Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Thursday, May 29, 2014

CFPB Takes Action Against Real Estate Firm

The CFPB is ordering the largest real estate firm in Alabama to pay $500,000 for inadequate disclosures that could leave consumers unaware of their rights to choose service providers during the home-buying process. These illegal practices benefitted an affiliated company owned by the same holding company as the real estate firm.

The real estate firm was charged with violating the Real Estate Settlement and Practices Act (RESPA), which prohibits kickbacks for referrals of real estate settlement services, by either explicitly directing or suggesting that title and closing services be conducted by its affiliate. While RESPA allows real estate companies to refer customers to affiliated businesses, the firm did not provide customers with the required “Affiliated Business Arrangement” disclosure that clearly states their right to shop around for better prices and that states that they are not required to use an affiliated company.

Along with paying the civil penalty fine, the firm is also required to ensure that its disclosures comply with RESPA.

Read more.

No comments:

Post a Comment

Please read our comment policy before making a comment.