Category: Mortgages

Mortgages are loans specifically designed for purchasing real estate, where the property itself serves as collateral for the loan. Borrowers receive a lump sum of money from a lender, typically a bank or mortgage company, which they agree to repay over a set period, usually 15 to 30 years, through monthly installments. These payments include both principal and interest, and the loan terms, including the interest rate and repayment schedule, are determined at the time of borrowing. Mortgages are essential for enabling individuals and families to buy homes without needing to pay the full purchase price upfront, and they come with various types, such as fixed-rate or adjustable-rate mortgages, each offering different advantages depending on the borrower’s financial situation and market conditions.

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CFPB-PR-240829-1

Cash-Out Refinance Loans Categories CFPB CFPB-24 CFPB-2408 Companies in the News Federal News Sources Mortgage Churning Mortgages New Day Financial LLC Veterans and Military Families

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 deceiving active duty servicemembers and veterans seeking cash-out refinance loans. The CFPB found that NewDay USA gave misleading and incomplete cost comparisons to borrowers refinancing in North Carolina, Maine, and Minnesota, which made the company’s loans appear less expensive relative to their existing mortgages. The CFPB is ordering NewDay USA to pay a $2.25 million civil penalty to the CFPB’s victims relief fund.

CFPB News Release - CFPB-PR-240829-1

CFPB-PR-240829-1

Date: Aug. 29, 2024

Accessed: Aug. 31, 2024

Source URL:  https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-newday-usa-to-pay-2-25-million-for-illegally-luring-veterans-and-military-families-into-cash-out-refinance-loans/

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CFPB-PR-240829-1

CFPB-PR-240821-1

Categories CFPB CFPB-24 CFPB-2408 Companies in the News Fay Servicing LLC Federal News Sources Mortgages

CFPB-PR-240821-1 (Aug. 21, 2024)

CFPB Takes Action Against Fay Servicing for Illegal Foreclosure Actions and Violating Law Enforcement Order – Order requires the mortgage servicer to pay $5 million in redress and penalties, and sets compensation limits on CEO Edward Fay

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered Fay Servicing to pay a $2 million penalty for violations of mortgage servicing laws, as well as for violations of a 2017 agency order that addressed its illegal foreclosure practices. The company failed to implement the order’s requirements and continued to break the law. Fay Servicing took prohibited foreclosure actions against borrowers requesting mortgage assistance, failed to offer borrowers mortgage assistance options available to them, and overcharged for private mortgage insurance. In addition to the civil money penalty, the CFPB’s order requires Fay Servicing to pay consumer redress of $3 million and to invest $2 million to update its servicing technology and compliance management systems. The order also puts compensation limits on Edward Fay, the company’s Chairman of the Board and Chief Executive Officer (CEO), if Mr. Fay does not take actions necessary to ensure compliance with the order.

CFPB News Release - CFPB-PR-240821-1

PR-240821-1

Date: Aug. 21, 2024

Accessed: Aug. 26, 2024

Source URL: https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-fay-servicing-for-illegal-foreclosure-actions-and-violating-law-enforcement-order/

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PDF Notes:

  • The PDF viewer below disables the links inside the PDF file.
  • The PDF file may be downloaded if you wish.
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CFPB-PR-240821-1