A Kentucky law firm, Borders & Borders, PLC, is paying a high price for their illegal real estate kickbacks as they face a federal lawsuit from the Consumer Financial Protection Bureau.  Recent investigations have shown that the law firm had been illegally paying kickbacks for real estate settlement referrals, which in turn hurt honest companies and lowered competition from other companies offering real estate closing solutions.

 

The illegal actions committed by Borders & Borders, PLC, went against the Real Estate Settlement Protection Act (RESPA), put into effect by the CFPB in 2011.  RESPA was designed to help protect consumers from unnaturally high settlement costs and to make mortgage financing clearer across the board.  By forming a network of nine joint ventures with real estate closing solution companies in the local area, Borders & Borders directly profited from referred settlements and did damage to other area competitors.

 

What does this mean for real estate professionals?  It means that the CFPB is painfully aware of these illegal practices and ready to take action against violators.  According to Richard Cordray, director of the CFPB, “The CFPB will continue to pursue companies that seek to profit from convoluted arrangements that limit competition and hurt honest businesses.”

Real Estate Closing Solutions is an independent title and closing agency with no lender, builder or REALTOR ownership. We focus on one thing – to give unbiased and equal servicing expertise to all parties in the real estate transaction.  To learn more about what RECS can do for you, contact us today at 407-615-8550, read our website or stop by our office.