CFPB
New Day Financial, LLC
August 29, 2024
Summary
The CFPB issued a consent order against New Day Financial, LLC (NewDay USA), a nonbank direct mortgage lender specializing in VA loans, for deceptive acts under the Consumer Financial Protection Act by consistently misstating in borrower net-benefit worksheets how the borrower's previous monthly mortgage payment compared with the new payment after a cash-out refinance in North Carolina, Maine, and Minnesota. The order requires NewDay USA to come into compliance and pay a $2.25 million civil money penalty.
AI-generated summary · Oct 23, 2026. Verify with your compliance counsel before acting.
How this was generated
We record the exact prompt, model, and output for every AI response so it can be audited for accuracy.
New Day Financial, LLC
On August 29, 2024, the Bureau issued an order against New Day Financial, LLC (NewDay USA), a nonbank direct mortgage lender headquartered in West Palm Beach, Florida, specializing in offering mortgage loans guaranteed by the United States Department of Veterans Affairs. Since at least 2015, NewDay USA has provided cash-out refinance loans to consumers, including veterans and active-duty members, many of whom had lower than average credit scores and carry consumer debt. Certain states in which NewDay USA offered its cash-out refinances required lenders to complete a borrower “net benefit” analysis worksheet showing the financial benefit of a refinance to a borrower. The Bureau found that NewDay USA engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010 by consistently misstating in the net benefit worksheets provided to borrowers in North Carolina and Maine up through 2020, and Minnesota up through 2018, how borrowers’ “previous” monthly mortgage payment would compare to the “new” monthly mortgage payment after refinancing with NewDay USA. The order requires NewDay USA to come into compliance and pay a $2.25 million civil money penalty.
Related documents
Press release
Case Docket
Page last modified Aug. 29, 2024 @ 06:06 PM EDT
Action Details
Forum
- Administrative Proceeding
Docket number
2024-CFPB-0008
Initial filing date
AUG 29, 2024
Products
- • Mortgage Origination
Source: https://www.consumerfinance.gov/enforcement/actions/new-day-financial-2024/
Common questions
- What does "New Day Financial, LLC" cover?
- The CFPB issued a consent order against New Day Financial, LLC (NewDay USA), a nonbank direct mortgage lender specializing in VA loans, for deceptive acts…
- Which agency issued this update?
- This update was issued by CFPB.
- When was it published?
- It was published on August 29, 2024.