The CFPB has reportedly concluded its two-year investigation into whether Zillow violated regulations – and now it wants the real estate giant to talk settlement
The Consumer Financial Protection Bureau is pressuring Zillow to come to a settlement agreement over whether the real estate giant violated federal regulations, it was revealed in an earnings call.
The CFPB wants Zillow to discuss a settlement for alleged violations of the Real Estate Settlement Procedures Act and the Consumer Financial Protection Act. The regulator has been investigating the company’s co-marketing program, which allows real estate agents and mortgage lenders to advertise together on Zillow websites.
According to the CFPB – which has been investigating Zillow over the practice for the last two years – this kind of co-marketing may be a RESPA violation. Zillow, of course, maintains that it is not.
“We believe our co-marketing program has, and continues to, allow agents and lenders to comply with the law while using our product,” Zillow Chief Financial Officer Kathleen Phillips told stockholders in May.
Phillips said in an earnings call on Tuesday that she plans to go to Washington, D.C., to work with the CFPB on a settlement. But if a settlement isn’t agreed upon, final resolution of the disagreement between the real estate website and the regulator could take time, according to a HousingWire report.
And if that happens, the CFPB could have a fight on its hands.
“We continue to believe that our acts and practices are lawful and that our co-marketing program allows lenders and agents to comply with RESPA, and we will vigorously defend any allegations to the contrary,” Zillow said in a statement.
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The CFPB wants Zillow to discuss a settlement for alleged violations of the Real Estate Settlement Procedures Act and the Consumer Financial Protection Act. The regulator has been investigating the company’s co-marketing program, which allows real estate agents and mortgage lenders to advertise together on Zillow websites.
According to the CFPB – which has been investigating Zillow over the practice for the last two years – this kind of co-marketing may be a RESPA violation. Zillow, of course, maintains that it is not.
“We believe our co-marketing program has, and continues to, allow agents and lenders to comply with the law while using our product,” Zillow Chief Financial Officer Kathleen Phillips told stockholders in May.
Phillips said in an earnings call on Tuesday that she plans to go to Washington, D.C., to work with the CFPB on a settlement. But if a settlement isn’t agreed upon, final resolution of the disagreement between the real estate website and the regulator could take time, according to a HousingWire report.
And if that happens, the CFPB could have a fight on its hands.
“We continue to believe that our acts and practices are lawful and that our co-marketing program allows lenders and agents to comply with RESPA, and we will vigorously defend any allegations to the contrary,” Zillow said in a statement.
Related stories:
Redfin takes on Zillow with $100 million IPO
Zillow on the lookout for data scientists to improve Zestimate
