CFPB tags ninth VA mortgage firm for false promoting
The Consumer Financial Protection Bureau has marked yet another VA lender for misleading borrowers.
Low VA Rates, a Utah-based mortgage lender and broker licensed in 48 states and the District of Columbia, pays $ 1.8 million for “false, misleading, and inaccurate” ads, according to the CFPB. Low VA Rates is the ninth mortgage company to be recognized by the CFPB for misleading marketing of VA loans in the past few months.
According to the CFPB, low VA rates primarily advertised their VA loans through direct mail, aimed at U.S. military service members and veterans. The company’s advertisements allegedly misrepresented loan terms on advertised mortgages “by displaying loan terms the company refused to offer to consumers, including misrepresenting the annual percentage on the advertised mortgage,” the CFPB said. The company has also misrepresented the amount of cash or credit available to consumers and used “misleading rhetorical questions” in connection with the loans it advertised, according to the CFPB.
“Low VA Rates’ ads also misleadingly indicated that its mortgage products could help consumers reduce debt,” the office said.
In addition to the $ 1.8 million fine, low VA rates are required to appoint an advertising officer to review their advertisements for compliance before use, according to the CFPB.
VA low interest rates are the latest in a number of VA mortgage companies selected by the CFPB for misleading advertisements. The cases came from a series of investigations conducted by several VA mortgage lenders, according to the CFPB. The agency received more than $ 4.4 million in fines as a result of the search.