Can brokers relax about MSAs in the wake of the PHH decision?

  • PHH was victorious in the latest ruling about its captive reinsurance program, but captive reinsurance is not a marketing services agreement.
  • Although real estate professionals can view the court's decision as a win for the industry, they should still approach MSAs with caution, say experts.

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A federal court’s recent decision in Consumer Financial Protection Bureau (CFPB) v. PHH Corp. has some in the real estate, mortgage and settlement services industries breathing a little easier about Real Estate Settlement Procedures Act (RESPA) compliance concerns. But don’t get too comfortable with resuming or starting new affiliated business activities just yet.