Lenox Financial Mortgage is known for their ever-present radio campaigns touting “no cost” refinancing and is the prime example of what I call “deceptive or incomplete” advertising.

Refer to my article, “No Closing Cost Mortgage Advertising Is a Lie” to see how Lenox Financial and others pull the wool over the eyes of the average mortgage consumer.

I was interviewed last week by a reporter for the Atlanta Journal Constitution, Bill Torpy, who published an article critical of “no-cost’ mortgage advertisers like Lenox Financial.

All the online rate advertising websites claim to have the best mortgage rates. It is easy to claim you have the best mortgage rates when you have no oversight.

There is more than one lawsuit claiming the rates Bankrate.com, for example, post are manipulated by the companies that advertise on their site. A recent $46,000,000 verdict was pinned on NovaStar for allegedly making false mortgage rate postings on Bankrate.com. They plan to appeal.

The FTC this week announced a “crack down” on mortgage advertisers who use deceptive language in there solicitations. This comes on the heels of a statement earlier in the summer by Federal Reserve Chairman, Ben Bernanke, that the Fed plans to make changes to federal rules on mortgage marketing by the end of the year. This action and announcement seems “consumer friendly” and all, but it really is just…too little, too late.

I see a commercial on TV for E-Agent.com.  Maybe you have seen them too…they have a big red circle with a lower case “e” in it.  It seems they are pretty new so don’t let them get any bigger!

Here is what they say on their commercial.

(TV marketing at it’s finest…)

1. Identify great deals

Mortgage companies who advertise on radio and TV about “no closing costs” or “$395 flat fee” are simply lying.

I know for many of you hearing an untruthful advertisement is no great threat, but for the proverbial little old lady or an unsuspecting first time buyer it truly is. I think with 2 trillion dollars in adjustable loans set to adjust over the next 24 months, you got hoodwinked by false advertising more than we’d all care to admit.

Late night TV advertising designed to sell you on the foreclosure for sale investment opportunity will make you millions if you’ll only attend the “free seminar”.

Russell Whitney, CEO of Whitney Information Network, Inc. is the promoter/owner of the TeachMeForeclosure.com infomercial, “free” seminar, and website peddling this new foreclosure for sale “opportunity”.

No cost mortgage advertisers pound the air waves spewing this mortgage lie. The no cost mortgage is a scam requiring great salesmanship, some misdirection, and an unsophisticated client.