[Federal Register Volume 61, Number 238 (Tuesday, December 10, 1996)]
[Notices]
[Page 65061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31266]
[[Page 65061]]
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FEDERAL TRADE COMMISSION
[File No. 932-3143]
Progressive Mortgage Corporation; Sanford Cramer; Analysis to Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair or deceptive acts or practices and unfair methods of
competition, this consent agreement, accepted subject to final
Commission approval, would require, among other things, the Ohio-based
mortgage banker, and its president, to provide full and accurate
disclosure of finance charges, annual percentage rates, and other terms
and conditions of financing, in compliance with the Truth in Lending
Act (TILA). The agreement settles allegations that Progressive Mortgage
provided false and misleading information about payment schedules and
the cost of credit to mortgage applicants, in violation of the TILA.
DATES: Comments must be received on or before February 10, 1997.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT:
John M. Mendenhall, Federal Trade Commission, Cleveland Regional
Office, 668 Euclid Avenue, Suite 520-A, Cleveland, OH 44114. (216) 522-
4210.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 2.34 of
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby
given that the above-captioned consent agreement containing a consent
order to cease and desist, having been filed with and accepted, subject
to final approval, by the Commission, has been placed on the public
record for a period of sixty (60) days. The following Analysis to Aid
Public Comment describes the terms of the consent agreement, and the
allegations in the accompanying complaint. An electronic copy of the
full text of the consent agreement package can be obtained from the
Commission Actions section of the FTC Home Page (for November 25,
1996), on the World Wide Web, at ``http://www.ftc.gov/os/actions/htm.''
A paper copy can be obtained from the FTC Public Reference Room, Room
H-130, Sixth Street and Pennsylvania Avenue, N.W., Washington, D.C.
20580, either in person or by calling (202) 326-3627. Public comment is
invited. Such comments or views will be considered by the Commission
and will be available for inspection and copying at its principal
office in accordance with Section 4.9(b)96)(ii) of the Commission's
Rules of Practice (16 CFR 4.9(b)(6)(ii)).
Analysis of Proposed Consent Order to Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from Progressive Mortgage Corporation, a
mortgage banker and its president Sanford Cramer.
The proposed consent order has been placed on the public record for
sixty (60) days for the reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and will decide whether it should withdraw from the agreement
or make final the agreement's proposed order.
The Commission's complaint charges that proposed respondents failed
to include premiums for mortgage insurance in calculating the finance
charge and the annual percentage rate for mortgage loans. Respondents
failed to accurately disclose to consumers the payment schedule and
total of payments scheduled to repay the obligation in its Truth in
Lending Act disclosures.
The Complaint also alleges that Sanford Cramer President provided
false and misleading written disclosures relating to the Truth in
Lending Act about consumer credit transactions.
The proposed Consent order contains provisions designed to remedy
the violations charged and to prevent the proposed respondents from
engaging in similar acts and practices in the future. Part I of the
order prohibits Progressive from engaging in the alleged practices in
the future. Part I also requires Progressive to calculate and make all
disclosures required by the Truth in Lending Act and cease from
misrepresenting any term or condition of financing for any consumer
credit transaction.
Paragraph II of the Order addresses the specific practices at issue
by prohibiting Cramer from misrepresenting the annual percentage rate,
the finance charge, the monthly payment amount or the total of payments
in any written disclosure. He is also prohibited from misrepresenting
any term or condition of financing for any consumer credit transaction.
The remainder of the proposed order consists of a six year
recordkeeping provision and other standard compliance provisions.
The purpose of this analysis is to facilitate public comment on the
proposed order, and is not intended to constitute an official
interpretation of the agreement and proposed order, or to modify in any
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-31266 Filed 12-9-96; 8:45 am]
BILLING CODE 6750-01-M
