What Small Mortgage Lenders Can Learn from Credit Card Settlement

The Consumer Financial Protection Bureau has once again utilized its broadest and most powerful weapon—Unfair and Deceptive Acts and Practices—to levy large fines. This time, it was Bank of America that received a $727 million dollar fine for “illegal credit card practices.” These practices included alleged deceptive marketing by inaccurately describing the benefits of certain add-on charges and the billing process for such charges. In particular, it is alleged that telemarketers “went off script” in describing the benefits and charges of certain credit protection plans to coax consumers into receiving them. Many smaller lenders still utilize telemarketer driven leads for all or part of their business. Even more lenders rely upon loan officers during initial conversations with consumers to accurately communicate the benefits and risks of certain loan products as well as describing the lending process. Read Full Article on National Mortgage News