By now, you may have heard of the recent court decision regarding the Consumer Financial Protection Bureau (CFPB) and PHH Corporation, a mortgage lender. In a surprising turn of events, the District of Columbia Circuit Court ruled in favor of PHH against the CFPB. Here are three things you need to know upfront:
- RESPA (Real Estate Settlement Procedures Act) prohibits fee sharing, charging fees that weren’t actually earned and business referrals in exchange for payments of money (or other items of value). The Department of Housing and Urban Development (HUD) enforced RESPA until 2011 – then the CFPB took over. The CFPB, in response to the mortgage crisis of 2008, has taken a much more aggressive, pro-consumer approach to enforcing RESPA.