Migliaccio & Rathod LLP is currently investigating Nationwide Equities Corporation for potentially false representations made in promotional materials for their reverse mortgage loan offerings. On April 30, 2021, the Federal Consumer Financial Protection Bureau (“CFPB”), who regulates the Nationwide Equities Corporation, reached a settlement with the reverse mortgage lender for various violations of the law. The CFPB’s website provides further insight into the allegations and exposed violations, stating “The Bureau found that NWEC sent direct mail solicitations and other marketing communications to hundreds of thousands of older borrowers that violated the Mortgage Acts and Practices Advertising Rule (MAP Rule) and Regulation Z, which implement the Truth in Lending Act.” The CFPB settlement required Nationwide Equities to pay a civil penalty of $140,000 for their allegedly deceptive marketing practices. Additionally, the settlement enjoined NWEC from the allegedly deceptive business practices and provided that it develop a system which includes an official who monitors their compliance with consumer protection laws going forward.
In the consent order of this suit, also found on CFPB’s website linked above, the CFPB alleged that Nationwide Equities “sent [ ] older homeowners and financial professionals hundreds of thousands of advertisements that violate federal law because they are misleading.” These allegedly egregious misrepresentations, the CFPB went on to clarify, included inaccuracies in “the amount of fees, costs, and conditions associated with the reverse mortgage loan it was offering” which were “therefore likely to affect consumers’ conduct or decisions regarding such loans.”
This settlement enjoined Nationwide Equities from continuing such conduct, but did not include any benefits for the customers who were directly and negatively impacted by the practices. Therefore, we are investigating the possibility of bringing forward class action claims to hold Nationwide Equities accountable directly to their customers.
Have you taken out a reverse mortgage from Nationwide Equities Corporation following exposure to their misleading promotional materials and representations?
If so, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.
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The lawyers at Migliaccio & Rathod LLP have years of experience in class action litigation against large corporations, including in cases involving unfair and deceptive trade practices. More information about our current cases and investigations is available on our blog.