mvolkova@imfpubs.com

Scrutiny of the Consumer Financial Protection Bureau has become a norm for Democrats on Capitol Hill these days. Sixteen Democratic senators — led by Catherine Cortez Masto (NV) — have asked the bureau why recent enforcement actions against lenders for deceptive mailers relating to VA loans have not resulted in restitution to consumers.

Between July and September, the bureau entered into consent orders with eight VA lenders over deceptive marketing practices. Overall, the agency assessed $2.8 million in civil penalties but provided no restitution to harmed consumers.

In all eight cases, the bureau found the originators guilty of violating the Consumer Financial Protection Act, the Mortgage Acts and Practices Advertising Rule, and Regulation Z.

“It appears that the bureau has departed from the well-established procedure and the legal standard of restitution,” the senators said in a recent letter to CFPB Director Kathy Kraninger. For the full story, see Inside FHA/VA Lending, now available online.