What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Politics & MoneyMortgage

CFPB fines Lighthouse Title for kickbacks

Michigan agency allegedly paid real estate agents for referrals

The Consumer Financial Protection Bureau has slapped Lighthouse Title with a $200,000 fine, alleging that the title insurance agency offered kickbacks to real estate agents and brokers in exchange for client referrals.

According to the CFPB, Lighthouse Title, a Michigan-based title insurance agency, would enter into marketing services agreements with various companies, including real estate brokers, with the understanding that the companies would then funnel mortgage closings and title insurance business to Lighthouse.

“The agreements made it appear as if the payments would be based on marketing services the companies were supposed to provide to Lighthouse,” the CFPB said in a release.

“However, Lighthouse actually set the fees it would pay under the marketing services agreements, in part, by considering the number of referrals it received or expected to receive from each company. The CFPB’s investigation found that the companies on average referred significantly more business to Lighthouse when they had marketing services agreements than when they did not.”

The CFPB said that those actions were in violation of the Real Estate Settlement Procedures Act, which prohibits providing something of value to any person with an agreement or understanding that the person will refer real estate settlement services.

“Today’s action sends a clear and simple message, that quid pro quo agreements for real estate referrals are illegal,” said CFPB Director Richard Cordray. “The Consumer Bureau will continue to take action to ensure that the mortgage market is a level playing field where everyone plays by the rules.”

In addition to the fine of $200,000, the CFPB has also ordered Lighthouse to immediately terminate any existing marketing services agreements with companies in a position to refer business to the company.

Lighthouse has also been prohibited with entering into new marketing services agreements with any similar companies. 

Most Popular Articles

FHFA extends forbearance period to 18 months

In an effort to protect homeowners, the FHFA extended forbearance coverage to 18 months and pushed the eviction and foreclosure moratorium to June 30.

Feb 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please