The Federal Savings Bank

The OCC entered into a consent order with The Federal Savings Bank in Chicago, Illinois, to settle allegations of deceptive advertising and false statements related to VA cash-out mortgage refinance loans originated between 2022 and 2024. The OCC alleged the bank sent millions of misleading advertisements telling consumers they had "available funds," when in reality the ads were solicitations for cash-out refinance loans. Certain employees also made false claims about a special relationship with the VA and misrepresented loan terms, including interest rates and monthly payments.

The bank neither admitted nor denied the allegations. The consent order does not specify a dollar amount for remediation or impose a civil money penalty. Instead, the bank must submit quarterly progress reports and engage an independent third-party consultant to plan restitution for eligible consumers.