By KIMBERLEY HAAS
Officials at the Consumer Financial Protection Bureau are taking action against a California-based mortgage lender that allegedly sent misleading advertisements to military families.
According to a press release, RMK Financial Corporation falsely represented that the company was affiliated with the Department of Veterans Affairs and the Federal Housing Administration.
RMK Financial does business as Majestic Home Loan and is licensed as a mortgage broker or lender in at least 29 states. Officials say that although the company originated loans guaranteed by the VA and mortgages insured by the FHA, they are not affiliated with these agencies.
Officials warned RMK about misleading consumers in 2015 but say the company engaged in a series of repeat offenses, leading to Monday’s permanent ban and a $1 million penalty.
“Even after the 2015 law enforcement order, RMK continued to lie to military families by falsely implying government endorsement of its home loans,” CFPB Director Rohit Chopra said in a statement. “Our action reflects our commitment to weed out repeat offenders, and we are shutting down this outfit for good.”
An order prohibits RMK from engaging in mortgage lending activities. This includes advertising, marketing, promoting, offering, providing, originating, administering, servicing, or selling mortgage loans.
The company cannot participate in or receive remuneration from mortgage lending or assist others in doing so.
Officials at the CPFB say that victims of scams should file a complaint with their state attorney general and report the matter to the Federal Trade Commission.
Follow Us On Twitter:
More people in business, including those in lending, are returning to in-person work after the pandemic. https://t.co/fS7Xo208iI
— The Mortgage Note (@TheMortgageNote) February 27, 2023
Read More Articles By Kimberley Haas:
Administration: Buyers Will Save Money On Mortgage Payments Through Premium Reduction
Sun Belt Success And Stress: One-On-One With Troy Williamson
Insulation Contractor Sentenced To 15 Months In Prison For Bid Rigging, Fraud