The Consumer Finance Protection Bureau has some words for mortgage lenders looking to mislead Veterans.
In a press release today, CFPB put about 12 mortgage lenders on notice for potentially misleading advertisements targeting older folks and Veterans. Additionally, six companies are under investigation for potentially more serious violations.
CFPB identified a number of problems with mortgage advertisements, like inaccurate interest rates and misrepresentation of government affiliations.
From the release:
Today’s actions stem from a joint “sweep,” a review conducted by the CFPB and the FTC of about 800 randomly selected mortgage-related ads across the country, including ads for mortgage loans, refinancing, and reverse mortgages.
Holly Petraeus, CFPB’s Assistant Director of Service Member Affairs, adds today:
Some advertisers will use your military or veteran status as a way to approach you, promising special deals or implying VA approval. Others will use the lure of a “no-payment” reverse mortgage to troll for older Americans desperate to find a way to stay in their home when they can no longer afford a mortgage payment.
The bottom line? Work directly with your bank to ensure a VA-backed loan works for you. Check out our previous entries on home loans for more information: here, here, and here. And to receive updates from the watchdogs at CFPB, follow them on Facebook and Twitter.