Digital Mortgage Comparison-Shopping Platforms

Back in February 2023, the CFPB issued an Advisory Opinion regarding digital mortgage comparison-shopping platforms (DMCSP) and the potential for RESPA Section 8 violations. Issues can arise if the DMCSP operator:

1. Uses or presents information about settlement service providers in a non-neutral manner.
2. Steers to or influences users to select certain settlement service providers
3. Receives payment or a thing of value from the referral activity or
4. Receives higher fees from certain settlement service providers than others on the platform.

Just be aware that if your institution or your mortgage lenders are featured on DMCSPs, you need to do your due diligence, so you don’t run into trouble with RESPA Section 8.

Kevin explains more in the video.