You Can't Ignore RESPA Section 8(c)

It's been over a year since the Consumer Financial Protection Bureau (CFPB) turned the real estate settlement services industry on its head by announcing in its first ever administrative appeal that Section 8(c) of the Real Estate Settlement Procedures Act (RESPA) was not, as it had long been interpreted, a series of safe harbor exemptions to the prohibitions of Section 8(a) and 8(b), but rather a mere "interpretive tool" with which to interpret the prohibitions. According to the Director, any Section 8(c)(2) compensation arrangement involving a quid pro quo settlement service business referral violates RESPA, regardless of the underlying services performed or whether the services were priced at fair market value. As has been well-documented on this blog, the CFPB's PHH decision was rejected by a panel of judges for the DC Circuit — which described its ruling as "not a close call" — and subsequently granted en banc review. While the court subsequently granted en banc rev