Zillow and RESPA Part 2: The Details

Posted by Nathan Knottingham on May 18 2017

Okay, maybe you did know these things about RESPA, but apparently Zillow didn't.  We've created this vdieo for you to share with your professional contacts and people in the industry that need a primer on RESPA.  

Mortgage lending can be hard, especially when your realtor friends are never trained on RESPA and then challenge, threaten, and admire those that DO violate RESPA. Well, we've got a primer for everyone.

Share the word, stand firm in ethical business, and watch the fireworks launch soon.

Here are links you need:
RESPA - 12 CFP Part 1024 (Regulation X): https://www.consumerfinance.gov/eregulations/1024-14/2015-18239#1024-14-a

What do you think?  What are you hearing about this?  Let us know below!

The link to the SEC 10-Q report is here: http://investors.zillowgroup.com/secfiling.cfm?filingID=1193125-17-158865&CIK_SEC

From Zillow's Filed 10-Q

In April 2017, we received a Civil Investigative Demand from the Consumer Financial Protection Bureau (“CFPB”) requesting information related to our March 2017 response to the CFPB’s February 2017 Notice and Opportunity to Respond and Advise (“NORA”) letter. The NORA letter notified us that the CFPB’s Office of Enforcement is considering whether to recommend that the CFPB take legal action against us, alleging that we violated Section 8 of the Real Estate Settlement Procedures Act (“RESPA”) and Section 1036 of the Consumer Financial Protection Act. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action may be recommended or commenced. This notice stems from an inquiry that commenced in 2015 when we received and responded to an initial Civil Investigative Demand from the CFPB containing a broad request for information. We believe our response to the NORA letter addresses the CFPB’s concerns related to our co-marketing program under which a lender pays us to appear in advertising alongside a real estate agent. We are continuing to cooperate with the CFPB in connection with their most recent request for information. We continue to believe that our acts and practices are lawful and that our co-marketing program allows lenders and agents to comply with RESPA. Should the CFPB commence an action against us, it may seek restitution, civil monetary penalties, injunctive relief or other corrective action. We cannot provide assurance that the CFPB will not ultimately commence a legal action against us in this matter, nor are we able to predict the likely outcome of the investigation into this matter. We have not recorded an accrual related to this matter as of March 31, 2017 or December 31, 2016, as we do not believe a loss is probable. There is a reasonable possibility that a loss may be incurred; however, the possible loss or range of loss is not estimable. (http://investors.zillowgroup.com/secfiling.cfm?filingID=1193125-17-158865&CIK_SEC#D338580D10Q_HTM_TX338580_7)

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As always, thank you for liking and sharing our messages. If you have other topics you would like to see us look into please also leave those in the comments below. 

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Tags: Compliance, Mortgage, Advertising, REALTORS, CFPB, RESPA, Fines, Knowledge Coop, Ken Perry



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