Industry NewsMortgage

Bureau fines mortgage lender $250,000 for deceptive ads

RMK Financial’s marketing falsely claimed mortgage products were endorsed by VA and FHA, bureau says

Continuing its streak of taking action against mortgage lenders accused of engaging in deceptive advertising practices, the Consumer Financial Protection Bureau announced today that it has fined RMK Financial Corp. $250,000 for misrepresenting to consumers that it was affiliated with the U.S. government, for the price of its advertised mortgages, and for failing to include required disclosures regarding interest rates and monthly payments in its ads. The consent order is the fifth enforcement action the CFPB has completed in the past two months against companies the bureau alleges used deceptive mortgage advertising. “Deceptive advertising has no place in the mortgage marketplace, and the Consumer Bureau will continue to take action against companies that mislead consumers with false claims of government affiliation,” said CFPB Director Richard Cordray in a statement announcing the consent order. “Today’s action sends a clear message that misleading consumers is illegal,...