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

Although decision upholds RESPA’s exemptions for certain affiliated business practices, industry leaders caution that it’s ‘not a green light for MSAs’
  • 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.

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.