twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.

Mortgage Firm Ordered to Cease and Desist Deceptive Ad

Homefield Financial sent mail piece that appeared to be Calif. refund check

April 28, 2004


The mailing that arrived in the homes of 50,000 California residents sure looked like a $1,000 check.

Even the printing gave the appearance that it might be a state tax return so many workers are receiving this time of year.

But the faux check turned out to be a real ad -- one that California state regulators have clamped down on.

Homefield Financial Mortgage Loan Co. of Irvine, Calif., has been issued a cease and desist order and told by the California Controller's Office to stop mailing the deceptive ad, Garin Casaleggio, a spokesman for Controller Steve Wesley, said in a phone interview.

"The setup of the envelope appears to intentionally duplicate the appearance of envelopes issued from the State Controller's Office," according to a letter the controller mailed to the company. "Additionally, the document's 'certificate' number, fund number information, identification number, signature block, color of the document, as well as the position of the seal, are all designed in a manner similar to warrants issued by the State Controller for income tax refunds and other purposes.

"Given the deceptive nature of your company's solicitation and given the fact that your mailing does not comply with the law, you are requested to cease and desist from mailing any further ... solicitations," the state said in the letter.

The California Dept. of Corporations, which holds Homefield Financial's license to do business in the state, has also told the company to no longer send the ads to homeowners, department Shad Balch confirmed in a phone interview.

"We issued a stop order to cease doing this immediately," Balch said. "We were concerned that the advertising they were sending out clearly gave an appearance that it was a check issued from the state controller's office here in California. That's a violation of a few different laws (regarding) ...false advertising."

The company has complied and said it will no longer use the ad, Balch said.

Homefield Financial management could not be reached to comment, but the company did issue a statement to Sacramento television station KCRA.

"It was a limited test piece," the company told the station, according to a story posted on the KCRA Web site. "We realize this was not a good idea and it was discontinued voluntarily, prior to any negative reaction. We would not intentionally attempt to mislead customers. We apologize for any misunderstanding."

When homeowners called the company after receiving the ad, they received a sales pitch, regulators said.

Casaleggio said the controller's office, which signs all tax refunds in California, became involved after receiving some "random complaints" and a faxed copy of the ad. It then referred the ad to the office's lawyers.

"The way it is set up it is similar to a tax refund," Casaleggio said.

Under California law any document that is made to look like a state document or a check "needs to say, 'this is not a government document'. No way was this endorsed by a government entity," he said.

"Homefield has sent us a letter ... that they are complying," Casaleggio said.

Such ads used to be more common in California, but the comptroller's office was successful in getting legislation passed in 1997 that cracked down on deceptive ads.

Since then "such solicitations ... are not as common," Casaleggio said.

Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer. Email Patrick at: [email protected]
Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders