WASHINGTON (2/17/15)--Three mortgage companies alleged to have misled consumers about U.S. government approval of its products are the subject of action taken last week by the Consumer Financial Protection Bureau (CFPB).
All Financial Services, American Preferred Lending and Flagship Financial Group are alleged to have imitated U.S. government notices, a violation of the Mortgage Acts and Practices Advertising Rule.
The CFPB is suing All Financial Services, a reverse mortgage lender, for advertisements that misrepresented that the source was, or was affiliated with, a governmental entity.
The CFPB is also ordering Flagship Financial Group and American Preferred Lending to end their false advertising. Flagship allegedly implied its Department of Veterans Affairs loans were endorsed or sponsored by the Department of Housing and Urban Development.
American Preferred Lending allegedly sent mailings that appeared as if they were U.S. government notices, with a Federal Housing Administration-approved lending logo and a reference to a federal government website.
According to the CFPB, these actions were taken as a result of a joint review of roughly 800 randomly selected mortgage ads around the country.