The
Consumer Financial Protection Bureau (CFPB) took action against Prospect
Mortgage, LLC, a mortgage lender, for referral fees and against real estate
brokers and a mortgage servicer from accepting those referral fees. The CFPB considered all of these parties to be "settlement service providers."
RESPA Section 8(a) prohibits
making payments to anyone, including brokers and agents, in return for referring consumers to particular real estate settlement service providers.
12 U.S.C. § 2607(a). As a result of this CFPB enforcement action, Prospect will pay a $3.5 million
civil penalty and the mortgage brokers and servicer
will pay a combined $495,000.
Consent Order
