Lender pays $2M for deceptive mortgage advertising, kickbacks
Consumer Financial Protection Bureau took action against NewDay Financial for deceptive mortgage advertising and kickbacks, making the lender pay a $2 million civil money penalty for its actions.
NewDay is a Maryland-based, nonbank mortgage lender owned by Chrysalis Holdings, a private company. Its primary business is originating refinance mortgage loans guaranteed by the Veterans Administration, which is mainly advertises for through direct mail campaigns. Between July 2011 and July 2014, NewDay sent consumers over 50 million mortgage solicitations by postal and electronic mail.