Who is responsible for reviewing all advertising and marketing materials used by a licensed entity and sponsored mortgage loan originators to ensure compliance?

• A. The compliance department
• B. Lending managers and branch managers
• C. The marketing team
• D. The auditors

Answer: (B)

The main idea here is who oversees advertising to ensure it is compliant in day-to-day operations. Lending managers and branch managers are the ones who supervise the loan originators and the activities at each location, so they are the ones responsible for reviewing and approving all advertising and marketing materials used by the licensed entity and sponsored MLOs. They ensure that any ads or marketing pieces are accurate, include required disclosures, and don’t mislead borrowers before those materials go out. The compliance department provides the rules and standards, and may review materials, but the on-site managers own the ongoing responsibility to check what’s being used. The marketing team creates content, but the final check for regulatory compliance typically rests with the managers who oversee daily lending activities. Auditors assess compliance after the fact rather than actively reviewing materials before use.