On July 24, 2020, the CFPB announced the issuance of consent orders against Sovereign Lending Group, Inc. (Sovereign) and Prime Selection Funding, Inc. (Prime Choice).
The CFPB suggested inside their statement that these consent purchases originated from a wide range of investigations by the CFPB into companies presumably making use of misleading direct mail promotions to promote VA guaranteed in full mortgages. Both consent purchases allow for civil money charges, with Sovereign ordered to pay for $460,000 and Prime solution ordered to pay for $645,000.
Both consent sales assert violations of Regulation Z together with Mortgage installment loans TX Acts and PracticesвЂ”Advertising Rule (the вЂњMAP RuleвЂќ or Regulation N), and Title X regarding the Dodd-Frank Act (the customer Financial Protection Act) for SovereignвЂ™s and Prime ChoiceвЂ™s marketing of VA mortgages to solution members and veterans dating back to to January 1, 2016. Major themes of this asserted violations both in sales consist of (1) вЂњfalse, deceptive and inaccurate representationsвЂќ about credit terms and inadequate disclosures, (2) the shortcoming of customers to get the advertised terms, and (3) falsely representing affiliation with all the federal federal government.