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CFPB cracks down on illegal mortgage kickback scheme

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Mortgage Professional America | 01 Oct 2014, 07:47 AM Agree 0
A title insurance company has been tagged by the CFPB for offering kickbacks to other businesses
  • NJRep | | 01 Oct 2014, 09:42 AM Agree 0
    How do you contact the CFPB to report this kind of activity. It is rampant in my area.
  • | | 01 Oct 2014, 11:03 AM Agree 0
    How about Reliant Realty and Signature Title??? From what I understand, there is a penalty for the Realtor if they don't use Signature Title.
    Correct me if I'm wrong.
  • KeithStonehouse | | 01 Oct 2014, 12:19 PM Agree 0
    I hear about this daily from my Realtor and Mortgage Loan Officer clients in that their brokers tend to steer them towards the 'in-house' title company and get hassled if they do not use them. This is obviously nothing new but, needs to be cracked down on. It's been swept under the rug for far too many years like concussions (CTE) in the NFL. As long as we let it slide... the longer it will continue and only get worse. This does not benefit the end consumer who we all should be looking out for ultimately.
  • Griff | | 01 Oct 2014, 03:41 PM Agree 0
    In house title, lenders and home owner insurance may be sold as being quicker or easier, but they are not cheaper, or can we call them better? I talked to a borrower who was paying over $4000 a year for home owner insurance, not in a flood plane and had never had a claim. She used the in house HOI provider. When it comes to title, I always tell the consumer we'll do what you want, it is your choice and do you really want the real estate company who has a stake in the outcome to be in charge of this? The best thing we professionals can do is educate folks.
  • Richard Swanson | | 03 Oct 2014, 01:51 PM Agree 1
    it is a crying shame what goes around, I am happy my referral base is consistent with new borrowers but I do not get complacent. I prospect for new agents to work with..I would say 2 out of every 3 real estate brokers have their "guy" that takes care of their clients and will not refer others and then there are others that want a kickback.... and some have Been in the business for many years.. I write them off my visit list!!! kickbacks increase rates and fees for the consumer and should never be paid.. personally I have 21 years of strong mortgage origination experience and the knowledge and persistence and attention and professionalism I bring to the table far exceeds a hustler looking for another buck... don't call me if that is the way you do business!!!
  • Richard Swanson | | 03 Oct 2014, 01:52 PM Agree 0
    And I approve of this message!
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