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CFPB Issues Consent sales for False and Misleading Advertising for VA Mortgages

CFPB Issues Consent sales for False and Misleading Advertising for VA Mortgages

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 utilizing misleading mail that is direct to promote VA fully guaranteed mortgages. Both consent purchases allow for civil cash charges, with Sovereign ordered to pay for $460,000 and Prime solution ordered to cover $645,000.

Both consent sales assert violations of Regulation Z while the Mortgage Acts and Practices—Advertising Rule (the “MAP Rule” or Regulation N), and Title X regarding the Dodd-Frank Act (the customer Financial Protection Act) for Sovereign’s and Prime Choice’s marketing of VA mortgages to solution users and veterans dating back to to 1, 2016 january.