Mortgage News March 13, 2023
The Consumer Financial Protection Bureau (CFPB) has permanently banned RMK Financial Corp., also known as Majestic Home Loans, from participating in mortgage lending activities and making any money in the industry. This decision came after RMK continued its deceptive advertising practices, despite a previous agency order in 2015.
The CFPB found that RMK distributed ads to military families with fake seals from the US Department of Veterans Affairs (VA), logos from the Federal Housing Administration (FHA), and other misleading language and symbols. These insignias and verbiage falsely implied that RMK was affiliated with the US government or that the notices were sent by the VA or FHA. RMK, which originated VA-guaranteed loans, was not officially affiliated with the VA or FHA.
Other violations in RMK’s advertising included the use of misleading names of homeowners’ current lenders, deceptive practices regarding interest rates and unavailable credit terms, and misrepresentation of loan requirements, monthly payment amounts, and projected savings from refinancing. In 2015, the company was ordered to stop false advertising practices and to pay a fine.
Despite the previous order, RMK continued to disseminate millions of ads with deceptive information, according to the CFPB. The bureau found that RMK’s actions were in violation of the Consumer Financial Protection Act, the Mortgages Acts and Practices Advertising Rule, and the Truth in Lending Act, in addition to the previous 2015 order.
CFPB Director Rohit Chopra said in a statement that the bureau is committed to “weed out repeat offenders,” and the action against RMK reflects that commitment. The penalty for RMK is $1 million, which will be deposited into the CFPB’s victims relief fund.
The CFPB’s decision to ban RMK from mortgage lending activities and the industry altogether highlights the bureau’s commitment to protecting consumers from deceptive practices. The penalty also sends a strong message to companies that attempt to mislead consumers through false advertising and other unethical practices.
For any questions OR a sample of the records please submit the following form.