Return to site
Return to site

Mortgage Advertiser Fined for Bad Ads

On September 14, 2020, the Consumer Financial Protection Bureau (Bureau) issued a consent order against ClearPath Lending, Inc. (ClearPath), a California corporation that is licensed as a mortgage broker or lender in about 22 states. ClearPath offers and provides mortgage loans guaranteed by the United States Department of Veterans Affairs (VA).

ClearPath’s principal means of advertising VA-guaranteed loans is through direct-mail campaigns sent primarily to United States military service-members and veterans. The Bureau found that ClearPath sent consumers mailers for VA-guaranteed mortgages that contained false, misleading, and inaccurate statements or that lacked required disclosures, in violation of the Consumer Financial Protection Act’s (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices—Advertising Rule (MAP Rule), and Regulation Z.

Specifically, ClearPath sent consumers numerous advertisements for VA-guaranteed mortgages that, among other things, misrepresented the credit terms of the advertised mortgage and failed to include disclosures required by Regulation Z. The consent order requires ClearPath to pay a $625,000 civil money penalty and imposes requirements to prevent future violations.

See original article here.

Subscribe
Previous
Website Accessibility During Covid-19
Next
Website Accessibility in 2021
 Return to site
Cookie Use
We use cookies to improve browsing experience, security, and data collection. By accepting, you agree to the use of cookies for advertising and analytics. You can change your cookie settings at any time. Learn More
Accept all
Settings
Decline All
Cookie Settings
Necessary Cookies
These cookies enable core functionality such as security, network management, and accessibility. These cookies can’t be switched off.
Analytics Cookies
These cookies help us better understand how visitors interact with our website and help us discover errors.
Preferences Cookies
These cookies allow the website to remember choices you've made to provide enhanced functionality and personalization.
Save