CFPB bans RMK Financial from mortgage industry for deceptive practices
Deceptive mortgage ads have led to a $1 million fine and a permanent ban on the company.
The Consumer Financial Protection Bureau (CFPB) has dealt a decisive blow to RMK Financial Corporation (dba Majestic Home Loans) by permanently banning it from the mortgage lending industry. The ban comes after RMK repeatedly engaged in deceptive advertising practices that targeted military families, falsely implying an affiliation with the US government.
In 2015, the CFPB issued an agency order against RMK for misleading advertisements to military families that implied the company was affiliated with the United States government. Despite the order, RMK engaged in a series of repeat offenses, including sending millions of mortgage advertisements to military families that deceptively used fake US Department of Veterans Affairs (V.A.) seals, the Federal Housing Administration (FHA) logo, and other language or design elements to falsely imply government affiliation.
The penalty includes a $1 million fine, which RMK must pay to the CFPB’s victims' relief fund. RMK is also permanently banned from engaging in any mortgage lending activities, including advertising, marketing, promoting, offering, providing, originating, administering, servicing, selling mortgage loans, or even assisting others in doing so.
“Even after the 2015 law enforcement order, RMK continued to lie to military families by falsely implying government endorsement of its home loans,” CFPB director Rohit Chopra said in a statement. “Our action reflects our commitment to weed out repeat offenders, and we are shutting down this outfit for good.”
RMK is a privately held corporation licensed as a mortgage broker or lender in at least 30 states and Puerto Rico, originating consumer mortgages, including VA-guaranteed and FHA-insured mortgages. However, RMK is affiliated with neither government agency.