Maryland Mortgage Lender Fined $2M For Deception, Kickbacks

ANNAPOLIS, Md. (AP) -- A Maryland mortgage lender chaired by a former Naval Academy superintendent has been fined $2 million by federal regulators for deceiving veterans and paying kickbacks.

The Consumer Financial Protection Bureau announced the consent order involving NewDay Financial LLC of Fulton last week.

NewDay is chaired by Retired Rear Adm. Thomas Lynch. He was superintendent of the Naval Academy from 1991 to 1994.

Lynch tells The Capital of Annapolis that as soon as NewDay became aware of the situation, it worked with the bureau to resolve it.

The bureau says NewDay failed to disclose it was paying the Veterans of Foreign Wars $15 to $75 for each VFW member who contacted the company and initiated certain paperwork.

The bureau says NewDay also made undisclosed payments to an unidentified broker company.

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