Digital Mortgage Comparison: Shopping Platforms

On 02/07/2023, the Consumer Financial Protection Bureau released a protective advisory to shield Americans from deception on online mortgage comparison buying sites. Largely due to the risk of manipulation and bias mortgage shoppers may encounter. The algorithm of these platforms are changed to produce comparison choices that favor more expensive or favored suppliers.

The CFPB advisory, outlines how companies violate the Real Estate Settlement Procedures Act (RESPA) and are deceptive under the Federal Trade Commission Act because these practices steer shoppers to lenders with “pay to play” tactics and illegally refer people to lenders that pay referral fees.

The advisory can be found HERE.