Some organizations like MBA have basically told its members that MSA’s are disliked by the CFPB so you should just avoid them. Do you agree?

I agree that that’s what the MBA says. I think each individual organization needs to make their own risk assessment to determine whether an MSA is something they can properly manage. I certainly identified the challenges that there are in management of these compliance risks, not just in terms of what your agreement is and what your compliance structure is, but also that you can control at all levels of your organization, that the agreement really is just for advertising and marketing and not as a means to get around the referral fee prohibition. That’s a challenge today, but I think it’s possible.

Answered By: Brian Levy