On July 24, 2020, the CFPB announced the issuance of consent orders against Sovereign Lending Group, Inc. (Sovereign) and Prime solution Funding, Inc. (Prime Choice).
The CFPB suggested inside their statement why these consent purchases originated from a wide range of investigations by the CFPB into organizations presumably making use of deceptive direct mail promotions to promote VA guaranteed in full mortgages. Both consent requests give civil cash charges, with Sovereign ordered to pay for $460,000 and Prime preference ordered to pay for $645,000.
Both consent requests assert violations of Regulation Z plus the Mortgage Acts and PracticesвЂ”Advertising Rule (the вЂњMAP RuleвЂќ or Regulation N), and Title X of this Dodd-Frank Act (the customer Financial Protection Act) for SovereignвЂ™s and Prime ChoiceвЂ™s marketing of VA mortgages to solution members and veterans dating back to January 1, 2016. Major themes of this asserted violations both in purchases consist of (1) вЂњfalse, deceptive and inaccurate representationsвЂќ about credit terms and insufficient disclosures, (2) the shortcoming of customers to get the advertised terms, and (3) falsely representing affiliation aided by the government. Continue reading «CFPB Issues Consent requests for False and Misleading Advertising for VA Mortgages»