Well it’s here. There is a class action lawsuit for $11.2 million against a large real estate company for RESPA violations.
NAR can’t really do anything about this one. Long & Foster Real Estate is on the short end of the stick with regards to a huge RESPA lawsuit. They’re allegedly in cahoots with another company sharing settlement fees and they are facing a lawsuit over it all. A lawsuit to the tune of over $11 million PLUS guys. I think a lot of us figured the real estate agents out there were pretty well protected by their mega watch dog the National Association or Realtors with respect to this kind of stuff, but it would appear that this isn’t the case.
If you think about it, NAR really can’t do anything about this and the word on the street is that the CFPB themselves are looking into “several” real estate companies that have these types of relationships. This should be very very scary to any real estate company out there with this type of agreement with another party. Why? Because the CFPB can waltz into virtually any organization and shut them down. There’s no one to regulate them, or there’s no one for them to answer to. So if RESPA is in question, it really doesn’t matter who you are, you’re going to have to pay or get shut down. From what we can see there’s no middle ground with the CFPB.
Of course Long & Foster is going to fight it, but it doesn’t matter, they’ll probably wind up paying something. We believe we’re right because it seems like everybody winds up paying something these days. We’ll let you watch the show for the rest of the details, and we really recommend you do because there are literally thousands of relationships out there that resemble what’s going on with Long & Foster. If you’ve got one going right now, you should consider dumping it ASAP because the CFPB is on to this and real estate offices are not exempt from their iron fist.
On a happier note, to get more purchase business you should check out our Listing Booster webinar this Friday. You can CLICK HERE to register for it.
You all have a wonderful day!
Frank and Brian