Reverse mortgage lenders pay for deceptive ads

The CFPB has announced that consent orders have been issued to three reverse mortgage companies — American Advisors Group, Reverse Mortgage Solutions, and Aegean Financial — for deceptive advertisements, including claiming that consumers could not lose their homes. The orders require the companies to cease deceptive advertising practices, implement systems to ensure they are complying with all laws, and pay penalties. The Mortgage Acts and Practices Advertising Rule prohibit misleading claims in mortgage advertising. In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act prohibits institutions from engaging in deceptive acts or practices, including with regard to advertising of consumer financial products or services. Civil money penalties were also assessed.

• American Advisors Group consent order with $400,000 penalty
• Reverse Mortgage Solutions consent order with $325,000 penalty
• Aegean Financial consent order with $65,000 penalty