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Wells Fargo, JP Morgan are the CFPB's latest targets

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Mortgage Professional America | 22 Jan 2015, 12:39 PM Agree 0
The two big banks will pay big for their roles in an illegal mortgage kickback scheme.
  • TimK | | 22 Jan 2015, 01:02 PM Agree 0
    When are they going to look at the exact same thing Realtors all over the country are doing? They shut out all competitors in the guise of "One stop shopping" and "Marketing Agreements". It is time to put this shame to an end once and for all.
  • Deb B | | 22 Jan 2015, 01:12 PM Agree 0
    When I asked why realtors were allowed to get away with this kind of practice, I was told "they have better lobbyists".
  • nick | | 22 Jan 2015, 01:16 PM Agree 0
    Doesen't seem to take muchto make a scheme these days. All you need to have is someone with a deep pocket. Fortunate that all the bankers were in Maryland and Virgina so no one had to travel far.
  • Jeff B | | 22 Jan 2015, 01:48 PM Agree 0
    This article did not address the specific harm to the borrowers who were steered to this title company. Were the fees paid through this arrangement higher than other settlement costs in the marketplace? If this is all about protecting the consumer, to me this should be the most important part of the story. Was this practice actually harming the consumer?

  • Kris | | 22 Jan 2015, 01:51 PM Agree 0
    I agree Jeff B about the consumers being harmned, no real mention of that, which really makes you thnk what is the real purpose of the CFPB? What about builders and their mortgage and title companies? That is the biggest "scheme" of all.
  • MattB | | 22 Jan 2015, 02:24 PM Agree 0
    I wonder when someone will go to jail for this?
  • JennaWu | | 22 Jan 2015, 03:04 PM Agree 0
    It affects the consumers b/c they messed with the economy.
  • Ann A | | 23 Jan 2015, 05:55 AM Agree 0
    Real estate agencies in "controlled business arrangements" with mortgage lenders are too common nowadays. These schemes eliminates other lenders from competing while discouraging consumers from shopping around outside for a better deal. Why's does CFPB not see this for what it is?
  • no hope | | 23 Jan 2015, 08:49 AM Agree 0
    Kickbacks among dirty title companies and mortgage officers and realtors have been going on forever. The entire reason for RESPA in 1973 was to combat this and then they carve out exceptions such as the "controlled business arrangement" that no one ever complies with. Even though there is universal non-compliance the realtor lobby especially, just pays folks off in Washington and the former enforcers like HUD and the local insurance administration off in various ways. For anyone in the industry the main large kickback title companies have always been common knowledge and yet the Insurance Administration is concerned more with placing all their resources with small ball issues rather than enforcing kickbacks. HUD and the local insurance administration have never had the guts to just simply say particular marketing arrangements or other shell joint ventures are illegal period! They always dance around the issue because they are eventually lobbied. If you go to the average realtor office right now that you know is connected to one of these commonly known kickback title companies you see no fear. They cannot stop taking the money that is flowing in every month. And why should they in Maryland. The main realtor culprits of this type of practice are very large influential players in Maryland, donating a lot of money with a tone of connections. If the Insurance Administration and/or the CFPB will bust a large title company and every single realtor that has a kickback relationship in Maryland with that large title company, I believe the publicity of this would end this once and for all. However they would have to go after every single realtor company connected to the dirty title company. They would have to make it known that if you get involved with a title company like this you run the risk of anyone of the other realtor kickback schemes taking the entire pyramid down. My prediction: Nothing more will happen or maybe some concentration on something that is of little concern.
  • garyh | | 04 Feb 2015, 10:53 AM Agree 0
    FORGET The Realtors How about the builders that require they handle the financing or you can't get concessions. They even go so far as to require their attorney be used to get any closing costs. That is who should be under the gun and the microscope. The Realtors have regulators. Nothing wrong with one stop shopping as long as clients have a choice and agents are not required to use the service. FREEDOM OF CHOICE AND FULL DISCLOSURE... NOT like the government . Ever wonder why politicians go in worth a few hundred thousand and walk out billionaires??

  • Nancy V | | 04 Feb 2015, 12:51 PM Agree 0
    Ah, but Brokers were the bad originators!
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