At Friday morning’s Idea Exchange Council for Brokers, Joseph M. Ventrone, Vice President of the National Association of REALTORS® Regulatory and Industry Relations Department, spoke to the group about important regulation issues, including the CFPB, MSA’s, and TRID documents.
The Consumer Financial Protection Bureau (CFPB) was formed as part of Dodd Frank legislation. Ventrone said that the CFPB represents consumers, and in our duties as agents and brokers we represent consumers as well, so the two should be well matched. He noted that Dodd Frank addressed the banking industry, not real estate directly. But RESPA issues and specifically the closing documents do affect us, and they are hot issues Ventrone monitors.
Ventrone advised brokers that any Marketing Service Agreements (MSAs) they have in force must be in writing, and must be disclosed to the consumer up front. Document everything, including value of the service and any benefit received. There is information on NAR’s website that is available to members to read about in the publication “RESPA Do’s and Don’ts for MSAs.” The document is available as a digital download to members.
Also, Ventrone gave an update on TRID and the Closing Document.REALTORS® across the country report that lenders and title companies still refuse to give agents the Closing Documents, stating that TRID forbids it. Ventrone said there is nothing in the rules where the lender or title company cannot disclose the CD. He recommended if an agent is having difficulty getting a copy of the CD, print out NAR’s one-page document on this topic and give it to that lender or title company. A one-page document dealing with TRID and the Closing Document are online at NAR’s website realtor.org.