{"id":38709,"date":"2023-03-21T05:50:59","date_gmt":"2023-03-21T09:50:59","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-shuts-down-mortgage-loan-business-of-rmk-financial-for-repeat-offenses-against-military-families\/"},"modified":"2023-03-21T05:50:59","modified_gmt":"2023-03-21T09:50:59","slug":"cfpb-shuts-down-mortgage-loan-business-of-rmk-financial-for-repeat-offenses-against-military-families","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-shuts-down-mortgage-loan-business-of-rmk-financial-for-repeat-offenses-against-military-families\/","title":{"rendered":"CFPB Shuts Down Mortgage Loan Business of RMK Financial for Repeat Offenses Against Military Families"},"content":{"rendered":"
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WASHINGTON, D.C.<\/b> \u2013 Today, the Consumer Financial Protection Bureau (CFPB) permanently banned RMK Financial Corporation, which does business as Majestic Home Loans, from the mortgage lending industry by prohibiting RMK from engaging in any mortgage lending activities or receiving remuneration from mortgage lending. In 2015, the CFPB issued an agency order against RMK for, among other things, sending advertisements to military families that led the recipients to believe the company was affiliated with the United States government. Despite the 2015 order\u2019s prohibition on these and other actions, the company engaged in a series of repeat offenses, including disseminating millions of mortgage advertisements to military families that deceptively used fake U.S. Department of Veterans Affairs (VA) seals, the Federal Housing Administration (FHA) logo, and other language or design elements to falsely imply that RMK was affiliated with the government. In addition to the ban, RMK will also pay a $1 million penalty that will be deposited into the CFPB\u2019s victims relief fund.<\/p>\n

\u201cEven after the 2015 law enforcement order, RMK continued to lie to military families by falsely implying government endorsement of its home loans,\u201d said CFPB Director Rohit Chopra. \u201cOur action reflects our commitment to weed out repeat offenders, and we are shutting down this outfit for good.\u201d<\/p>\n

RMK is a privately held corporation with its principal place of business in Ontario, California. RMK is a nonbank that is licensed as a mortgage broker or lender in at least 30 states and Puerto Rico. RMK originates consumer mortgages, including mortgages guaranteed by the VA and mortgages insured by the FHA. However, RMK is affiliated with neither government agency.<\/p>\n

In 2015, the CFPB took action<\/a> against RMK to end its use of deceptive mortgage advertising practices, including advertisements that led potential homebuyers to believe that the company was affiliated with the VA or FHA. RMK sent these deceptive advertisements to tens of thousands of military families as well as to other holders of VA-guaranteed mortgages. In addition to paying a fine, RMK was required to end its illegal and deceptive practices.<\/p>\n

The CFPB has previously warned<\/a> about VA home loan scams. Many servicemembers, veterans, and military spouses receive fraudulent calls and mailers from companies claiming to be affiliated with the government, the VA, or their home loan servicer.<\/p>\n

In the case of RMK, the CFPB found that the company disseminated millions of mortgage advertisements to military families that made deceptive representations or contained inadequate or impermissible disclosures in violation of the 2015 order, the Consumer Financial Protection Act, the Mortgage Acts and Practices Advertising Rule, and the Truth in Lending Act. Specifically, the company harmed military families and other consumers by sending millions of advertisements for mortgages that:<\/p>\n