July 19, 2024
CFPB bans RMK Monetary from mortgage business for misleading practices

The Shopper Monetary Safety Bureau (CFPB) has dealt a decisive blow to RMK Monetary Company (dba Majestic Residence Loans) by completely banning it from the mortgage lending business. The ban comes after RMK repeatedly engaged in misleading promoting practices that focused navy households, falsely implying an affiliation with the US authorities.

In 2015, the CFPB issued an company order in opposition to RMK for deceptive commercials to navy households that implied the corporate was affiliated with the US authorities. Regardless of the order, RMK engaged in a collection of repeat offenses, together with sending hundreds of thousands of mortgage commercials to navy households that deceptively used faux US Division of Veterans Affairs (V.A.) seals, the Federal Housing Administration (FHA) brand, and different language or design parts to falsely suggest authorities affiliation.

The penalty features a $1 million tremendous, which RMK should pay to the CFPB’s victims reduction fund. RMK can also be completely banned from participating in any mortgage lending actions, together with promoting, advertising and marketing, selling, providing, offering, originating, administering, servicing, promoting mortgage loans, and even helping others in doing so.