RESPA Class Action Update: Alleged MLS Kickback Could Cost Agents

Some real estate agents were getting a deal that seemed too good to be true; and as it turns out, they might be getting more than they bargained for.

The US District Court of Georgia denied a motion to dismiss the class action lawsuit brought against First Multiple Listing Service (FMLS) and will hear the case against the MLS provider that allegedly paid illegal kickbacks directly to participating brokers and agents.

As more and more class action suits are brought against agents and brokers, the cost to wallet and career needs to be considered. Oh, and we haven’t even thought about possible jail time.

As the industry tightens up regulations and restrictions and the enforcement of the Consumer Financial Protection Bureau (CFPB) begins to pick up even more steam after the naming of a director, well-hidden and convoluted scams like this remind us to maintain only the highest professional standards.

For the full complaint, click here.

  • Rachel W.

    At least FMLS isn’t getting off the hook too quickly. However, it is sad that unsuspecting agents may very well pay huge fines and serve jail time, just what they needed after a hard few years. Agents really do need to be careful and make sure they know and follow the laws.

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  • TM

    I wouldn’t mind if the person who put this information out there to contact me. I have been dealing with some issues here lately about certain things and have in my email communication with those directly questioned. If you would like leave a response. Thank you.