Mortgage Company and Realtors fined by CFPB
As reported in RISMedia and other outlets, a major mortgage lender, Prospect Mortgage along with two real estate brokerages have been ordered by the CFPB, Consumer Financial Protection Bureau to pay more than $3.5 million in penalties for operating an illegal kickback program for mortgage business referrals.The Real Estate Settlement Procedures Act (RESPA) prohibits real estate agents and brokerages from recommending settlement services, such as title insurance, appraisals, inspections, and loan origination, to consumers in exchange for payment from those service providers.