Archive: 3 June 2014

1
CFPB Widens RESPA Enforcement to Focus on Affiliated Business Arrangement Disclosures

CFPB Widens RESPA Enforcement to Focus on Affiliated Business Arrangement Disclosures

By: Holly Spencer Bunting, Anaxet Y. Jones

The CFPB once again has taken aim at affiliated business arrangements (“AfBAs”), only this time, it is targeting AfBA disclosures. In prior enforcement actions, the CFPB focused on the validity of the AfBA, bringing actions against alleged “sham” AfBAs. However, in its most recent enforcement action, the CFPB entered into a consent order with a real estate brokerage company, alleging that it referred consumers to its affiliate, but failed to provide an adequate AfBA disclosure. The CFPB also alleged that the brokerage company improperly required the use of its affiliate title insurance agency.

Read More

Copyright © 2019, K&L Gates LLP. All Rights Reserved.