Feel like you’re in a shaken snow globe? So do we! February brought the worst “vacation” we’ve seen when the industry-favorable PHH decision was vacated. We’ll have to await the en banc review for a ruling on the CFPB’s constitutionality and RESPA’s 8(c)(2) exception.
In the meantime on the RESPA 8(c)(2) front, the CFPB gave us more fodder and tea leaves to read in four consent orders related to marketing, lead generation and “desk licenses,” all to be found at https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-prospect-mortgage-pay-35-million-fine-illegal-kickback-scheme/. While the CFPB did not proclaim such arrangements per se illegal, it declared the payments to real estate brokers and others to be for referrals and assessed substantial penalties.
Please let us know if we can help settle your snow globe or read your tea leaves when it comes to your arrangements.