Links in “Marketing”

The FTC is not a fan of online lead generation for loans in which the customer fills out a form and gets back results that may not offer the "best" results at the top, but may offer the info on the lender willing to pay the most for the opportunity, finding such a practice "inherently deceptive." Um, let's discuss Marketing 101, shall we? [12/11/15]

The risks associated with Marketing Service Agreements may have just spiked, a spike we can attribute to a recent CFPB compliance bulletin. AffirmX’s Mike Stottlemyer helps decipher the warnings found in the bulletin. [10/16/15]

Mortgage Bankers Association warns its members to take the CFPB's bulletin on marketing services agreements seriously. See also Risk Watch 74. [10/15/15]

The CFPB posted a much anticipated bulletin aimed at providing guidance to the mortgage industry regarding marketing services agreements (MSAs). The bulletin offers an overview of the federal prohibition on mortgage kickbacks and referral fees, and describes examples from the CFPB’s enforcement experience as well as the risks faced by lenders entering into these agreements. The CFPB expresses grave concern over MSAs and issues strong warnings noting the legal and regulatory risk for lenders utilizing MSAs. [10/9/15]

As MSAs go away, loan officers are no longer obligated to recommend a partner, meaning they will have to more aggressively compete on their skill and service to win referral business. [9/1/15]

Are all marketing services agreements illegal? If so, then why does the CFPB let some companies off with no penalties, while it throws the book at other companies? [8/25/15]

Based on recent CFPB enforcement actions, it’s clear that financial institutions need to look beyond just technical compliance for their marketing materials, and keep in mind that perception may not be reality.  Be sure that your message is always clear, concise, and true—and pay particular attention to “bad” publicity. [5/11/15]

The CFPB has taken action against a land-development company, International Land Consultants, Inc. for misrepresenting marketing material to consumers regarding the state of the roads it was developing. [5/4/15]

The fine itself, $250,000, against a California mortgage lender may not have been huge, but the CFPBs action got plenty of coverage, helping to send a clear signal: don't imply a government agency affiliation in your marketing materials. See coverage here and here and here. [4/10/15]

The CFPB took action against RMK Financial Corporation (aka Majestic Home Loans) for deceptive mortgage advertising practices, including sending over 100,000 ads that led consumers to believe that the company was affiliated with the U.S. government via the VA. RMK ordered to pay penalty of $250,000 and end the illegal practice. [4/10/15]