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Lender fined $500K for misleading and alarming pitches

Posted by: Alejandra Matos under Businesses in hot water, Buyer beware Updated: August 28, 2013 - 11:52 AM

Nations Lending Corporation, a mortgage originator based in Ohio, was fined $500,000 for sending advertisements that claimed they were coming from a government agency and created a false sense of urgency.

The Minnesota Department of Commerce found some advertisements used prominent images of Mount Rushmore, stating “this loan is guaranteed by the federal government." Some used  “prominent” references to the ads as a “Federal Relief Advisory” or fonts similar to "a historic government document."

The majority of the fine, $450,000, was stayed so long as Nations Lending Corporation’s advertisements comply with state statutes.

To see the full enforcement order click here. Attached below is a copy of one of the advertisements, sent to Whistleblower by the Department of Commerce.

Nations Lending Corporation Letter

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