Agency: Washington State Department of Financial Instituti
On July 10, 2018, Prime Choice Funding, Inc. and its Owner, Keith McKay, voluntarily entered into a Consent Agreement with the Washington Department of Financial Institutions (WDFI) to resolve an investigation into the company’s ad practices. The WDFI charged the company with multiple violations of the Mortgage Broker Practices Act (MBPA), including numerous counts of false, deceptive, and misleading advertising. The company and McKay entered into a consent order in February 2017 where they agreed to comply with the MBPA. However, since the 2017 Order, the WDFI alleges the company‘s solicitations to Washington consumers continued to violate the MBPA, the Consumer Loan Act (CLA), and 2017 Order.
PCFI agreed with the findings of the WDFI and has agreed to the following:
- Cease all advertising in Washington.
- Make sure that future advertising complies with the CLA, and if licensed by the Department under the MBPA, with the MBPA.
- Retain an in-house compliance manager, within 60 days of the Order, to review all advertising for compliance with the law prior to distribution in Washington, and retain records of the review and approval.
- Undergo 2 limited-scope advertising compliance examinations within 4 years of the order to ascertain compliance with the Consent Order and law.
In addition, the Order imposes four-year stayed revocations on the company Consumer Loan Company and Mortgage Loan Origination licenses, a stayed prohibition from industry statute, and a partially stayed fine. The company will have to pay $100,000 of the $200,000 fine to the WDFI, as well as a $10,000 investigation fee. If the company violates the order, all stayed actions can be lifted by the Department and other legal actions may be taken.
The case information is available here.
Date of Action: 7/10/2018