Did you know…that Wells Fargo and Prospect Mortgage announced that they will end all Marketing Services Agreements (MSAs) and Desk Rental Agreements effective August 1, 2015?
Less than a year ago, the Consumer Financial Protect Bureau (CFPB) fined Lighthouse Title in Michigan $200,000 for fees received under an MSA that the CFPB found violated the Real Estate Settlements and Procedures Act (RESPA). See here.
More recently, the CFPB brought an action against Genuine Title in Maryland for violating RESPA. See here.
In Wells Fargo’s announcement it cited the “…increasing uncertainty surrounding regulatory oversight of these types of arrangements…” as influencing its decision to withdraw from these agreements. See here.
For more information regarding RESPA and MSAs or if you are concerned that your MSA may violate RESPA, contact one of our attorneys listed in this update.
For more information regarding our Residential Real Estate Settlements Group or our general real estate transactions and litigation practice, please contact the Group Chair at 301- 230-6574 or firstname.lastname@example.org.
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.
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