USA v. Intermundo Media, LLC

Filing 6

Stipulated ORDER for Permanent Injunction and Civil Penalty Judgment. Plaintiff United States of Americas Unopposed Motion to Enter Stipulated Order ECF No. 4 is GRANTED, by Judge Wiley Y. Daniel on 10/7/2014. (evana, ) (Additional attachment(s) added on 10/7/2014: # 1 Attachment A) (evana, ).(Modified on 10/7/2014 Added attachment A to the docket entry)(evana, ).

Attachment A

Pt. 1014

12 CFR Ch. X (1–1–14 Edition)

iii. Rearranging the sequence of the nonsegregated disclosures.
iv. Incorporating certain state ‘‘plain
English’’ requirements.
v. Deleting or blocking out inapplicable
disclosures, filling in ‘‘N/A’’ (not applicable)
or ‘‘0,’’ crossing out, leaving blanks, checking a box for applicable items, or circling applicable items (this should facilitate use of
multipurpose standard forms).
vi. Adding language or symbols to indicate
estimates.
vii. Adding numeric or alphabetic designations.
viii. Rearranging the disclosures into
vertical columns, except for § 1013.4(b)
through (e) disclosures.
ix. Using icons and other graphics.
3. Model closed-end or net vehicle lease disclosure. Model A–2 is designed for a closed-end
or net vehicle lease. Under the ‘‘Early Termination and Default’’ provision a reference
to the lessee’s right to an independent appraisal of the leased vehicle under § 1013.4(l)
is included for those closed-end leases in
which the lessee’s liability at early termination is based on the vehicle’s realized
value.
4. Model furniture lease disclosures. Model A–
3 is a closed-end lease disclosure statement
designed for a typical furniture lease. It does
not include a disclosure of the appraisal
right at early termination required under
§ 1013.4(l) because few closed-end furniture
leases base the lessee’s liability at early termination on the realized value of the leased
property. The disclosure should be added if it
is applicable.
[76 FR 78502, Dec. 19, 2011, as amended at 76
FR 81790, Dec. 29, 2011; 77 FR 8722, Feb. 15,
2012; 77 FR 69736, Nov. 21, 2012; 78 FR 70194,
Nov. 25, 2013]

PART
1014—MORTGAGE
ACTS
AND PRACTICES—ADVERTISING
(REGULATION N)
Sec.
1014.1 Scope of regulations in this part.
1014.2 Definitions.
1014.3 Prohibited representations.
1014.4 Waiver not permitted.
1014.5 Recordkeeping requirements.
1014.6 Actions by states.
1014.7 Severability.
AUTHORITY: 12 U.S.C. 5512, 5581; 15 U.S.C.
1638 note.
SOURCE: 76 FR 78133, Dec. 16, 2011, unless
otherwise noted.

§ 1014.1 Scope of regulations in this
part.
This part, known as Regulation N, is
issued by the Bureau of Consumer Fi-

nancial Protection to implement the
2009 Omnibus Appropriations Act, Public L. 111–8, section 626, 123 Stat. 524
(Mar. 11, 2009), as amended by the Credit Card Accountability Responsibility
and Disclosure Act of 2009, Public Law
111–24, section 511, 123 Stat. 1734 (May
22, 2009), and as amended by the DoddFrank Wall Street Reform and Consumer Financial Protection Act of 2010,
Public Law 111–203, section 1097, 124
Stat. 1376 (July 21, 2010). This part applies to persons over which the Federal
Trade Commission has jurisdiction
under the Federal Trade Commission
Act.
§ 1014.2

Definitions.

For the purposes of this part:
Commercial communication means any
written or oral statement, illustration,
or depiction, whether in English or any
other language, that is designed to effect a sale or create interest in purchasing goods or services, whether it
appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine,
pamphlet, leaflet, circular, mailer,
book insert, free standing insert, letter, catalogue, poster, chart, billboard,
public transit card, point of purchase
display, film, slide, audio program
transmitted over a telephone system,
telemarketing script, on-hold script,
upsell script, training materials provided to telemarketing firms, programlength commercial (‘‘infomercial’’), the
internet, cellular network, or any
other medium. Promotional materials
and items and Web pages are included
in the term commercial communication.
Consumer means a natural person to
whom a mortgage credit product is offered or extended.
Credit means the right to defer payment of debt or to incur debt and defer
its payment.
Dwelling means a residential structure that contains one to four units,
whether or not that structure is attached to real property. The term includes any of the following if used as a
residence: an individual condominium
unit, cooperative unit, mobile home,
manufactured home, or trailer.
Mortgage credit product means any
form of credit that is secured by real

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Bur. of Consumer Financial Protection

§ 1014.3

property or a dwelling and that is offered or extended to a consumer primarily for personal, family, or household purposes.
Person means any individual, group,
unincorporated association, limited or
general partnership, corporation, or
other business entity.
Term means any of the fees, costs, obligations, or characteristics of or associated with the product. It also includes any of the conditions on or related to the availability of the product.
§ 1014.3

Prohibited representations.

