Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

CFPB tells lenders to back off MSAs

Notify me of new replies via email
Mortgage Professional America | 03 Aug 2015, 09:00 AM Agree 0
The CFPB wants mortgage lenders to back off using marketing services agreements -- and it's willing to levy fines to make it happen
  • Bob G | | 03 Aug 2015, 09:36 AM Agree 0
    It's about time!!!! Now they need to go after the Builders to recover the bogus 'incentives' that resulted in above market rate fees and interests rates for the borrower.
  • | | 03 Aug 2015, 09:42 AM Agree 0
    Hopefully a level playing field will come to play versus greedy lenders and Real estate brokers. The borrower in most cases is the one who suffers with these sleazy agreements.
  • | | 03 Aug 2015, 10:07 AM Agree 0
    Finally! The one and only thing I am happy the CFPB has done.
  • irritated | | 03 Aug 2015, 10:12 AM Agree 0
    Real Estate Broker's are the worst offenders of all of the categories listed, mortgages, they have in house or "affiliate lenders", builders, title companies, appraisers, etc.They even help make the rules, which cracks me up. The CFPB should be going after every Real Estate Broker, and Real Estate Agent, then we would see some change...
  • | | 03 Aug 2015, 10:33 AM Agree 0
  • Jimmy | | 03 Aug 2015, 10:49 AM Agree 0
    Mortgage companies, title companies and insurance agencies owned by real estate brokers should be included here.

    Some of the worst abuses I've seen are in these "in house" firms.
  • Griff | | 03 Aug 2015, 12:43 PM Agree 0
    I can just say "what Bob G said". Seems we are all in agreement here it is way overdue. We'll see if the cfpb backs down against the big banks and allows them to carry on.
  • P | | 03 Aug 2015, 01:49 PM Agree 0
    At what point does the consumer take some responsibility for finding a good deal on their own? Way too much regulation that is making things more expensive and less competitive for consumers. There is nothing wrong with a legal and legitimate MSA between a lender and a real estate broker.

    Builder incentives definitely need to be looked at, these unadvertised discounts for using their closing or lending companies create a steering effect to consumers.
  • Maureen | | 03 Aug 2015, 02:22 PM Agree 0
    It's about time. MSA's do not serve anyone except the owners of the mortgage company and real estate / builder companies. MSA's certainly do not serve the buyers. I am so sick of hearing things like "hey Mr and Mrs Buyer use this broker and I will give you a $3000.00 credit" can't blame a consumer for that. Smaller Brokers have a hard time competing with the larger broker who has deep pockets and "purchases" the business of realtors by paying the rent, food for open houses, office equipment, trips, etc. Then the real estate company / builder forces their agents / sales staff to use the broker that paid for the goodies. I welcome a level playing field. Where you compete on knowledge, service and old fashion ethics...
  • ottomaddux | | 03 Aug 2015, 03:14 PM Agree 0
    Not going to do a thing, Most MSAs have already been renamed CSAs slightly different structure same result.
  • TZeus | | 03 Aug 2015, 03:29 PM Agree 0
    I've been in lending for almost 30 years and despise MSA's. Please...who ever thinks their not a kickback (pay to play) to the broker for referral of business is an idiot. If it's not then why are these offices closed to non-kick back lenders? I was asked to be one of four lender to be involved with MSA's at a remax office and pay $2500 ($2500x4=$10k) was a sham and the broker knew it...when he was told by one of the lenders to leave in certain language that made it look like they were helping to market the Lenders services to justify the monthly payment/kickback. I'm happy the cfpb is out here....finally someone penalizing the shams and going after bad players. That's something HUD rarely did.
  • Publius | | 04 Aug 2015, 06:43 AM Agree 0
    As a mortgage professional I am happy to see the CFPB on the case. There are so many underhanded arrangements in our industry it makes us look like organized crime at times. I hope they go after some of the questionable underwriting arrangements the mortgage insurers have with the lenders next.
  • | | 04 Aug 2015, 11:08 AM Agree 0
    This is actually a good thing and right for the consumer and levels the playing field.
  • | | 04 Aug 2015, 01:07 PM Agree 0
    Finally!!!!!!!!!! The only parties that suffer in these arrangements are the consumers and lenders playing by the rules.
  • | | 11 Aug 2015, 03:16 PM Agree 0
    Yes - I hope the CFPB stays hot on them.
  • Kasey | | 13 Aug 2015, 12:25 PM Agree 0
    Yes I agree on the MSA's

    But on the other hand...CFPB has not helped the consumer.

    Well no since in repeating my past comments. CFPB is exercising their heavy hand. Showing us they can go after us (warning do not go after CFPB because see how we [CFPB] will just go after you again and again on something else). CFPB needs to be put away - close shop. How dumb was it to allow them not to be answerable to anyone??

    It is tiring to keep begging them for open dialogue ---CFPB has been handed the chip on their shoulder. Just how much $ is CFPB bringing through fines? Are their hands clean in all of their regulations. CFPB is not about consumer protection - it is about power. CFPB is operating unconstitutionally and open the doors for unfair lending - NOW we have predatory lending turndowns - underhanded lending discrimination.

    'Sonny, DO as I SAY if you know what is good for you"!
Post a reply