West Virginia Mortgage Law Practice Test

Which of the following advertising practices would NOT violate the law?

1. Advertising products based on buyer's location

2. Advertising products based solely on credit score

3. Advertising products that are available to most qualified applicants

4. Advertising products selectively to preferred customers

The correct answer is: Advertising products based on buyer's location

The rationale for selecting the practice of advertising products based on a buyer's location is rooted in the guidelines for lawful advertising in the context of mortgage laws. This practice can be considered valid as it does not inherently discriminate against any group of people and complies with fair lending laws. It allows businesses to target potential customers who are local and likely to need mortgage services, assuming it is done within the bounds of non-discriminatory practices. In contrast, advertising products based solely on credit score could pose legal issues because it may be perceived as discriminatory to individuals with lower credit scores, which can disproportionately impact certain groups. Similarly, selectively advertising products to preferred customers could also be viewed as discriminatory if it excludes other applicants who might be equally qualified but do not fall into the preferred category. The practice of advertising products that are available to most qualified applicants is more straightforward, but it may still involve complexities regarding what constitutes 'qualification' and could lead to inadvertent discrimination if not handled transparently. Thus, focusing on buyer's location aligns with lawful advertising practices as it promotes access and equal opportunity without engaging in discriminatory behavior.