On October 7, 2020, the Consumer Financial Protection Bureau (CFPB) rescinded the October 8, 2015, Compliance Bulletin (2015-05), which curtailed the use of Marketing Services Agreements (MSAs). Instead of replacing the Bulletin with another interpretation of the Real Estate Settlement Procedures Act (RESPA), the Bureau updated their Frequently Asked Questions (FAQs), recognizing industry best practices and focusing on a facts and circumstances analysis for determining RESPA compliance. The updated guidance includes common scenarios and examples that address RESPA compliance questions related to MSAs, as well as gifts and promotional activities.
NAR has long advocated for the withdraw of this bulletin, including last month in an industry coalition letter, to increase regulatory certainty. The Bureau’s actions are welcomed to enhance RESPA compliance and NAR will continue to engage with the CFPB in the development of resources to provide additional industry clarity on these issues.
Stay tuned to nar.realtor/respa for the latest updates.