CFPB Issues Enforcement Action Against Mortgage Company for “Bait-And-Switch” Scheme

08/12/2014
Article

On August 12th, the CFPB announced that it was issuing enforcement actions against Amerisave Mortgage Corporation, its affiliate, Novo Appraisal Management Company, and the owner of both companies, Patrick Markert, for engaging in a deceptive “bait-and-switch” mortgage-lending scheme.

According to the Bureau, Amerisave deceptively advertised low interest rates that were not available, required consumers to schedule and give payment authorization information for costly appraisals before providing consumers with a GFE, failed to properly disclose its affiliate relationship, and charged unfairly inflated prices for services through its affiliate.

Per the Bureau's enforcement action, Amerisave and Novo will provide $16.8 million in refunds to harmed consumers and pay a $6.5 million penalty. Patrick Markert, as an individual, will pay an additional $3.5 million penalty.

Read more here.

Read the consent order here.

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