Legal Blog

Compensation and Compliance Matters: How Buying Leads Could Infringe on RESPA

Sales Leads Magnifying Glass Looking Searching Customers ProspecLenders should exercise caution when purchasing leads to ensure that they are not actually paying for referrals as prohibited by the Real Estate Settlement Procedures Act. The purchase of leads is an acceptable practice so long as the leads do not constitute referrals. The Department of Housing and Urban Development permitted lenders to purchase lists of prospects. Likewise, to date, the Consumer Financial Protection Bureau has not prohibited this practice. Nevertheless, RESPA, as enforced by HUD and the CFPB,

Click here to read the entire article on National Mortgage News.

akaren@offitkurman.com  | 240.507.1740

Bank Manager ReimbursementsAri Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.

Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.

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