CFPB issues $19.3 million Fine
On Aug. 12, 2014, the Consumer Financial Protection Bureau (CFPB) announced a consent agreement and $19.3 million in fines under the Real Estate Settlement Procedures Act (RESPA) and other laws with Amerisave Mortgage Corporation, its affiliate, Novo Appraisal Management Company, and the owner of both companies, Patrick Markert. The decree targets various practices including the required use of certain services, markups of various services without any sign of additional work being done, and a number of other practices by the lender and appraisal management company. The decree follows on the heels of similar enforcement actions targeting disclosures and practices under the anti-kickback provisions of RESPA. NAR will continue to work to educate members about their obligations under RESPA and also work with the CFPB to ensure appropriate compliance guidance is issued.