On December 6, 2018, the Bureau of Consumer Financial Protection (“CFPB”) announced that two days earlier it had filed a complaint and stipulated final judgment and order against a Nevada-based non-bank mortgage company in the U.S. District Court for the District of Nevada. The mortgage company allegedly violated the Consumer Financial Protection Act by misrepresenting the benefits of its interest rate reduction refinance loans. Specifically, the company allegedly made misleading representations concerning (1) the future principal owed on a mortgage loan absent a refinance; (2) the future monthly payments if the consumer refinanced with the company; and (3) the amount the consumer would owe on the existing and refinanced loans.
If the court enters the stipulated final judgment and order, the company will provide consumer relief of $268,869, pay a civil penalty of $260,000, and be enjoined from making similar misleading representations in the future.