New Day Financial, LLC
vs. 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.