QUESTION
We had a Fair Housing Act examination recently by our state banking department and got hit with a citation for violations. This came as a real shock to us.
We have 30 days to fix the issues and also prove that we have done a thorough review of our advertising to look for potential Fair Housing violations. We only have one person in compliance – me! I have done a lot of research for this response. But this seems like an overwhelming task.
So, I’m turning to you for some guidance.
Are there some basic things I should be looking for in our advertising?
ANSWER
I recognize this may cause some pressure, but you’ll do fine as long as you undertake the review in a careful and procedural way. You need to produce a report that provides specimens of the advertisements (before and after revisions), the remedial actions taken with respect to those particular advertisements, and the advertising policies and procedures that your financial institution implements.
My firm does advertising compliance reviews all the time and, if you need assistance, please contact me HERE. I’ll have your advertisements reviewed immediately by competent subject matter experts.
Keep in mind, advertising compliance draws on numerous interlocking regulations, Acts, Best Practices, rules, disclosure mandates, and so forth. A small mistake can get magnified quickly into a litigious class action issue, let alone a federal or state administrative action. So, make it your business to review each advertisement before it is published. Seek appropriate compliance support if there is a scintilla of doubt or uncertainty.
As to a consideration of things to be on the look out for, I would put the following on the list. Though it is not comprehensive, I think it serves to set the tone for further reviews on your part.
- Advertisements must include the equal housing logo a statement that you are an equal housing lender. In printed advertising, the logo must be no smaller than:
- 1/2 page or larger ad (2 × 2 inches)
- 1/8 page up to 1/2 page ad (1 × 1 inch)
- 4 column inches to 1/8 page ad (1/2 × 1/2 inch)
- Less than 4 column inches (Need not use the logo, but must use the legend “Equal Housing Lender”)
- In any advertising other than printed advertising, the logo must be at least as large as any other logo used. If no other logo is used, then the fair housing logo must be clearly visible in boldface type or at least 3 percent of the advertisement should be devoted to a statement of the fair housing policy.
- For oral advertising, you may satisfy the Fair Housing Act advertising requirement by stating that you are an “equal housing lender.”
- When advertising is both verbal and visual, you should use either method (a visual logo or a spoken statement) to meet the requirement.
- Each public office should prominently post an equal housing lender poster.
- Advertising may not contain any words, symbols, models, or other forms of communication suggesting a discriminatory preference or policy of exclusion because of race, color, religion, national origin, sex, handicap, or familial status. When using models in advertising, you should use models from different racial groups.
- You should avoid the following:
- Words descriptive of a dwelling, landlord, or tenants, such as white private home, colored home, Jewish home, Hispanic residence, or adult building.
- Words indicative of a prohibited basis, such as:
— Race: Negro, Black, Caucasian, Oriental, American Indian.
— Color: White, Black, Colored.
— Religion: Protestant, Christian, Catholic, Jew.
— National Origin: Mexican American, Puerto Rican, Philippine, Polish, Hungarian, Irish, Italian, Chicano, African, Hispanic, Chinese, Indian, Latino.
— Sex: The exclusive use of words in advertisements (such as “he” or “she”), stating or tending to imply that the loans being advertised are available to persons of only one sex and not the other.
— Age: Senior citizens.
— Handicap: Crippled, blind, deaf, mentally ill, retarded, impaired, handicapped, physically fit.
— Familial Status: Adults, children, singles, mature persons.
- Words and phrases used in a discriminatory context, such as “restricted.”
- “Red light” words. Examples of “red light” words include “sports enthusiasts,” which could discourage the handicapped, and “quiet neighborhood,” which could be a code word for “no children.”
- Symbols or logotypes that imply or suggest race, color, religion, sex, handicap, familial status, or national origin.
- Colloquialisms used regionally or locally that suggest race, color, religion, sex, handicap, familial status, or national origin.
- You should avoid the selective use of advertising media or content, such as:
- The use of the English language alone or the exclusive use of media catering to the majority population in an area, when non-English language or other minority media also are available.
- The strategic placement of billboards, brochures distributed within a limited geographic area, or displays or announcements only available in selected branches.
- The use of human models primarily in media that cater to one racial or national origin segment of the population without a complementary advertising campaign directed at other groups.
