Home with LoanHouse with loan
From 3 October, the Bauspar Tookit will replace the special information brochure currently distributed to borrowers applying for a mortgages. Dodd-Frank Act and its provisions - 12 U.S.C. § 2604, 12 C.F.R. § 10224.6 and 12 C.F.R. § 1026.19(g). Enterprises may place their logos on the front of the new kit.
CFPB's instruction on how to record a logotype can be found here. Naturally, property pros and titles want to take advantage of this market opportunities by equipping the kit covers with many different brands - titles corporate brands, realtor brands, lenders brands and mortgages realtor brands, to name a few.
All of a sudden, a apparently legitimate market option that CFPB itself creates becomes a great obedience hazard. Fortunately, the CFPB has produced some rather scarce guidelines in writing on this subject. CFPB says that a security firm can legally place its own emblem on the front of the kit and give a copy to a property agent or realtor, who in turn gives it to a consumer who buys a house.
Promotion does not violate Section 8 of RESPA as long as the Lead Partner provides its Brand Toolset free of charge to the property pro or realtor, without any terms that require a reference, and without maintaining full ownership of whether or how the Toolset is used.
However, a titular entity transcends the boundary and infringes Section 8 of RESPA by placing another entity's emblem on the front of the Werkzeugkit and providing free duplicates to the other entity to give to home buyers. For the most part, the lead entity pays for the other entity's promotional material.
Either way, the lead security firm makes the kit available to another firm free of cost. In the first case, however, the cover enterprise uses its own logotype on the GFPB standard tools kit, which, according to the GFPB, "normal advertising and training activities" are allowed by 12 C.F.R. 1024.14(g)(vi). CFPB sees it as a setback for the lead firm to put another firm's emblem on the kit, as it would incur an effort that would otherwise be borne by the other firm.
For the CFPB's letter of guidelines on when the use of a corporate identity exceeds this limit and becomes an illicit kick-back, see transparencies 40 and 41 of the CFPB agent "Know Before You Owe: Download the slideshow "The guideline for property professionals".