Legal Blog

Compensation and Compliance Matters: Marketing Services Agreements Are Still A Target

Anyone doubting that regulators are still focused on marketing services agreements need look no further than the HUD Audit and Consumer Financial Protection Bureau consent decree released recently. In the case of the HUD Audit, they found a mortgage company engaged in an impermissible marketing arrangement that violated section 8 of the Real Estate Settlement Procedures Act and the Department of Housing and Urban Development’s conflict of interest rules. The RESPA violation resulted from the fact that the agreement permitted and promoted the Realtor to literally put borrowers into a specific lender’s office, exclusive to other lenders. The conflict of interest was premised on the agency’s conclusion that the agreement was with a Realtor office, run by a principal, who was the lender’s branch manager.

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

If you have any questions please contact Ari Karen at:

Bank Manager Reimbursementsakaren@offitkurman.com  | 240.507.1740

Ari 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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