CFPB Smackdown

Posted by kevin on April 15, 2015 under Foreclosure Blog | Comments are off for this article

In the previous blog, we stated that litigation in the area of servicing is going to be the next battlefield between consumers and the mortgage industry based on Dodd-Frank and the CFPB regulations.

Recently, the CFPB announced a $250,000 fine against RMK Financial Corp for unfair and deceptive advertising. More specifically, RMK was putting out a mailing (and we all get them in one form or another)
which suggested that its loan program was affiliated with the government. Reference was made to the VA interest rate or the FHA Streamline Department. Moreover, logos were placed on the mailing which gave the impression that a governmental agency was either behind the mailing or affiliated with RMK.

Richard Cordray, the head of the CFPB, put it succinctly:

Deceptive advertising has no place in the mortgage marketplace.