Dec 31
Dec 31 CFPB Takes Action to Stop Illegal Kickback Scheme to Steer Borrowers to Rocket Mortgage

On December 23, 2024, the CFPB sued Rocked Homes to stop them from providing incentives to real estate brokers and agents in exchange for steering homebuyers to Rocket Mortgage, LLC for loans. The CFPB also sued Jason Mitchell, his real estate brokerage firm, JMG Holding Partners LLC, and several real estate brokerage companies for their role in the unlawful scheme.

May 21
May 21 FDIC’s Settlement with Bank of England for Violations of Consumer Protection Laws

Adam Witmer

Regulatory Update, RESPA, HMDA, FCRA

On May 17, 2024, the FDIC announced that a settlement was reached with Bank of England, England, Arkansas, for violations of Section 5 of the Federal Trade Commission Act, the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), and the Home Mortgage Disclosure Act (HMDA). Nine former employees of the Bank of England have also stipulated to individual enforcement actions.

Aug 21
Aug 21 CFPB Fines Freedom Mortgage and Realty Connect for Illegal Kickbacks

Adam Witmer

Regulatory Update, RESPA

On August 17, 2023, the CFPB took action against Freedom Mortgage Corporation (Freedom) for providing illegal incentives to real estate brokers and agents in exchange for mortgage loan referrals. According to the CFPB, Freedom provided real estate agents and brokers with numerous incentives, including cash payments, paid subscription services, and catered parties, with the understanding they would refer prospective homebuyers to Freedom for mortgage loans.

Feb 13
Feb 13 CFPB Issues Advisory Opinion on Digital Mortgage Comparison-Shopping Platforms

Adam Witmer

Regulatory Update, RESPA

On February 7, 2023, the CFPB issued an advisory opinion to protect Americans from double dealing on digital mortgage comparison-shopping platforms. According to the CFPB, companies operating these digital platforms appear to shoppers as if they provide objective lender comparisons, but may illegally refer people to only those lenders paying referral fees. The advisory opinion outlines how companies violate RESPA when they steer shoppers to lenders by using pay-to-play tactics rather than providing shoppers with comprehensive and objective information.

Jan 4
Jan 4 FDIC Takes Action Against Willamette Valley for Several Violations

Adam Witmer

Regulatory Update, RESPA, FCRA

On November 14, 2022, the FDIC ordered Willamette Valley Bank to pay civil money penalty for several violations of the laws and regulations. The Bank consented to the issuance of the order from the FDIC without admitting or denying the violations of law or regulation.

Apr 1

Apr 1 VIDEO: Provisions of RESPA Section 8

Adam Witmer

RESPA

In this Compliance Clip, Adam gives a quick overview of the four provisions of Section 8 of the Real Estate Settlement Procedures Act (RESPA). To better explain how the provisions are incorporated in the regulations, Adam gives a quick visual of the actual law and Regulation X, where the RESPA Section 8 provisions are embedded.

Jan 7

Jan 7 VIDEO: RESPA Section 8 Gifts & Promotions

Adam Witmer

RESPA

In this Compliance Clip (video), Adam explains the answer to the question on whether or not gifts and promotions are allowed under RESPA Section 8. While having kickbacks and unearned fees is definitely prohibited, Adam gives some examples on how it may happen to mortgage lenders.

Oct 4
Oct 4 CFPB Reminds of Mortgage Servicing Rules

Adam Witmer

Regulatory Update, RESPA

On 9/30/2021, the CFPB published an article reminding servicers of newer rule that help protect potentially vulnerable borrowers exiting forbearance. In their article, the CFPB reminds loan services that not all borrowers are similarly situated and many borrowers may be vulnerable to a greater risk of harm due to a variety of pandemic-related and nonrelated circumstances, including poor health, mental decline, disability, caregiving for a child or loved one, having limited English proficiency, inadequate access to technology, or being a first-time homeowner.

Jun 29
Jun 29 CFPB Implements Foreclosure Safeguards Into Reg X

Adam Witmer

RESPA, Regulatory Update

On 6/28/2021, the CFPB issued a final rule to amend g certain provisions in Regulation X regarding additional assistance for borrowers experiencing a COVID-19-related hardship. This rule becomes effective on August 31, 2021, though a servicer may voluntarily take certain actions discussed in the 2021 Rule before this date for certain provisions.

May 6

May 6 VIDEO: RESPA Section 8 Violation Example

Adam Witmer

RESPA

In this Compliance Clip (video), Adam discusses a recent hot topic pointed out by the FDIC: RESPA Section 8. This discussion provides a background on why Adam believes that RESPA Section 8 is once again, a hot topic. This video would be great to share with your compliance team who may have responsibilities for monitoring for RESPA Section 8 risk.