While the Consumer Financial Protection Bureau (CFPB) has not issued any recent enforcement actions under its RESPA authority, that does not mean it is not examining and advising on it. The advisory opinion on digital comparison shopping platforms it issued in February is evidence the bureau is paying attention to servicers and how they are doing business.
Franzén & Salzano President Loretta Salzano and Firstline Compliance, LLC Vice President Jerra Ryan will be joining October Research at the National Settlement Services Summit to offer insight into the bureau’s advisory opinion, other CFPB priorities, and the best practices for settlement providers.
“It is important to understand the scope and intent of the CFPB advisory opinions,” Ryan said. “Advisory opinions cannot change a regulation, but they provide valuable insight about the bureau’s expectations. While this advisory opinion specifically addresses ‘mortgage comparison shopping platforms,’ it has broader implications on compliance.”
With over 30 years of servicing and lending experience, Ryan is an expert in all the life stages of a residential loan. Her resume boasts high level positions with SWBC Mortgage, First Choice Loan Services, Inc., and Cherry Creek Mortgage Co., Inc. She also serves on the Mortgage Bankers’ Association’s Regulatory Compliance Subcommittee as vice chair.
Ryan said the market dynamics are challenging right now, and as settlement providers invest in tools, resources, and marketing to reach consumers and drive production, it is imperative to ensure their efforts comply with RESPA, as well as other state and federal rules.
Salzano has been named a Top Compliance Lawyer by Mortgage Compliance Magazine, is a fellow of the American College of Consumer Financial Services Attorneys, and serves as legal counsel to the Mortgage Bankers Association of Georgia and to Rainbow Village, a transitional housing program. She advises banks, mortgage lenders, real estate brokers, title agents, and other settlement services providers on RESPA compliance, as well as the Truth in Lending Act, the Equal Credit Opportunity Act, and the Home Mortgage Disclosure Act.
“I am passionate about any bone the CFPB throws us when it comes to RESPA,” she said. “The recent advisory opinion is helpful in predicting how the CFPB and other regulators will respond not only to the precise issue addressed in the guidance, but in other situations.”
Digital marketing compliance is a timely issue, because with the recent drop in volume, settlement service providers are exploring ways to increase production, which oftentimes includes working with digital marketing platforms, lead sellers and other referral sources. Salzano said it is important to understand how initiatives to fuel growth might result in risk of a violation of RESPA and other consumer protection laws.
Salzano said she hoped attendees will walk away with the expertise to know where to draw the line relative to online marketing and payments to referral sources in other contexts.
“The guidance in the advisory opinion is not a roadblock, and attendees can use it as a guardrail to effectively manage risk as they grow their business,” Ryan said.
For more information on the 2023 NS3, including the agenda and a list of speakers for all three days, click here. You can register for NS3 here.