It is a violation of this part for any
person to make any material misrepresentation, expressly or by implication,
in any commercial communication, regarding any term of any mortgage
credit product, including but not limited to misrepresentations about:
(a) The interest charged for the mortgage credit product, including but not
limited to misrepresentations concerning:
(1) The amount of interest that the
consumer owes each month that is included in the consumer’s payments,
loan amount, or total amount due, or
(2) Whether the difference between
the interest owed and the interest paid
is added to the total amount due from
the consumer;
(b) The annual percentage rate, simple annual rate, periodic rate, or any
other rate;
(c) The existence, nature, or amount
of fees or costs to the consumer associated with the mortgage credit product,
including but not limited to misrepresentations that no fees are charged;
(d) The existence, cost, payment
terms, or other terms associated with
any additional product or feature that
is or may be sold in conjunction with
the mortgage credit product, including
but not limited to credit insurance or
credit disability insurance;
(e) The terms, amounts, payments, or
other requirements relating to taxes or
insurance associated with the mortgage credit product, including but not
limited to misrepresentations about:
(1) Whether separate payment of
taxes or insurance is required; or
(2) The extent to which payment for
taxes or insurance is included in the

loan payments, loan amount, or total
amount due from the consumer;
(f) Any prepayment penalty associated with the mortgage credit product,
including but not limited to misrepresentations concerning the existence,
nature, amount, or terms of such penalty;
(g) The variability of interest, payments, or other terms of the mortgage
credit product, including but not limited to misrepresentations using the
word ‘‘fixed’’;
(h) Any comparison between:
(1) Any rate or payment that will be
available for a period less than the full
length of the mortgage credit product;
and
(2) Any actual or hypothetical rate or
payment;
(i) The type of mortgage credit product, including but not limited to misrepresentations that the product is or
involves a fully amortizing mortgage;
(j) The amount of the obligation, or
the existence, nature, or amount of
cash or credit available to the consumer in connection with the mortgage
credit product, including but not limited to misrepresentations that the
consumer will receive a certain
amount of cash or credit as part of a
mortgage credit transaction;
(k) The existence, number, amount,
or timing of any minimum or required
payments, including but not limited to
misrepresentations about any payments or that no payments are required in a reverse mortgage or other
mortgage credit product;
(l) The potential for default under
the mortgage credit product, including
but not limited to misrepresentations
concerning the circumstances under
which the consumer could default for
nonpayment of taxes, insurance, or
maintenance, or for failure to meet
other obligations;
(m) The effectiveness of the mortgage credit product in helping the consumer resolve difficulties in paying
debts, including but not limited to misrepresentations that any mortgage
credit product can reduce, eliminate,
or restructure debt or result in a waiver or forgiveness, in whole or in part, of
the consumer’s existing obligation
with any person;

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§ 1014.4

12 CFR Ch. X (1–1–14 Edition)

(n) The association of the mortgage
credit product or any provider of such
product with any other person or program, including but not limited to misrepresentations that:
(1) The provider is, or is affiliated
with, any governmental entity or other
organization; or
(2) The product is or relates to a government benefit, or is endorsed, sponsored by, or affiliated with any government or other program, including but
not limited to through the use of formats, symbols, or logos that resemble
those of such entity, organization, or
program;
(o) The source of any commercial
communication, including but not limited to misrepresentations that a commercial communication is made by or
on behalf of the consumer’s current
mortgage lender or servicer;
(p) The right of the consumer to reside in the dwelling that is the subject
of the mortgage credit product, or the
duration of such right, including but
not limited to misrepresentations concerning how long or under what conditions a consumer with a reverse mortgage can stay in the dwelling;
(q) The consumer’s ability or likelihood to obtain any mortgage credit
product or term, including but not limited to misrepresentations concerning
whether the consumer has been
preapproved or guaranteed for any such
product or term;
(r) The consumer’s ability or likelihood to obtain a refinancing or modification of any mortgage credit product
or term, including but not limited to
misrepresentations concerning whether
the consumer has been preapproved or
guaranteed for any such refinancing or
modification; and
(s) The availability, nature, or substance of counseling services or any
other expert advice offered to the consumer regarding any mortgage credit
product or term, including but not limited to the qualifications of those offering the services or advice.
§ 1014.4 Waiver not permitted.
It is a violation of this part for any
person to obtain, or attempt to obtain,
a waiver from any consumer of any
protection provided by or any right of
the consumer under this part.

