What is true about signs for properties "for sale by owner" provided by mortgage loan originators?

Prepare for the Utah PLM Test with flashcards, multiple choice questions, and detailed explanations. Maximize your chances of passing with a thorough review of lending and mortgage concepts.

The statement that it is permissible for mortgage loan originators to place signs for properties "for sale by owner," as long as it is clear that potential buyers should contact the property owner, aligns with regulations governing advertising practices in real estate. This approach ensures that buyers understand who to reach out to regarding the property while allowing the originator to promote their services effectively.

The primary emphasis is on clarity in communication. By clearly indicating that interested parties should contact the owner, the sign complies with necessary guidelines that safeguard consumer awareness, thereby maintaining transparency in the process. This method allows originators to engage in advertising while respecting the autonomy of the property owner and adhering to ethical advertising practices.

The other options do not reflect all aspects of the regulatory framework regarding advertising by mortgage loan originators. One of them implies restrictions on promoting services, another limits discussions to just the mortgage company, and yet another suggests a level of oversight by the owner that isn't always required when it comes to advertising practices. Understanding the correct stance on this topic helps maintain adherence to good practices within the industry.

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