On February 9, 2023, the National Mortgage News quoted Jonathan Pompan on the Consumer Financial Protection Bureau's (CFPB) warning regarding transactions on mortgage shopping sites.
According to the article, the mortgage shopping platforms could be violating the Real Estate Settlement Procedures Act's anti-kickback rules if a lender's placement on a site is based on compensation rather than neutral decision making.
"The advisory is a warning to digital marketing platforms of the potential consequences of business relationships with mortgage lenders," said Pompan. "The CFPB has a direct sightline into the marketing activities of mortgage lenders through routine examinations and has previously announced that digital marketers that are involved in the identification or selection of prospective customers or the selection or placement of content to affect consumer behavior are typically service providers for purposes of the law."