In this article released by HousingWire, the U.S. Consumer Financial Protection Bureau (CFPB) has issued a cease-and-desist order to RMK Financial Corporation, a mortgage lender. The order mandates that RMK must stop illegal activities within the mortgage lending industry.
The CFPB alleges that RMK engaged in unfair and deceptive acts and practices, such as misrepresenting loan terms and conditions, making false promises regarding loan modifications and forbearances, steering consumers to unaffordable loan products, and not providing accurate information to consumers regarding the status of their loan. Additionally, evidence showed that RMK collected fees in excess of the amount they disclosed to borrowers.
The cease-and-desist order also includes a monetary penalty in the amount of one hundred thirty three thousand five hundred dollars, which the CFPB believes is necessary to deter similar unlawful behavior in the future. In addition to the monetary penalty, the order requires RMK to provide full refunds to consumers who were harmed by the illegal activities. Lastly, the order requires RMK to cease any further misrepresentations of material facts to consumers and requires them to properly disclose loan related fees.
The CFPB’s action against RMK is part of a broader effort to protect consumers from unlawful practices in the mortgage industry. The agency encourages other mortgage lenders to comply with all applicable laws and regulations in order to ensure consumers are treated fairly. Consumers who believe they have been a victim of illegal lending practices are encouraged to reach out to the CFPB for assistance.
You can read this full article at: https://www.housingwire.com/articles/cfpb-bans-rmk-financial-corporation-from-mortgage-lending-industry/(subscription required)
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