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.