OLYMPIA – The Washington State Department of Financial Institutions (DFI) joined regulators from 11 other states entering into a legal settlement with Rocket Mortgage, LLC (formerly known as Quicken Loans, LLC). The settlement follows a multi-state investigation led by DFI addressing advertising practices believed to be in violation of federal advertising laws. The settlement requires Rocket Mortgage to pay a penalty of $500,000 to the participating states and establishes improved advertising standards going forward. The improved advertising standards require Rocket Mortgage to clearly and conspicuously disclose discount points associated with the advertised interest rate and the dollar cost consumers must pay to obtain the discounted interest rate. Rocket Mortgage has also agreed to cease certain advertising practices regarding adjustable rate mortgages that the participating states contended may be false, deceptive, and misleading to consumers. The settlement also requires Rocket Mortgage to update telemarketing scripts used by mortgage loan originators to remove talking points that the participating states asserted violate federal law.
WA DFI previously entered into a Consent Order in 2016 with Rocket Mortgage in resolution of a Statement of Charges regarding advertising practices. This new settlement goes further, requiring specific improved advertising standards be met and includes significant penalties that may be imposed if the standards are not met. Enforcement actions like this should serve as an important reminder to financial service providers that DFI will continue to monitor compliance and will take additional enforcement action when needed to ensure compliance with advertising laws.
“Washington will not tolerate false, deceptive, or misleading advertising that harms consumers or fair competition,” DFI Director Charlie Clark said. “This settlement also demonstrates how state regulators can work together to hold companies like Rocket Mortgage accountable, to ensure consumers receive information needed to make informed financial decisions, and to ensure fair competition in the marketplace.”