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Consumer Financial Protection Bureau Settles with Ninth Mortgage Company to Address Deceptive Loan Advertisements Sent to Servicemembers and Veterans
On Monday, October 26, 2020, the Bureau issued a press release regarding a consent order against Low VA Rates LLC (Low VA Rates) to address the Bureau’s finding that Low VA Rates sent consumers mailers for mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) that contained false, misleading, and inaccurate statements. Low VA Rates’ conduct violated the Consumer Financial Protection Act’s (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices – Advertising Rule (MAP Rule), and Regulation Z. Low VA Rates, a Utah-based mortgage lender and broker incorporated in Colorado and licensed in 48 states and DC, advertised their VA-guaranteed loans through direct-mail primarily to U.S. military servicemembers and veterans. The consent order requires Low VA Rates to pay a civil money penalty of $1,800,000 to the Bureau and imposes requirements to prevent future violations.
The consent order against Low VA Rates can be found at: https://files.consumerfinance.gov/f/documents/cfpb_low-va-rates-llc_consent-order_2020-10.pdf .