CFPB Examiner Says Buying Zillow Leads Non-compliant

The header says it all.   CFPB examiners are asking mortgage companies if they are buying Zillow leads then explaining why that is non-compliant.  This is a massive moment to pause for Lenders.

42 Discussions on
“CFPB Examiner Says Buying Zillow Leads Non-compliant”
  • Hi and thanks for the info! Does this pertain to Zillow ONLY? What about buying leads from Lending Tree or any of the other lead companies?

  • Hi and thanks for the info! Does this pertain to Zillow ONLY? What about buying leads from Lending Tree or any of the other lead companies?

  • Can you please clarify, Zillow Leads from Long Form Zillow Leads? Are you saying partnering with an agent on Zillow is non-compliant?

  • What does this mean for agents? Does this apply to them as well? If so this could shut Zillow’s revenue completely down.

    • Good question, since we are paying to advertise ourselves after giving Zillow our listings — I wonder too if it will impact the agent side of the business?

      • Don’t include me in “we”. I don’t syndicate my company’s listings to Zillow. I don’t pay any money to Zillow. I do use Zillow’s free resources.

  • Texas Dept of Savings & Mortgage Lending told me this years ago. RESPA Violation.
    I let my license lapse and was selling leads to co-workers.
    I asked them how other lead sellers got away with it and they said they were working on the problem.
    Thankfully I didn’t get any fines… Just a C&D order from them.
    .
    Was a really weird experience. Scared to death I was about to lose my license.

    • I always worried about the “co” marketing with agents and therefore did not do it. According to a Zillow insider (whistle blower) there are no “co” payment for this marketing. Agents were told to go find a loan officer to pay for the marketing. Once they figure out it’s worthless they are several months into the deal. No worries, by that time the agent has been funneling one or two deals to the next LO ready and willing to whip out the Visa card. Zillows whole marketing deal screams “pay to play”

  • Same question.. zillow long form or zillow comarketing.

    Zillow long form is exactly the same as buying leads from any other company in the country. Zillow CoMarketing is a little different. I see the compliance issue in comarketing with realtors.

    • Please confirm this. It would seem that if it was all leads like long form the whole lead industry will be gone. I think this is for the lead sharing portion.

  • Wondering if they are questioning the co-marketing or possibly the Zillow long form leads.

  • All agents and lenders should cease buying leads from these companies that undercut and undermine our industry anyway! I hope they do the same on the agent side of the business, because I refuse to give them any more money than I am essentially forced to do now. They steal our listings from us, then make us pay them for the leads they generate. That’s how I see it.

  • Just spoke to a Zillow rep yesterday. Have a phone meeting again tomorrow to finalize getting setup for the long form?

    I don’t see how Zillow long form leads are any different than any other lead provider? Guess I’ll put this one on hold.

    • The issue is it’s exclusive and comes as an endorsement. Since most people getting Zillow leads from agents are paying them a referral or “paying” for marketing, it makes it illegal.

  • I can’t find this anywhere in Google. Do we have another source from the CFPB for clarification? I hope it applies to Co-Marketing because that is straight up non-compliant. Long Form seemed a little more compliant.

  • Hey Zillow, looks like the chickens are coming home to roost; you leaching, data-stealing, pieces of scoundrel- garbage.

  • I think they are wrong at least partially on this. I think they are referring to Zillow selling the long form leads, not necessarily the leads that come from advertising on Zillow. Zillow has been systematically getting a mortgage broker license in each state and now has licenses in about 35 various states. As a licensed mortgage broker they can sell leads to other licensed mortgage brokers, in the same way that Lending Tree can. If they say what Zillow is doing with their long-form leads is a RESPA violation, then Lending Tree and Lead Point and all the others are violating it too. I think what they really mean is that an LO may be in trouble if they are buying leads from Zillow in states that Zillow isn’t a licensed mortgage broker in.

    However, I do see a bigger problem coming down the road for Zillow based on the Prospect Mortgage Consent Order which basically says the LO partially paying for the agents advertising on Zillow is illegal.

  • I dont know…..I googled this and went thru the first 5 pages and there is nothing on Google about this at all. Not even this article. I was told that if you co-market and the agent is sending you EVERY lead, whether or not they asked for a lender…..this was a violation. You cant send leads who dont ask for a lender to your lender. However, if you co-brand and they click on the lender or request mortgage information, there is no violation. This is why Zillow stopped sending all agent leads to the LO.

    • Every lead? and they want the borrower to shop and it’s a violation? That does not make sense, maybe a DNC violation for the phone number, not if you are shopping and I am selling I can find you on Facebook and a million other places to give you my offer. The violation must be with the Way Zillow is set up as a lead provider giving referrals maybe as a licensed lender? It has to be clear, and really nice these people dump this on the beginning of buying season. Good Grief to many regulations here

  • I think they are looking at this as non compliant because you buy it with an agent and any leads that pan out you are doing with the specific agent. It’s like you are buying his (her) business to work leads with him (her)

  • Maybe the title is wrong should read: CFPB getting hammered by Trump and needs to build war chest- Zillow looks like an easy target for 180 million dollar fine. True story read it in the Fake News!

  • You have no idea what your are talking about. Top of the food chain? What does that mean? Do you just make stuff up?

  • If you listen to the last 15 seconds of the video, Brian indicates that the leads he’s speaking of are the co-branded leads with Realtors. I just spoke to a Zillow rep and although they can’t say anything and their legal dept is working on this, the long form and rate quotes leads are not part of this compliance issue.