CFPB Fines Real Estate Company: Do Agents Need to Worry?
By Kelly J. Phelan, RET Content Editor
Posted by: RET Staff
Is Zillow RESPA compliant? Are MSAs illegal? These are a few of the questions posed in a new video that examines the impact of a recent order from the Consumer Finance Protection Bureau (CFPB), the government agency formed in 2011 in the wake of the 2007-08 mortgage crisis.
Late last month, the CFPB "issued a warning shot to Realtors and brokers nationwide" when they fined a real estate company for an improper MSA (marketing services agreement) and referrals.
According to the consent order, the lender was violating RESPA by offering the brokerage what was, essentially, a disguised payment for a referral.
So what does this mean for agents who use, for example, Zillow's co-marketing program that lets them share advertising costs with a lender--or even other lead generation services? Does this arrangement violate RESPA, and do agents need to worry about the CFPB coming after them? Check out the video above to learn more, and then share your thoughts with us in the comments below!