CFPB Replaces Cordray-Era MSA Guidance with New RESPA Section 8 FAQs

The Real Estate Settlement Procedures Act is ambiguous, and compliance often turns on the facts of arrangements. For that reason, settlement service providers have been asking the Consumer Financial Protection Bureau for guidance since it took responsibility for RESPA nearly 10 years ago. These calls were amplified when Section 8 of RESPA was an early target of the CFPB’s enforcement actions. On October 7, 2020, the CFPB released a series of Frequently Asked Questions designed to address the elements of Section 8 of RESPA, as well as to answer specific questions regarding the permissibility of gifts, promotional activities, and marketing services agreements. At the same time, the CFPB rescinded a Compliance Bulletin on RESPA and marketing services agreements that was issued under Director Richard Cordray and long criticized by industry participants.

Read more about the CFPB’s RESPA FAQs and issues that may need further clarification in Mayer Brown’s Legal Update.