The Wells Fargo and Chase actions generated a lot of attention. But in a way, they aren’t “new” news in the sense that RESPA Section 8 enforcement has been the Bureau’s focus. If you just look at the number of cases brought by the Bureau as a percentage of all its public cases, it’s close to a quarter of all their public enforcement actions. So the Bureau has been making enforcement in this area a priority.
Putting aside the particular facts of the Wells Fargo and Chase actions, I look at these as a reminder that regulators are going to be looking closely at all your relationships. Vendor management is one aspect of that but they are looking very much at compliance with specific consumer protection laws including the section 8 prohibitions on certain types of payments involving settlement services. What you need to know for all the people you are doing business with is whether your agreements with those individuals or entities are compliant with existing law and assuming they are, are you adhering to those agreements? Some of the other actions brought by the Bureau in this area have been very focused on whether the services that are called for in the agreement with the third party are actually being performed].
Note: This transcript has been edited from the January 2015 vendor management webinar for clarity and completeness.
Answered By: Ben Olson