CFPB on MSAs: Where there’s Smoke…
The CFPB posted a much anticipated bulletin aimed at providing guidance to the mortgage industry regarding marketing services agreements (MSAs). The bulletin offers an overview of the federal prohibition on mortgage kickbacks and referral fees, and describes examples from the CFPB’s enforcement experience as well as the risks faced by lenders entering into these agreements. The CFPB expresses grave concern over MSAs and issues strong warnings noting the legal and regulatory risk for lenders utilizing MSAs. [10/9/15]