Business ProfileforLow VA Rates

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On October 26, 2020, Low VA Rates, LLC entered into a Consent Order with the Bureau of Consumer Financial Protection. The consent order settles concerns that the business sent consumers mailers for mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) that contained false, misleading and inaccurate statements. The consent states that Low VA Rates' advertisements misrepresented the credit terms of the advertised mortgage loan by stating credit terms that the company was not actually prepared to offer to consumers, including misrepresenting the annual percentage rate applicable to the advertised mortgage. The consent further states that Low VA Rates misrepresented the existence, nature or amount of cash or credit available to consumers, and used misleading rhetorical questions, in connection with advertised mortgages. According to the consent, Low VA Rates advertisements also failed to properly disclose, when required by Regulation Z, credit terms for the advertised mortgage, such as the amount of each payment and time period of payments associated with consumers' repayment obligations over the full term of the loan. The consent also states that Low VA Rates' advertisements also misleadingly indicated that its mortgage products could help consumers eliminate debt. The consent order requires Low VA Rates to pay a civil money penalty of $1,800,000 to the Bureau and imposes requirements to prevent future violations. To prevent future violations, the consent order requires Low VA Rates to bolster its compliance functions by designating an advertising compliance official who must review its mortgage advertisements for compliance with mortgage advertising laws prior to use. The consent order also prohibits Low VA Rates from making misrepresentations like those identified by the Bureau through its investigation, and requires Low VA Rates to comply with certain enhanced disclosure requirements. In agreeing to the consent order, Low VA Rates did not admit that its conduct violated the law.