Recently, there has been talk of mortgage companies recieving warnings for their deceptive advertising that has been targeted at older Americans and Veterans. We’ll look at what has gotten companies in trouble and we’ll let you know how you can find the right mortgage company for you.
On November 19, the Consumer Financial Protection Bureau released a statement that said,
“Today the Consumer Financial Protection Bureau (CFPB), in partnership with the Federal Trade Commission (FTC), is issuing warning letters to approximately a dozen mortgage lenders and mortgage brokers advising them to clean up potentially misleading advertisements, particularly those targeted toward veterans and older Americans. The CFPB also announced it has begun formal investigations of six companies that it thinks may have committed more serious violations of the law.”
Things the CFPB reported as “problems” in the advertisements included:
- Making a mortgage company look as if it is affliated with the government.
- Misleading information about mortgage rates.
- Language about reverse mortgages that isn’t true or stretches the truth.
- Fake information about the amount of cash or credit that a person has access to.
Here at Creekside Mortgage, Inc., compliance is of our upmost concern and we carefully review all of our publications to assure that they are accurate, concise and contain all the necessary information. However, we know that not everyone will choose to do their loan with us, so we want to give some advice.
When shopping around for a VA home loan or a mortgage company to complete the transaction, utilize these tips to make sure you are making the best decision for you:
- Ask questions. If you don’t understand something, talk to your mortgage professional. They should be able to explain what you don’t understand, and they should be willing to sit down with you to go over all of your options.
- Be aware of the fact that no company is affliated with the government. Getting a VA loan just means that you are getting a loan that is guaranteed by the VA, not that your funding is coming from the government. So beware of companies who make it appear as if they have been approved by the VA.
- Do research. The more you know about loan programs and the current happenings in your housing market, the more equipped you will be to notice anything that isn’t right about your VA loan.
- Take advertising with a grain of salt. Does it sound too good to be true? It might be.
- Look into each company that you consider doing your loan with. How are their reviews? Do a Google search and find out just what people are saying about them.
Trying to fund the purchase or refinance of your home can be stressful. However, with a little research, you’ll be sure to find a program that you are comfortable about.
For a free consultation, call Creekside Mortgage, Inc. at 360.571.LOAN (5626).
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