The Alabama REALTORS® Legal Office has received reports about potentially misleading social media graphics being circulated by REALTORS® across the state.

As real estate professionals, REALTORS® should not post or share on social media graphics that show general mortgage comparisons like the image below. The graphic potentially violates federal regulations enforced by the Consumer Financial Protection Bureau (CFPB). For example, Regulation N (part 1014 of Chapter X in Title 12 CFR) prohibits misleading representations related to mortgages. The information in the graphic can be misleading by providing insufficient information related to the mortgages. The below mortgage rates hinge on a lot of missing data, like the APR, credit score of the applicant, term of loan, and notice of closing costs, to name a few. The best practice for real estate professionals is to avoid making these general comparisons or include sufficient specificity to prevent confusion.

Thank you to the brokers and agents who have reached out for assistance on this issue. Please continue to keep us informed of issues affecting your business and the industry by contacting us here so we can work together to uphold a high bar for the real estate profession.