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Financial Services Law Insights and Observations

CFPB and Maryland AG Bring RESPA Enforcement Action Against Title Company and Six Individuals

CFPB RESPA Enforcement

Consumer Finance

On April 29, the CFPB and the Maryland Attorney General announced a joint enforcement action against a Maryland title company and six individuals for participation in a mortgage-kickback scheme in violation of RESPA and state law. According to the complaint, between 2009 and 2014, the title company allegedly provided kickbacks and marketing services to loan officers in exchange for referrals of business. Under a proposed consent order, the title company will be prohibited from committing further violations of RESPA. In addition, five of the six individuals will be banned from the mortgage industry and ordered to pay a total of $662,500 in redress and penalties, while the regulators are proceeding in litigation against the sixth individual. The enforcement action follows a January enforcement action, where the CFPB and the Maryland Attorney General announced a joint enforcement action against two banks for their participation in this particular mortgage-kickback scheme.

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