CFPB Guidance Affects Mortgage Comparison-Shopping Websites

The Consumer Financial Protection Bureau ("CFPB") issued guidance on February 7 in the form of an Advisory Opinion intended to "protect mortgage borrowers from pay-to-play digital comparison-shopping platforms." Specifically, the Advisory Opinion is focused upon addressing the applicability of the Real Estate Settlement Procedures Act ("RESPA") to operators of "digital technology platforms that enable consumers to comparison shop for mortgages and other real estate settlement services, including platforms that generate potential leads for platform participants through consumers' interaction with the platform." ("Digital Platforms")

Section 8 of RESPA, which carries criminal penalties if violated, provides that "no person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or a part of a real estate settlement service involving [a mortgage] shall be