The CFPB recently filed a complaint and proposed stipulated order against a reverse mortgage provider, alleging that the company used deceptive marketing and that the company’s actions violated a 2016 administrative consent order.
The CFPB alleges that the provider sent mail advertisements with inflated home value estimates to make reverse mortgages more attractive. The advertisements claimed that the provider “attempt[ed] to ensure the home value information provided is reliable.” The complaint, however, alleges the provider made no such attempts. The CFPB claims that the provider violated the CFPA because it made deceptive representations about the estimated home values and the accuracy of home estimates.
The complaint also alleges that the provider’s alleged deceptive practices violated a 2016 administrative consent order. The 2016 consent order previously found that the provider’s marketing materials included deceptive statements, violating the CFPA.
The CFPB’s proposed stipulated order requirements include, but are not limited to, the following: a detailed and comprehensive compliance plan to be submitted by the provider to the CFPB for review and determination of non-objection; provider to pay $173,400 in redress to affected customers; and a $1.1 million civil money penalty.