Consumer complaint received 2019-11-20
Company: Chrysalis Holdings LLC
State: MI
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Dear CFPB, Please find my complaint against New Day USA, which is a TRADE name registered on XX/XX/XXXX by New Day Financial LLC, a Delaware Corporation located at XXXX XXXX XXXX XXXX DE New Day USA falsely poses as a " mortgage lender '' while NewDay USA does not have a Corporate Registration in Maryland ; or in Delaware or in MI where they offered adjustable rate loans. 

NewDay USA TRADEMARK was created by NewDay Financial LLC to avoid criminal penalties for predatory and deceptive lending practices ; mortgage fraud, kickbacks, identity theft, harassment and money laundering. In Michigan NewDay USA is listed as " assumed business name '' for NewDay Financial LLC while NewDay USA has no separate registration to conduct lending business in Michigan. 

During last week I was literally bombarded by refinancing offers from New Day USA impersonating as a " VA approved Lender '' and picture of Rare Admiral XXXX who purportedly personally signed these letters ( with his printed in blue ink signature ). Which is already a deception. 

The letter has a very attractive offer to get a huge cashout - {$54000.00} for my $ XXXX loan, significantly reduce my principal monthly payments, put thousands in the bank for my family and future, with minimal documents. 

In reality, Admiral XXXX operates the same mortgage fraud for a large investment bank who pays kickback to smaller predatory lenders to push borrowers in defaults. 

In XXXX Big Banks advertised adjustable rate loans with huge cash outs in the same manner. When borrowers were lured in such loans and were not able to repay it, Banks blamed borrowers for " buying too much house '' and " use house as ATM ''. 

This is exactly that Admiral XXXX does - sells veterans too much house, under adjustable rate ; and urge to use their homes as ATM with a guaranteed default. 

New Day USA do not disclose that this is an adjustable rate refinancing. It stated in a very hard to read font on the back of the letter, almost impossible to read, that " your total finance charges over the life of the loan may be  higher '' - in other words, change unexpectably. 

According to Admiral XXXX, my " prescreened offer is based on information in your credit report '' I never gave Adm. XXXX any permission to pull my credit report ; and even myself I can not get information for my credit report without verifying my identity and my SSN. 

Adm. XXXX failed to disclose the source of my information. I assume he stole my identity using kickbacks to major credit agencies. 

Worth to mention, New Day USA is swamped with regulatory complaints for fraud and deceptive business practices. 

In XXXX New Day USA was kicked out from New York lending market for cheating on exams. In XXXX CFPB filed a consent order to cease deceptive business practices and kickbacks, resulted in {$2.00} million penalties in XXXX XXXX XXXX issued a warning to New Day USA to stop deceiving veterans with predatory loans. 

But mortgage fraud and money laundering mill by Big Banks who use companies like New Day USA to issue bogus derivatives and credit default swaps is so lucrative and attractive that even Admirals join the force. 

I respectfully demand investigation against New Day USA fraudulent and deceptive business practices ; revoke their license and permission to issue ANY loans to Veterans ; ban them from Michigan ; order to compensate veterans for harassment and deceptive practices and disclose where New Day USA got my personal information and provide me a copy of their valid corporate registration to legitimately conduct lending business in Michigan and in Maryland where New Day USA is purportedly located.

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation