CFPB Targets Service Provider in Real Estate Kickback Enforcement Action

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The CFPB continues to use its enforcement power on service providers, including companies involved in advertising and marketing and lead generation

The Consumer Financial Protection Bureau (the "CFPB") announced it ordered a service provider to surrender the full amount he received in kickbacks for referring mortgage origination business to a bank and a mortgage company, on May 17, 2013. The CFPB is also prohibiting the service provider, a homebuilder, from engaging in future real estate settlement services, including mortgage origination.

This enforcement action signals that the CFPB continues to use its enforcement power on both direct providers of consumer financial products and services and their service providers, including companies involved in advertising and marketing and lead generation, including homebuilders.

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Topics:  CFPB, Enforcement, Kickbacks, Real Estate Market, RESPA

Published In: General Business Updates, Communications & Media Updates, Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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