CFPB Enters Into $1 Million Consent Order With Nonbank Mortgage Lender
07 March 2023
Goodwin Procter LLP
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On February 27, 2023, the Consumer Financial Protection Bureau
(CFPB) announced that it had entered into a consent order with a mortgage lender,
resolving allegations that the lender engaged in “a series of
repeat offenses,” including violating a 2015 order prohibiting
the lender from engaging in allegedly deceptive advertising.
According to the CFPB, the lender sent advertisements to military
families falsely claiming it was affiliated with the U.S.
Department of Veterans Affairs (VA) and the Federal Housing
Administration (FHA) in violation of the CFPA, Regulation N, TILA,
and Regulation Z. Further, the CFPB alleges that the lender misled
borrowers concerning key terms of the loans, such as interest rates
and monthly payment amounts, and misrepresented loan requirements
and potential refinancing options.
CFPB Director Rohit Chopra emphasized that this actions reflects
CFPB’s “commitment to weed out repeat offenders” as
“[e]ven after the 2015 law enforcement order, [the company]
continued to lie to military families by falsely implying
government endorsement of its home loans.”
Pursuant to the consent order, the company is permanently banned
from engaging in mortgage lending activities. Additionally, the
lender agreed to pay a $1 million penalty to be deposited into the
CFPB’s victim relief fund.
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