A class-action lawsuit recently filed in California federal court against real estate brokerage franchisor Realogy and embattled mortgage lender PHH may shed some light on the companies’ recent decision to amend their joint-venture agreement.
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A longstanding relationship between real estate brokerage franchisor Realogy and embattled mortgage lender PHH Home Loans might be the latest casualty of the murky regulatory environment.
If your brokerage makes use of “preferred vendor lists,” you could be extending a welcome mat to regulators, according to many compliance experts — another potential regulatory minefield for real estate brokers to avoid.
On July 30, two of the nation’s largest mortgage lenders, Wells Fargo and Prospect Mortgage, announced to the world that they are “discontinuing” their participation in MSAs (marketing service agreements) with real estate agents and brokers. And in September 2014, Lighthouse Title in Michigan was slapped with a $200,000 fine for its MSAs with agents and brokers. There’s been confusion in the industry about what’s permissible with MSAs and what’s forbidden. And until last week, the Consumer Financial Protection Bureau (CFPB) had been largely silent on the issue.
Lender liability is a hot topic these days, with TILA-RESPA Integrated Disclosure (TRID) in effect since Oct. 3. Although the Consumer Financial Protection Bureau (CFPB) has said it will be lenient to those who show they are making a good-faith effort to be in compliance, this does not preclude others, such as homebuyers and investors, from questioning the accuracy of a mortgage loan.