- The CFPB reached a settlement with mortgage broker and lender Go Direct Lenders, Inc. (“Go Direct”) to resolve allegations that it deceptively marketed mortgages guaranteed by the United States Department of Veterans Affairs (“VA”) in violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Mortgage Acts and Practices – Advertising Rule (“MAP Rule”) and Regulation Z.
- According to the consent order, the CFPB alleged, among other things, that Go Direct’s advertising misrepresented and failed to properly disclose the credit terms of the advertised VA-guaranteed mortgage loans, including advertising a lower annual percentage rate than it actually offered, misrepresenting the fees associated with the loans, and misleadingly described variable-rate loans as fixed. The CFPB also alleged that Go Direct misleadingly implied that it was associated with the U.S. government.
- Under the terms of the consent order, Go Direct will pay a civil penalty of $150,000 and will create a compliance program and designate an advertising compliance official responsible for reviewing Go Direct’s mortgage advertising, among other things.