The CFPB charged a non-depository mortgage company and its managing executives for knowingly engaging in unlawful mortgage-origination activities.

In a complaint filed in the U.S. District Court for the District of Connecticut, the CFPB alleged that the company's policies enabled employees to (i) require the submission of documents for verification prior to the issuance of a consumer loan estimate, in violation of the Truth in Lending Act and Regulation Z, and (ii) deny credit to consumers on the basis of consumer report information or in response to a mortgage application without providing "adverse action" notice to the consumer, as required by the Fair Credit Reporting Act and Equal Credit Opportunity Act. The CFPB also alleged that the company's employees repeatedly provided consumers with false statements or omitted material information in consumer communications. Finally, the CFPB alleged that the company illegally used unlicensed employees to carry out mortgage-origination activities requiring a license under the Secure and Fair Enforcement for Mortgage Licensing Act.

The CFPB is seeking injunctions against the defendants, damages, consumer redress, disgorgement of ill-gotten gains and civil money penalties.

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