On September 25, 2014, the Bureau of Consumer Financial
Protection ("CFPB") entered into a Consent Order with
Lighthouse Title, Inc., a title insurance company located in
Holland, Michigan ("Lighthouse"), in which the CFPB
alleged that Lighthouse violated RESPA section 8 by compensating
referral sources ("Advertisers") for performing certain
marketing services. These marketing/advertising services were
performed in accordance with the terms of a "marketing
services agreement" ("MSA") entered into between
Lighthouse and the Advertisers.
The Consent Order raises several questions, which are identified
and discussed below.
1. What Does the Order Say? Interestingly, the
Consent Order does not identify the specific marketing services the
Advertisers contracted to perform or the amounts of compensation
Lighthouse agreed to pay them in return for the marketing services.
Rather, it simply lists the things Lighthouse allegedly did and did
not do that convinced the CFPB
