RESPA Section 8: Digital Marketing Comparison Platforms
Back in February 2023, the CFPB issued an Advisory Opinion to alert institutions to the applicability of RESPA Section 8 in relation to digital mortgage comparison-shopping platforms (DMCSP). It stated, Generally, this Advisory Opinion describes how an operator of a Digital Mortgage Comparison-Shopping Platform violates RESPA section 8 if the platform provides enhanced placement or otherwise steers consumers to platform participants based on compensation the platform operator receives from those participants rather than based on neutral criteria. If your institution or your mortgage lenders are featured on DMCSPs, you need to do your due diligence and find out how the search results are generated/presented because if it’s not done in a completely neutral manner, you could run into trouble with RESPA Section 8.
Kevin explains more in the video.
Published
2024/12/02
Kevin Edwards
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).