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