An online operation in the business of finding potential borrowers for mortgage companies will pay a
"Buying a home is one of the most important financial decisions a consumer can make," said
The FTC charged that GoLoansOnline.com, a
Unlike fixed-rate mortgages, adjustable-rate mortgages carry an interest rate that fluctuates based on credit markets, so the cost to borrowers can increase and decrease over the course of the loan.
The complaint charges GoLoansOnline.com with violating the Federal Trade Commission Act and the Mortgage Acts and Practices Advertising Rule, or "MAP" Rule and Regulation N, by deceptively advertising variable interest rate mortgages as having fixed interest rates.
It also charges the company with violating the Truth in Lending Act and Regulation Z by advertising false credit terms; failing to disclose the annual percentage rate and whether it will increase after the loan is made; advertising variable-rate mortgages as fixed-rate mortgages; and stating a payment amount without making required disclosures. Under the Truth in Lending Act, when advertisers state a payment amount, they also are required to disclose the amount of the downpayment or its percentage of the payment amount; the terms of the repayment, including repayment obligations over the full term and any required balloon payment; and the annual percentage rate.
Under the terms of the settlement, in addition to paying the
* misrepresenting the terms and conditions of any financial product or service, and any term or condition of a mortgage credit product,
* assisting others to misrepresent any material fact about a mortgage credit product;
* disclosing, selling, or transferring consumer data; and
* violating the Federal Trade Commission Act; the MAP Rule and Regulation N; and the Truth in Lending Act and Regulation Z.
For consumer information about mortgages, see Homes and Mortgages.
The Commission vote to authorize the staff to refer the complaint to the
NOTE: The Commission authorizes the filing of a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Consent decrees have the force of law when signed by the District Court judge.
TNS 30FurigayJof-140509-4730710 30FurigayJof
Most Popular Stories
- Sutherland Responds to 'Unprofessional' Jibe
- Florida Warns Beach-goers About Flesh-eating Bacteria
- Business Leaders Set for CHCC Convention
- DishLATINO Wins Hispanic TV Award
- Twitter's Stock Rises on Stellar Revenues
- Ebola Outbreak Strikes Fear in Minnesota
- Judge Orders Kurdistan Oil Seized
- Beyonce Seen Apartment Shopping in NYC Without Jay Z
- Is California Going to Land Tesla's Battery Plant?
- U.S. Consumer Confidence at Strongest Since 2007