Associates Mortgage Company

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IN THE MATTER OF JULIAN L. LEVINSON TIA ASSOCIATES MORTGAGE COMPANY CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TRUT IN LENDING ACTS May, 1975 /Joekel C-2667. Complaint, May 1975- Decision, Consent order requiring a Hampton, Va., loan broker, among other things to cease in violating the Trth in Lending Aet hy failing to disclo e to con umers, connection with the extension of consumer credit, such information as required by Regulation Z of the said Act.

Appeamnces For the Commission: Bernrd Rowtz, Alice C. Kellehe and Thm J. Keary.

For the respondent: Robert Beale Newprt News, Va. 856 ImERAL TRADE COMMISSION DECISIONS Complaint 85 F.

COMPLAINT Pursuant to the provisions of the Federdl Trde Commission Act and of the Truth in Lending Act and the implementing reguation promulgated thereunder, and by virtue of the authority vested in it by said Acts, the Federal Trade Commssion, having reason to believe that Julian L. Levinson, an individual, trading and doing business as Assoeiates Mortgage Company, hereinafter sometimes referred to as respondent, has violated the provisions of said Acts, and the implementing regulation promulg-dated under the Trth in Lending Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent ,Iulan L. Levinson is an individual trading and doing business as ABsoeiates Mortgage Company, with his principal office and place of business located at 1517 Aberdeen Rd. and Mercur Blvd., Hampton, Va.

P AI . 2. Respondent is now, and for some time la.,t past has been, engaged as a broker in the arangig and seeurng of loans for the general public.

PAR. 3. In the ordinar course and conduct of his business as aforesaid, respondent regularly aranges for the extension of consumer credit, as "consumer credit" is defined in Reguation h, the implementing regulation of the Trth in Lending Aet, duly promulgated by the Board of Governors of the Federal Reserve System. PAR. 4. Subsequent to July 1, 1969, in the ordinary eoure of business as aforesaid, respondent's customers are provided with consumer eredit cost disclosure statements.

By and through the use of the aforesaid consumer eredit cost disclosures respondent:

1. Fails to include the broker's fee or finder's fee in the determnation of the rmanee charge, as required by Section 226.4(a)G ) of Regulation Z.

2. Fails to disclose the broker s fee or rIDder's fee as a prepaid finance charge, as required by Section 226.8(e)(I) of Reguation Z, using the term "prepaid finance charge " as required by Section 226.8( d)(2) of Reguation Z.

3. Fails to itemi the components of the finance charge, a., required by Section 226.8(d)(3) of Regulation Z. 4. Fails to disclose aceumtcly the annual percentage rate computed in accordanee with Section 226.5(b) of Regulation Z, as required by Section 226.8(b)(2) of Regulation Z.

5. Fails to print the terms "finance charge" and "annual percentage 1\NNULIATl';;S MUKl'GAGE CO 857 855 Decision and Order rate" more eonspieuously than other termnology, as required by Seetion 226.6(a) of Regulation Z.

6. Fails to disclose clearly the method of eomputing any uneared portion of the finance charge in the event of prepayment of the obligation, as required by Seetion 226.6(a) of Regulation Z. 7. Fails to identify the broker as a ereditor, as "ereditor" is defined by Seetion 226.2(m) of Reguation Z, as required by Section 226.6(d) of Reguation Z.

8. Fails to make full consumer eredit cost disclosures before the transaction is consummated, as required by Seetion 226.8(a) of Reguation Z.

PAR. 5. Pursuant to Section I03(q) of the Truth in Lending Aet respondent' s aforesaid failures to comply with the provisions of Regulation Z constitute violations of the Act and, puruant to Section 108 thereof, respondent has thereby violated the Federa Trade Commission Aet.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereto with violation of the Federal Trade Commssion Act, and the respondent having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondent and counsel for the Commission having thereafter executed an agreement contanig a consent order, an admission by the respondent of all the jursdietional facts set forth in the complaint to issue herein, a statement that the signng of said agreement is for settlement purpses only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint and waivers and other provisions as required by the Commission rules; and The Commission having considered the agreement and having provisionally aeeepted same, and the agreement eontaning eonsent order having thereupon been placed on the public record for a period of sixty (60) days, now in furher eonformty with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint in the form contemplated by said agreement, makes the following jursdietional findings, and enters the following order: 1. Respondent ,I ulan L. Levinson is an individual, traing and doing business as Associates Mortgage Company, with his office and principal place of business located at 1517 Aberdeen Rd. and Mereury Blvd. Hampton, Va.

U!)-79!) 0 - 76 - 55 ), 858 ED;;RAL TRAm: COMMISSION DECISIONS Decision and Order 85 F. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered That respondent Julian L. Levinson, an individual trading and doing business as Associates Mortgage Company, or under any other name or names, his successors and assigns, and respondent's agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with any extension or arrangement for the extension of consumer credit or advertisement to aid, promote or assist, directly or indirectly, any extension or arrangement for the extension of consumer credit, as consumer credit" and "adverlisement" are defined in Reguation Z (12 R. 9226) of the Truth in Lending Act (Pub.L. 90-321, 15 U. 91601, et seq. do forthwith cease and desist from: 1. Failing to include the broker s fee or finder's fee in the determination of the finance charge, as required by Section 226.4(a)(3) of Regulation Z.

2. Failing to disclose the broker's fee or finder s fee as a prepaid finance charge, as required by Section 226.8(e)(l) of Reguation Z, using the term "prepaid finance charge " as required by Seetion 226.8(d)(2) of Regulation Z.

3. Failing to itemize the components of the finance charge, as required by Section 226.8(d)(3) of Regulation Z. 4. Failing to disclose aeeurately the annual percentage rate computed in accordanee with Seetion 226.5(b) of Regulation Z, as required by Section 226.8(b)(2) of Reguation Z. 5. Failing to print the terms "finance charge" and "annual percentage rate" more conspicuously than other terminology, as required by Section 226.6(a) of Reguation Z. 6. Failing to disclose clearly the method of eomputing any uneared portion of the rmance charge in the event of prepayment of the obligation, as required by Seetion 226.6(a) of Reguation Z. 7. Failing to identify the broker as a ereditor, as "credtor" is defined in Seetion 226.2(m) of Reguation Z, as required by Section 226.6(d) of Reguation Z.

8. Failing to provide the borrower complete consumer eredit east disclosures before consummation of the transaction, as required Seetion 226.8(a) of Regulation Z.

9. Failing, in any consumer credit trLmsaction or advertisement, to make all disclosures, determined in aeeordanee with Sections 226.4 and 859 Decision and Order 226.5 of Regulation Z, in the manner, form and amount required by Sections 226. , 226. , 226.9 and 226.10 of Regulation Z. It is further emIRred That respondent prominently display no less than two signs on the premises which will clearly and conspicuously state that a customer must receive a complete copy of the consumer credit east disclosures, as required by the Trth in Lending Act, in any transaction which is financed, before the transaction is consummated. It is further ordered That respondent deliver a copy of this order to cease and desist to all present and future personnel of respondent engaged in the aranging for the extension of consumer eredit, and that respondent secure a signed statement acknowledging receipt of said order from each such person.

It is further ordered That the respondent named herein promptly notify the Commission of the diseontinuanee of his present business or employment and of his affiliations with a new business or employment. Such notice shall include respondent' s curent business addresses and a statement as to the nature of the business or employment in which he is engaged as well as a description of his duties and responsibilities. It is furher ardered That the respondent herein shall within sixty (60) days after serviee upon him of this order, fie with the Commission a report, in wrting, setting forth in detal the manner and form in which he has complied with this order.