Builders Violate RESPA

CFPB does nothing about it, so far

As a wool in sheep’s clothing (me in the mostly Republican mortgage business), I have mixed emotions about the CFPB.

Yes, they are doing some good with many lenders gone astray and the Wells Fargo roundup a few months ago.

But this consumer protection governmental structure shies away from a blatant, in your face, some would say illegal activity that some homebuilders require a consumer to do.

They force buyers in their developments to go through their mortgage company so they can get free stuff or money paid towards closing costs.

They are making more than that on the mortgage or they wouldn’t be doing it.

A couple of months ago, the CFPB came down on a mortgage company and a few real estate brokerages for hanky-panky sharing/forcing cross breeding on clients.

So why not go after the builders. Some of which are big Wall Street stocks. Didn’t you want to drain the swamp? Oh wait, that’s the other guy.

Watch it, spread it, bother NAR and MBA to push to get rid of this.