On February 12, 2015, the CFPB announced that it had filed a complaint in the U.S. District Court for the District of Maryland alleging that a Maryland-based reverse mortgage lender and broker disseminated deceptive and misleading advertisements for mortgage credit products, thereby violating the Mortgage Acts and Practice Rule, 12 C.F.R. pt. 1014, and sections 1031(a) and 1036(a)(1)(B) of the Consumer Financial Protection Act of 2010. The CFPB contends in its complaint that the lender’s advertisements for FHA and VA loans implied that the lender was affiliated with the U.S. government, which constitutes a deceptive act that violates the Consumer Financial Protection Act’s prohibition against Unfair, Deceptive, and Abusive Acts or Practices (UDAAP). The Complaint further alleges that the lender mislead consumers regarding whether they would be required to make monthly payments, and also failed to keep records of the allegedly deceptive advertisements. As relief, the complaint seeks civil penalties, disgorgement of revenues, recovery of enforcement costs, and a permanent injunction against the deceptive advertising.
Blog Enforcement Watch February 12, 2015