Feds Impose Big Fine for Inadequate Affiliated Business Disclosure

On May 28, 2014, the Consumer Financial Protection Bureau (CFPB) announced a consent agreement and $500,000 fine to a real estate firm for inadequate disclosure language in an affiliated business disclosure. Under the Real Estate Settlement Procedures Act (RESPA) affiliate entities must disclose relationships to consumers at or prior to the time of referral and make clear that consumers are not required to use the affiliate.  In the case in question the disclosure form deviated from a sample disclosure published in the regulations by the Department of Housing and Urban Development (HUD).

The CFPB consent order requires the forms to be completely synchronized with published sample including placing the same emphasis on key words.  View the HUD sample form here:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/ramh/res/resappd

This entry was posted in - IRES MLS News, Gov't Affairs, Govt - National Assoc. of Realtors® (NAR) and tagged , , , , , , , . Bookmark the permalink.

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