Navigating the new age of lender liability will require collaboration, advocacy

The Consumer Financial Protection Bureau created a stir last April when it indicated that lenders would be held responsible for the activities of their vendors. Since then, the real estate settlement services industry has been grappling with the problem of how best to verify to lenders that agents are in compliance with applicable consumer protection laws and regulations. During the 2013 National Settlement Services Summit in Cleveland, Penny Reed, vice president, Wells Fargo Home Mortgage, recommended that settlement agents engage their lender clients to address the issue head on.