The Consumer Financial Protection Bureau issued a consent order against Low VA Rates LLC after finding that the company sent mailers for mortgage loans guaranteed by the U.S. Department of Veteran Affairs containing false, misleading and inaccurate statements, according to a press release.
According to the CFPB's report, Low VA Rates' conduct violated the Consumer Financial Protection Act's Mortgage Acts and Practices - Advertising Rule and Regulation Z. The Utah-based mortgage lender and broker incorporated in Colorado is licensed in 48 states and the District of Columbia used direct-mail to primarily advertise to U.S. military service members and veterans. The CFPB's consent to order requires that Low Va Rates pay a penalty of $1.8 million to the bureau while imposing requirements to prevent future violations.
"Today’s action is the ninth and last case stemming from a Bureau sweep of investigations of multiple mortgage companies that used deceptive mailers to advertise VA-guaranteed mortgages," according to the CFPB report.
"The Bureau commenced this sweep in response to concerns raised by the VA about potentially unlawful advertising in the mortgage lending market."
Click here to read more about the settlement.
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