- The Bureau for Consumer Financial Protection (“CFPB”) has reached an agreement with reverse mortgage lender Nationwide Equities Corporation (“Nationwide Equities”) to clarify allegations that false and misleading advertisements to market its reverse mortgages are in violation of Dodd-Frank -Wall Street Reform and Consumer Protection Act, the Truth in Lending Act and the Promotion Rule for Mortgage Laws and Practices.
- According to the Consent orderThe CFPB found that Nationwide Equities was misleading potential customers by misrepresenting the cost of their reverse mortgages. She did not state that borrowers would continue to have to pay taxes and insurance, or stated that the consumer had been pre-approved if it did not and exaggerated the potential savings a consumer could get from their reverse mortgages, among other things.
- Under the terms of the informed consent form, Nationwide Equities will pay a civil penalty of $ 140,000 to the CFPB. It is also prohibited to use misleading and illegal advertising practices and must implement a comprehensive compliance system and appoint an advertising compliance officer to ensure that its future advertising complies with consumer financial protection laws and informed consent, among other things.
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