You’ve been warned: CFPB puts real estate agents, lenders on RESPA violation watch
HousingWire recently published an article titled “You’ve been warned: CFPB puts real estate agents, lenders on RESPA violation watch.”
RESPA — the Real Estate Settlement Procedures Act — is a current buzzword in the housing industry with an increased scrutiny from the industry’s top consumer watchdog.
Between the Consumer Financial Protection Bureau slapping Prospect Mortgage with a $3.5 million fine for violating RESPA earlier this year and beefing up its ongoing investigation into Zillow for possibly violating RESPA, the real estate agent/lender space is being sent a warning, one industry attorney advises.
“Lenders should see this as clear warning that any arrangement with a real estate agent that is used to disguise payments for referrals will be critically reviewed by the CFPB for RESPA violations,” said Daniella Casseres, principal at Offit Kurman.
If you are unsure about RESPA violations or want more information, we’ve got an upcoming course with Jillayne Schlicke on June 9th, 2017. Find out more information and register online!