washington dc – Today, the Consumer Financial Protection Bureau (CFPB) permanently banned RMK Financial Corporation, doing business as Majestic Home Loans, from the mortgage industry, banning RMK from engaging in mortgage lending activities or from lending mortgages. Receiving any rewards is prohibited. In 2015, the CFPB issued an agency order against her RMK. This involved sending ads specifically to military families and tricking recipients into believing the company was affiliated with the US government. Despite these and other acts being prohibited by a 2015 order, the company did not use counterfeit U.S. Department of Veterans Affairs (VA) stamps, Federal Housing Administration (FHA) logos, and other language or Using design elements to falsely imply that RMK is affiliated with any government. In addition to the ban, RMK said he will pay a $1 million fine and be credited to the CFPB Victim Relief Fund.
“Even after the 2015 law enforcement order, RMK continued to lie to military families by falsely implying that the government approved mortgages,” said CFPB Director Rohit Chopra. “Our actions reflect our commitment to weeding out repeat offenders and will shut down this organization permanently.”
RMK is a privately held company with its principal place of business in Ontario, California. RMK is a nonbank licensed mortgage broker or lender in at least 30 states and Puerto Rico. RMK originates consumer mortgages, including VA-backed mortgages and FHA-backed mortgages. However, RMK is not affiliated with either government agency.
In 2015, the CFPB took action against RMK to end its use of deceptive mortgage advertising practices, including ads that lead potential home buyers to believe that the company is affiliated with the VA or FHA. bottom. RMK sent these deceptive advertisements to tens of thousands of military families and other holders of VA-guaranteed mortgages. In addition to paying fines, RMK had to stop illegal and deceptive practices.
The CFPB has previously warned about VA mortgage fraud. Many military personnel, veterans, and military spouses receive fraudulent phone calls and mail from companies that claim to be affiliated with the government, VA, or mortgage servicer.
In the case of RMK, the CFPB found that the company violated the 2015 Order, the Consumer Financial Protection Act, the Mortgage Act and the Customary Advertising Regulations by making hundreds of statements, including making deceptive statements and making inappropriate or unacceptable disclosures. Discovered 10,000 mortgage ads distributed to military families. , and the truth of the lending law. Specifically, the company harmed military families and other consumers by sending millions of ads about mortgages that:
- deceived military families about the government’s role in sending advertisements and providing loans: RMK misrepresents that RMK is the VA or FHA or was affiliated with the VA or FHA, that the notice was sent by the VA or FHA, or that the advertised loan was provided by the VA or FHA; Sent an ad telling. Military families and others who see such advertisements may decide to purchase the advertised mortgage based on their trust in government agencies.
- Misleading borrowers about interest rates and key terms: RMK’s advertisements illegally disclosed the simple annual rate more prominently than the annual rate, illegally promoted unavailable credit terms, and misleadingly used the name of the homeowner’s current lender. rice field. Consumers who see such advertisements may be misled as to the terms offered or be mistaken for current lenders sending advertisements.
- Misrepresented loan requirements and lied about refinancing savings projections: RMK’s ad misrepresented that the benefits available to those eligible for a VA or FHA loan were time-limited. Additionally, RMK advertises that military families can obtain a VA Cashout refinance loan without an evaluation and without incurring evaluation costs, and that evaluation is a minimum requirement, not a condition to qualify for a VA Cashout refinance loan. I misrepresented that I had no credit. Scores are required and no income verification is required to qualify for a VA Cash Out refinancing loan. Finally, RMK’s advertisements misrepresented monthly payments, annual savings based on the advertised loans, and cash available in connection with the advertised loans.
Enforcement measures
Under the Consumer Financial Protection Act, the CFPB has the authority to take action against any agency that violates the Federal Consumer Financial Protection Act. This includes the truth of lending law, aimed at enabling consumers to compare credit terms more easily and informedly. For today’s order, RMK must:
- Exit the mortgage business. RMK shall not be involved in any mortgage loan activity, including advertising, marketing, promoting, offering, offering, initiating, managing, servicing, or selling any mortgage loan, or participating in or receiving compensation from, any other person. Permanently banned from sponsoring mortgage loans. So.
- Pay a fine of $1 million: RMK will be required to pay CFPB a $1 million penalty, which will be deposited into the CFPB Victim Relief Fund.
Today’s action is one of a series of actions the CFPB is taking to deter repeat offenders, especially those who violate agency and court orders. The CFPB recently proposed a registry to detect repeat offenders in financial markets. This action also complements a range of initiatives including: rule making To deter government and corporate identity fraud by the Federal Trade Commission.
Read on for today’s order.
read I am a military or veteran and decided to buy a house. How do I know if a VA loan is right for me?
Read more about VA loans.
Learn more about mortgage protection for veterans.
Consumers can submit complaints about financial products and services by visiting the CFPB website or calling (855) 411-CFPB (2372).
Employees who believe their company has violated the Federal Consumer Financial Protection Act (including truth about lending) are encouraged to send information about what they know to whistleblower@cfpb.gov. For more information on reporting potential industry misconduct, visit his CFPB website.
The Consumer Financial Protection Bureau (CFPB) is a 21st-century agency that strives to make its rules more effective, enforce them consistently and fairly, and give consumers more control over their economic lives. Helping consumer finance markets work. For more information, see: www.consumerfinance.gov.
