I am not a customer of Patriot Home Mortgage, I received an advertising mortgage offer from Patriot Home Mortgage posing as my actual mortgage lender who issued my loan.
I received an advertisement posing as my mortgage lender ( I currently have a VA mortgage on my house ) on XX/XX/2021. The view window of the letter piggybacks on the title of the lender of my closing so that I think the letter is an official communication from my lender. The advertisement came from Patriot Home Mortgage NMLS ID # XXXX. The concern I have that I wanted to bring to the attention of the CFPB was the misleading reference to a " Fixed Rate '' that doesn't follow my understanding of the CFPB rules for advertising that I have included references for.
The advertisement presents a " New 30-Year Fixed Rate '' of 1.75 % /2.433 % * APR.
Not until the fine print at the bottom of the page does the ad detail in very small print that the " fixed '' rate is in fact an ARM, it does not indicate that the rate is subject to future increases, but mainly the advertisement does not follow CFPB regulations that I've copied in the below link and pasted the subsection below relating to points A and B. The footnotes do detail that the rate is fixed for 3 years. I am a veteran and I work in finance and I found this to be predatory and/or deceptive.
I have attached a screenshot of the picture of the letter blocking out my identifiable information, if more information is needed I can be contacted.
Referenced material : https : XXXX # XXXX ( 1 ) Misleading advertising of fixed rates and payments. Using the word fixed to refer to rates, payments, or the credit transaction in an advertisement for variable-rate transactions or other transactions where the payment will increase, unless : ( i ) In the case of an advertisement solely for one or more variable-rate transactions, ( A ) The phrase Adjustable-Rate Mortgage, Variable-Rate Mortgage, or ARM appears in the advertisement before the first use of the word fixed and is at least as conspicuous as any use of the word fixed in the advertisement ; and ( B ) Each use of the word fixed to refer to a rate or payment is accompanied by an equally prominent and closely proximate statement of the time period for which the rate or payment is fixed, and the fact that the rate may vary or the payment may increase after that period ;