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As more veterans begin to purchase new homes, an alarming trend by mortgage lenders and brokers continue, as they take unfair advantage of veterans with misleading advertisements.
The Consumer Financial Protection Bureau in partnership with the Federal Trade Commission is issuing warning letters to approximately a dozen lenders and brokers advising them to clean up these misleading advertisements. The CFPB has begun formal investigations of six companies that have committed more serious violations of the law. The CFPB and FTC share enforcement authority and are particularly focused on ads targeting older Americans and veterans.
Actions stem from a joint “sweep,” a review conducted by the CFPB and the FTC of about 800 randomly selected mortgage related ads across the country, including ads for mortgage loans, refinancing and reverse mortgages. The agencies looked at public facing ads in newspapers, on the Internet and from mail solicitations. The CFPB is looking for potential violations of the 2011 Mortgage and Practices Advertising Rule, which prohibits claims that mislead in regards to interest rates, fees, costs, loan payments and the amount of cash or credit available to the veteran.
The FTC, meanwhile, is examining ads by home builders, realtors and lead generators. The FTC is issuing its own warning letters to about a dozen companies and continuing with its own investigations of even more companies. A copy of the FTC’s press release is available at www.ftc.gov/opa/index.shtml.
The “sweep” identified problems such as misrepresentation about government affiliations, by using official looking seals, logos, or having characteristics that may be interpreted as indicating a government affiliation. Some ads promote low rates that mislead veterans about the terms of the loan. Also, reverse mortgage claims, that a veteran will have no payments, even though with a reverse mortgage loan, they must make monthly or other periodic tax or insurance payments or risk default if the payment isn’t made.
These warning letters being sent, are advising veterans that the identified lenders may be violating federal laws and that they should carefully review all the information. Warning letters from the CFPB to veterans and servicemembers can be found at http://files.consumerfinance.gov/f/201211_cfpb_generic_warning_letter_veterans.pdf. Taking a little time and carefully investigating your options will help avoid this dilemma.
Hope everyone enjoyed a bountiful Thanksgiving with loved ones.
AMVETS welcomes new members, Zack McClary, Mike Brown, Doc Roberts, Melody Gersbach, Delores diPritore, Kent Olson, Earl Bryan, James Sain, Dennis Robertson, John Cox, John Bob Waldrup, Matt James, Ronnie Walker, Mary Devitt, Stephen Bessent, Robin Dempsey, Sandra Banks and Wesley Banks, all joining Veterans Day weekend.
Reach Jim Vines at jim.helpingveterans@gmail.com.
Viewpoints
COLUMN: Veteran's Corner
- Viewpoints
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Letters to the Editor – May 23, 2013
America is being destroyed by voter fraud and the buying of votes by the followers of Karl Marx.
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CNHI EDITORIAL: Seizure of AP phone records an insult to independent press
Distrust of government secrecy has been elevated to an exceptional level with the disclosure the Justice Department covertly examined two months of Associated Press phone records to determine who leaked details to the AP about a foiled terrorist plot.
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NOW HEAR THIS: ‘What we’ve got here is a failure to communicate’
This famous quote addressing communication failure is a classic line from the 1967 movie “Cool Hand Luke,” starring Paul Newman. Strother Martin, who played the role of the warden in a southern prison, would use this phrase every time he gave Luke a good whack with his baton. The concept resonated so well with moviegoers that it was voted No. 11 of the 100 all-time favorite movie quotes according to the American Film Institute.
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Letters to the Editor – May 19, 2013
Do you remember the “MISSION ACCOMPLISHED” sign that the personnel on the USS Abraham Lincoln displayed to greet President Bush when he went out to greet them?
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Guest opinion: Campaign with honor
All politics is local and personal! I hope that you and your family have a wonderful summer, filled with relationship building experiences and times of relaxation. As you do all the things that re-charge us for the next round at work and involvement in community and political activities, let’s reflect on the 2013 local elections for a moment.
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TISCIONE: Woe for calling evil good
You don’t often see “woe” used in an article. It’s a word that has fallen out of usage in our day. But it’s a word that ought to be understood and taken seriously.
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Letters to the Editor – May 17, 2013
As mercury pollution threatens our waterways and carbon pollution-fueled climate change worsens extreme weather, we need someone in Washington who knows how to get things done.
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Letters to the Editor – May 15, 2013
I just wanted to express my heartfelt thanks to the slobs, idiots and inconsiderate people who continually decorate the beautiful Texas landscape with their trash. I guess it’s really a form of art with beer bottles and cans, boxes, plastic drink containers, food packaging and just about anything else you can think of. It just doesn’t appeal to me. Thank you.
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NOW HEAR THIS: Not by the hairs of my chinny chin chin
I had never really considered this possibility, but every one of the Three Little Pigs was almost certainly a guy. I know that assumption is not particularly popular from an equal opportunity standpoint, but the fact is fairly certain. How do I know? They all three had hair on their chinny chin chins.
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ESTES: Securing a bright future for Texas
Texas businesses have created more than 500,000 jobs since November 2011. Our economy is growing nearly 50 percent faster than the rest of the country and our cost of living remains low.
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Letters to the Editor – May 23, 2013
Texas Students Coach Teachers on Fitness
New Forecasting Tool Eyed for Hurricane Season
Meet MJ, the Bike Riding Tabby Cat
Britain Attack Believed Linked to Radical Islam
Raw: Kevin Durant Tours Moore After $1M Pledge
Weiner Launches Bid to Become NYC Mayor
Okla. Teens Get Video of Deadly Tornado Overhead
Man Shot While Questioned in Boston Probe
School Storm Protection Spotty in Tornado Zones
9-year-old Tornado Victim Loved Family, Singing
Moore Native Toby Keith Tours Tornado Damage
Oklahoma Survivors, Heroes Survey Damage
Okla. City Mayor: Up to 13K Homes Hit by Tornado
Raw: Aftermath of Deadly Attack in London
Paperless Scanner, Vision of the Future
Florida FBI Shooting Has Boston Bombing Links
Garcetti Elected Los Angeles Mayor Over Greuel
Raw: New Video of Deadly Oklahoma Tornado
IRS Official Pleads 5th Amendment
Lawyer: Feds Investigating Susan Powell Case
