US FTC probing more than dozen mortgage companies

WASHINGTON, April 29 (Reuters) - The Federal Trade Commission is investigating "more than a dozen" mortgage companies for possible deceptive advertising, an FTC agency official told Congress on Tuesday.

Lydia Parnes, director of the FTC's bureau of consumer protection, said the agency will also soon follow up on more than 200 warning letters it sent out last year to mortgage brokers and lenders about home mortgage advertisements.

"The FTC identified the ads, including some in Spanish, in June 2007 during its nationwide review of ads featuring claims for very low interest rates or monthly payment amounts without adequate disclosure of other important loan terms," Parnes said in prepared testimony to a Senate commerce subcommittee.

Parnes said the agency recently reviewed the current advertising of those who received warning letters and will follow up with law enforcement where appropriate.

She did not provide more details in her prepared remarks on the advertising sweep investigations.

Next month, FTC staff economists plan to hold a conference on strategies to ensure consumers receive clearer mortgage disclosures. (Reporting by Karey Wutkowski; Editing by Tom Hals)