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Recent FDIC Focus on RESPA Sect. 8 Broker-Related Violations

Recent FDIC Focus on RESPA Sect. 8 Broker-Related Violations

NRMLA’s outside counsel, Weiner Brodsky Kider, PC, has published a memorandum for members that summarizes recent enforcement actions taken by the FDIC regarding violations of RESPA Section 8.

Why it matters: The FDIC, on May 17, 2024, announced a consent agreement with a bank for multiple alleged violations, including reverse mortgage-related violations under RESPA Section 8.

Just two months earlier, in its March 2024 Consumer Compliance Supervisory Highlights, the FDIC also focused on potential RESPA Section 8 violations involving relationships between banks and mortgage brokers.

The bottom line: In addition to the FDIC, the CFPB is ramping up its RESPA Section 8-related actions, including, for example, its February 2023 Advisory Opinion on digital mortgage comparison-shopping platforms.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.