CFPB-PR-240829-1 (Aug. 29, 2024) CFPB Orders NewDay USA to Pay $2.25 Million for Illegally Luring Veterans and Military Families into Cash-Out Refinance Loans – NewDay USA’s deceptive tactics came amid VA home loan “churning” scandal WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against repeat offender New Day Financial (NewDay USA) for […]
Category: Mortgage Churning
Mortgage Churning refers to the practice where mortgage brokers or lenders persuade borrowers to repeatedly refinance their mortgages, often within short time frames, primarily to earn new fees or commissions. This can involve pushing borrowers into new loans with higher interest rates, additional fees, or unfavorable terms, despite their current mortgage being financially stable or even beneficial. The practice benefits the broker or lender at the borrower’s expense, leading to increased costs, extended loan terms, and potential financial strain for the borrower, while undermining trust and integrity in the mortgage industry.