| The Department of Housing and Urban Development has issued requirements that impact the use of government logos when advertising Federal Housing Administration programs.
The requirements, which were outlined in Mortgagee Letter 2011-17, become effective on May 15. Approved FHA mortgagees can discretely display one of two official “FHA Approved Lending Institution” logos. But the logos must “ be accompanied by a conspicuous disclaimer that clearly informs the public that the mortgagee authoring the device is not acting on behalf of or at the direction of HUD/FHA or the federal government,” the letter stated. “The disclaimer should be prominently displayed in a location proximate to where the FHA Approved Lending Institution logo(s) is displayed.”No modification of the logos is allowed. In addition, mortgagees are not allowed to display the HUD seal. HUD said that any advertisements must emphasize the mortgagee and not FHA or HUD. They must also be written in a manner that ensures the reader is clear that the mortgagee — and not HUD — wrote the ad. Mortgagees are strictly prohibited from displaying the approved mortgagee logo in a manner that makes the ad appear to be a government form or endorsed by the government.
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official FHA mortgagee approved logos
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Mortgage companies that are not approved as an FHA mortgagee cannot use the logos. Also prohibited from using it are formerly approved third-party originators and loan correspondents.
HUD went on to say that mortgagees cannot imply that their services come directly from HUD or FHA.
“The use of the words ‘federal,’ ‘government,’ ‘national,’ ‘U.S. Department of Housing and Urban Development,’ ‘Federal Housing Administration,’ and/or the letters ‘HUD’ or ‘FHA’ either alone or with other words or letters, by an FHA-approved mortgagee, non-approved mortgagee or third party originator in a manner that falsely represents that the mortgagee’s business services or products originate from HUD, FHA, the government of the United States, or any federal, state or local government agency is strictly prohibited,” HUD stated.
Mortgagees are required to keep electronic or printed copies of advertisements that display the approved FHA mortgagee logo for at least two years and provide copies to HUD upon request.
Companies that violate the new requirements could face sanctions, civil money penalties or administrative actions.
