American Advisors Group
On October 8, 2021, the Bureau filed a lawsuit and proposed stipulated final judgment and order in the United States District Court for the Central District of California against American Advisors Group (AAG), which the court entered on October 25, 2021. AAG, based in Irvine, California, is the nation’s largest provider of reverse mortgages. In 2016, the Bureau issued an administrative consent order against AAG to address the Bureau’s finding that AAG used deceptive advertisements, including falsely claiming that consumers could not lose their homes. In this action, the Bureau alleged that in marketing its reverse mortgage product, AAG inflated consumers’ estimated home values to entice them to enter into negotiations to open a reverse mortgage with the company and falsely reassured consumers that AAG made “every attempt to ensure the home value information provided is reliable,” when in fact it did not. The Bureau alleged that this conduct was deceptive under the CFPA and violated the Bureau’s 2016 consent order. The stipulated final judgment and order requires AAG to pay $173,400 in consumer redress, stop its unlawful conduct, and pay a $1,100,000 civil money penalty.
Related documents
Stipulated Final Judgment and Order