On July 24, 2020, the CFPB announced the issuance of consent orders against Sovereign Lending Group, Inc. (Sovereign) and Prime preference Funding, Inc. (Prime Choice).

The CFPB suggested inside their statement why these consent sales originated from a range investigations by the CFPB into organizations allegedly making use of misleading mail that is direct to promote VA assured mortgages. Both consent requests allow for civil cash charges, with Sovereign ordered to pay for $460,000 and Prime solution ordered to cover $645,000.

Both consent requests assert violations of installment loans in Texas Regulation Z in addition to Mortgage Acts and Practices—Advertising Rule (the “MAP Rule” or Regulation N), and Title X associated with Dodd-Frank Act (the customer Financial Protection Act) for Sovereign’s and Prime Choice’s marketing of VA mortgages to service users and veterans dating back to to January 1, 2016. Read more