The Consumer Financial Protection Bureau (CFPB) on Tuesday announced that it has taken action against Mahwah, N.J.-based reverse mortgage lender Nationwide Equities for advertising practices it describes as “deceptive,” accusing the lender’s materials of violating the Mortgage Acts and Practices Advertising Rule (MAP Rule), the Truth in Lending Act (TILA), and the Consumer Financial Protection Act of 2010 (CFPA).
“[CFPB] today took action against Nationwide Equities Corporation for sending deceptive loan advertisements to hundreds of thousands of older borrowers,” the Bureau said in its announcement of the action. “The Bureau found that advertisements from Nationwide Equities misled consumers about how much money they could receive from a reverse mortgage, the fees and costs associated with the products, and the consequences of nonpayment.”
This marks the first major regulatory action of the CFPB against a reverse mortgage industry participant by the Joe Biden administration.
Our firm provides Advertising Audits and opinions before you publish. It is part of our practice and if you subscribe, you will receive this benefit allowing you to be in better compliance regarding advertising. Advertising is interpreted very broadly. It is an easy area to enforce, because most Brokers and Lenders seem to consistently forget they are subject to specific rules regarding the FTC, Dodd-Frank, and the Safe Act.
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Nelson A. Locke, Esq.