§ 1014.5 Recordkeeping requirements.
(a) Any person subject to this part
shall keep, for a period of twenty-four
months from the last date the person
made or disseminated the applicable
commercial communication regarding
any term of any mortgage credit product, the following evidence of compliance with this part:
(1) Copies of all materially different
commercial communications as well as
sales scripts, training materials, and
marketing materials, regarding any
term of any mortgage credit product,
that the person made or disseminated
during the relevant time period;
(2) Documents describing or evidencing all mortgage credit products available to consumers during the time period in which the person made or disseminated each commercial communication regarding any term of any
mortgage credit product, including but
not limited to the names and terms of
each such mortgage credit product
available to consumers; and
(3) Documents describing or evidencing all additional products or services
(such as credit insurance or credit disability insurance) that are or may be
offered or provided with the mortgage
credit products available to consumers
during the time period in which the
person made or disseminated each commercial communication regarding any
term of any mortgage credit product,
including but not limited to the names
and terms of each such additional product or service available to consumers.
(b) Any person subject to this part
may keep the records required by paragraph (a) of this section in any legible
form, and in the same manner, format,
or place as they keep such records in
the ordinary course of business. Failure to keep all records required under
paragraph (a) of this section shall be a
violation of this part.
§ 1014.6 Actions by states.
Any attorney general or other officer
of a state authorized by the state to
bring an action under this part may do
so pursuant to section 626(b) of the 2009
Omnibus Appropriations Act, Public
Law 111–8, section 626, 123 Stat. 524
(Mar. 11, 2009), as amended by the Credit Card Accountability Responsibility
and Disclosure Act of 2009, Public Law

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Bur. of Consumer Financial Protection

§ 1015.2

111–24, section 511, 123 Stat. 1734 (May
22, 2009), and as amended by Public Law
111–203, section 1097, 124 Stat. 2102 (July
21, 2010).
§ 1014.7 Severability.
The provisions of this part are separate and severable from one another. If
any provision is stayed or determined
to be invalid, it is the Bureau of Consumer Financial Protection’s intention
that the remaining provisions shall
continue in effect.

PART 1015—MORTGAGE ASSISTANCE RELIEF SERVICES (REGULATION O)
Sec.
1015.1 Scope of regulations in this part.
1015.2 Definitions.
1015.3 Prohibited representations.
1015.4 Disclosures required in commercial
communications.
1015.5 Prohibition on collection of advance
payments and related disclosures.
1015.6 Assisting and facilitating.
1015.7 Exemptions.
1015.8 Waiver not permitted.
1015.9 Recordkeeping and compliance requirements.
1015.10 Actions by states.
1015.11 Severability.
AUTHORITY: 12 U.S.C. 5512, 5581; 15 U.S.C.
1638 note.
SOURCE: 76 FR 78133, Dec. 16, 2011, unless
otherwise noted.

§ 1015.1 Scope of regulations in this
part.
This part, known as Regulation O, is
issued by the Bureau of Consumer Financial Protection to implement the
2009 Omnibus Appropriations Act, Public Law 111–8, section 626, 123 Stat. 524
(Mar. 11, 2009), as clarified by the Credit Card Accountability Responsibility
and Disclosure Act of 2009, Public Law
111–24, section 511, 123 Stat. 1734 (May
22, 2009), and as amended by the DoddFrank Wall Street Reform and Consumer Financial Protection Act of 2010,
Public Law 111–203, section 1097, 124
Stat. 1376 (July 21, 2010). This part applies to persons over which the Federal
Trade Commission has jurisdiction under
the Federal Trade Commission Act.
§ 1015.2 Definitions.
For the purposes of this part:

Clear and prominent means:
(1) In textual communications, the
required disclosures shall be easily
readable; in a high degree of contrast
from the immediate background on
which it appears; in the same languages that are substantially used in
the commercial communication; in a
format so that the disclosure is distinct from other text, such as inside a
border; in a distinct type style, such as
bold; parallel to the base of the commercial communication, and, except as
otherwise provided in this rule, each
letter of the disclosure shall be, at a
minimum, the larger of 12-point type
or one-half the size of the largest letter
or numeral used in the name of the advertised Web site or telephone number
to which consumers are referred to receive information relating to any
mortgage assistance relief service. Textual communications include any communications in a written or printed
form such as print publications or
words displayed on the screen of a computer;
(2) In communications disseminated
orally or through audible means, such
as radio or streaming audio, the required disclosures shall be delivered in
a slow and deliberate manner and in a
reasonably understandable volume and
pitch;
(3) In communications disseminated
through video means, such as television or streaming video, the required
disclosures
shall
appear
simultaneously in the audio and visual parts of
the commercial communication and be
delivered in a manner consistent with
paragraphs (1) and (2) of this definition.
The visual disclosure shall be at least
four percent of the vertical picture or
screen height and appear for the duration of the oral disclosure;
(4) In communications made through
interactive media, such as the internet,
online services, and software, the required disclosures shall:
(i) Be consistent with paragraphs (1)
through (3) of this definition;
(ii) Be made on, or immediately prior
to, the page on which the consumer
takes any action to incur any financial
obligation;
(iii) Be unavoidable, i.e., visible to
consumers without requiring them to
scroll down a Web page; and

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