CFPB Opinion Says Lenders Using Google Ads May Be In Violation Section 8 Of RESPA For Fee Splitting
The CFPB has issued an opinion about mortgage comparison site platforms. The agency says these sites could be violating the Real Estate Settlement Procedures Act (RESPA) section 8.
The CFPB points out that mortgage comparison sites are steering consumers to certain lenders based on compensation. The agency points out that operators who do this are in violation of the RESPA section 8. Additionally, if the operator received any payment or other thing of value for the referral activity the site provides, the site will be hit with a prohibited referral fee.
What does the CFPB opinion mean for lender marketing?
This will lower costs for Google ads. This is great for individual loan officers to start a Google Ads campaign as costs are lower. Industry insiders say they can already see a dramatic drop in pay-per-click marketing. Companies use pay-per-click campaigns to drive traffic from Google searches to landing pages to generate leads.
Certain markets are showing a 59.5% decrease in cost per click and has also seen a corresponding 50% decrease in cost per lead.
One market saw cost per lead drop by 166%.
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