On August 21, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had a reached a settlement with a California-based lender, resolving allegations that the lender had sent deceptive loan advertisements to servicemembers and veterans in violation of the Consumer Financial Protection Act (CFPA), the Mortgage Acts and Practices – Advertising Rule (MAP Rule), and Regulation Z.
The lender allegedly sent mailers that misrepresented the terms of credit actually available, misleadingly described variable-rate loans as “fixed” rate, and falsely stated that consumers with low credit scores would qualify for the advertised rates.
The consent order requires the lender to pay the CFPB a $150,000 civil money penalty and prohibits future violations. This is the third in a string of similar actions the CFPB has brought against lenders who offer mortgage loans guaranteed by the United States Department of Veterans Affairs.
The post CFPB Settles Another Case With Mortgage Company Over Allegedly Deceptive VA Loan Advertisements appeared first on Consumer Finance Insights (CFI).