Guide to Mortgage Referrals and RESPA Enforcement

The Consumer Financial Protection Bureau has brought a new, stricter interpretation to enforcement of the Real Estate Settlement Procedures Act, especially as it applies to referrals. And lacking official guidance, enforcement actions are about the only guideposts mortgage companies have to determine what referral and marketing relationships the CFPB thinks are out of bounds.

But referrals are a standard source of quality new business for most American industries. Short of going toe-to-toe with the CFPB, whatís a mortgage lender to do?

The Guide to Mortgage Referrals and RESPA Enforcement digs into CFPB actions, particularly the recent consent orders against Prospect Mortgage and some of its referral partners, for insight on what arrangements lenders should steer clear of and what business-generating tactics might be okay with the bureau.

Partial Table of Contents

CFPB Enforcement

  • CFPB Exam Procedures
  • Penalties and Liabilities
  • CFPBís Defense of RESPA Interpretation
  • Lessons from CFPB Consent Orders
  • Affiliated Business Arrangements

Prospect Mortgage Consent Order

  • Lead Generation
  • Marketing Services Agreements
  • Co-Marketing Arrangements
  • Desk Rentals
  • Capture Rates
  • Borrower Incentives
  • Real Estate Brokerages

Summary of the CFPBís RESPA Enforcement Actions

  • Paul Taylor Homes
  • Borders & Borders
  • Republic Mortgage Insurance Corp
  • Fidelity Mortgage
  • Stonebridge Title Services
  • JPMorgan Chase and Wells Fargo
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Poll

Do mortgage lenders really need a new credit-scoring model or is the current FICO system adequate?

It’s fine. Stick with what works.

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Time for a change. Borrowers are different today.

35%

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