexible loan terms without conditions

Answer: (C)

Claiming immediate approval without qualifications is considered deceptive in mortgage advertising because it implies that all applicants will receive approval regardless of their financial background or creditworthiness. This can mislead consumers into believing they are guaranteed a loan, which is not the case as lenders typically assess various factors such as credit score, income, and debt-to-income ratio before approval. By omitting any mention of the necessary qualifications, the advertisement creates a false sense of security, which is a violation of truth in advertising standards and regulations intended to protect consumers.

The other options, while potentially misleading in context, do not inherently imply a guarantee of approval without conditions. Promoting low-interest rates and stating no down payment required could be true given specific circumstances, although they may require further clarification. Offering flexible loan terms can also be genuine, but must be accompanied by specific conditions to avoid being misleading. Thus, immediate approval without qualifications stands out as a clear example of deceptive advertising.