Legal Blog

Compliance and Compensation Matters – January 22, 2014

Latest Consent Decree a Wake-Up Call on Marketing Agreements

   Non-Qualified Mortgage Loans
 A Consent Decree filed last week by the Consumer Financial Protection Bureau involving a small Missouri lender is yet another wake-up call about the CFPB’s willingness to go after small lenders. It also illustrates its focus on the intent of marketing agreements, as opposed to their form, in enforcing Section 8 of the Real Estate Settlement Procedures Act.


A consent decree filed last week requires a local lender to pay an $81,000 fine, three times the origination fees charged to the 20 consumers who were solicited through the lender’s office lease relationship with a local community bank. In concluding the office lease relationship was merely a kickback, the CFPB focused on e-mail communications in which the office lease was negotiated as well as the fact that the rent payments change Read more on National Mortgage News.