The Consumer Financial Protection Bureau permanently banned a California mortgage broker on Monday (Feb. 27) for years of abuse and deceptive government representation to military families.
Eight years after sanctioning RMK Financial’s Majestic Home Loans, the CFPB banned the lender for life for disseminating millions of fake mortgage ads that falsely claimed to be affiliated with the Department of Veterans Affairs and the Federal Housing Administration by using their logos.
“Even after the 2015 law enforcement action, RMK continued to deceive to military families by falsely claiming government sponsorship of its home loans,” stated CFPB Director Rohit Chopra. “Our action reflects our commitment to weed out repeat offenders, and we are shutting down this outfit for good,” Chopra added, noting that a $1 million fine levied against RMK will also be added to the CFPB’s victims relief fund.
“Advertising, marketing, promoting, offering, providing, originating, administering, servicing, or selling mortgage loans, or otherwise participating in or receiving remuneration from mortgage lending, or assisting others I
The CFPB is demanding additional information on credit card costs and non-banking organizations’ overdraft and account fees, as well as the RMK prohibition.
The organization also focuses on over $600 billion in insurance payments, many of which carry costs at each stage.
The CFPB stated last week that its newest debt collections data reveals a dramatic increase in customers failing to pay basic monthly obligations. The report indicated that approximately 75% of collections were for non-financial debt and sums under $400, with medical collections still accounting for 60% of unpaid or bad debt.
