MetaSource Mortgage Blog

CFPB Fines: 2015

Wednesday, May 06, 2015

CFPB Fines

While the Consumer Finance Protection Bureau (CFPB) has grabbed headlines with huge fines levied against GE Capital ($225 million), JP Morgan Chase ($36 million) and Wells Fargo ($26 million), the following are actions taken and large fines levied by the CFPB on smaller mortgage lenders and servicers in 2015 alone:

Green Tree Fine: $63 million for Mistreating Borrowers

April 21: Despite receiving a superior five STAR designation as part of Fannie Mae's "Servicer Total Achievement and Rewards" program last year, Green Tree Servicing was fined by both the CFPB and FTC for mistreating borrowers who attempted to avoid foreclosure according to HousngWire. Learn more…

NewDay Financial: $2 million for Deceptive Mortgage Advertising and Kickbacks

February 10: The Consumer Financial Protection Bureau (CFPB) took action against NewDay Financial, LLC for deceptive mortgage advertising and kickbacks. NewDay deceived consumers about a veterans' organization's endorsement of NewDay products and participated in a scheme to pay kickbacks for customer referrals. NewDay will pay a $2 million civil money penalty for its actions. Learn more…

RMK Financial: $250,000 for Illegal & Deceptive Practices

April 9: The CFPB fined lender RMK Financial Corporation $250K for deceptive mortgage advertising practices, including those leading consumers to think the company was affiliated with the federal government according to Housing Wire. Learn more…

CFPB Takes Action Against 3 Mortgage Companies for Misrepresenting U.S. Government Affiliation

February 12: the Consumer Financial Protection Bureau (CFPB) is taking action against three mortgage companies for misleading consumers with advertisements implying U.S. government approval of their products. The CFPB is suing reverse mortgage lender All Financial Services, seeking to halt its illegal activities. The CFPB is also ordering Flagship Financial Group and American Preferred Lending to end their false advertising. Lean more…

More CFPB Fines on the Way

In this day and age of the mortgage industry, you cannot afford to think that the CFPB is not watching you as they are. The best defense against the CFPB is to be proactive about being compliant. Contact MCA today about how you can be proactive and have a robust and healthy Compliance Management System. Be ready when the CFPB shows up at your door.

At this rate, we think it's safe to say that many more fines will be levied this year…

Learn how to avoid fines of this nature. Schedule a FREE compliance & risk assessment TODAY

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