Debate on whether Zillow’s lender co-marketing program violates RESPA reignited

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The debate on whether agents and lenders who participate in Zillow’s lender co-marketing program violate a federal anti-kickback law reignited.

The Consumer Financial Protection Bureau (CFPB) had not issued any guidance as to whether participating in Zillow’s lender co-marketing program violates RESPA, which promoted uncertainty among agents and lenders across the country. And videos from real estate video blogger Brian Stevens restarted the years-long, ongoing debate.

When asked whether CFPB examiners had been telling loan officers that receiving leads from Zillow violates RESPA, the federal agency did not affirm or deny the report and declined to offer a position on Zillow’s co-marketing program or on whether agents and lenders should be participating in it.