Quashing The Circuit Split Over RESPA

Law360, New York (December 9, 2011, 1:14 PM EST) -- The U.S. Supreme Court has granted certiorari in a case turning on the interpretation of Section 8(b) of the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2607(b). Circuit courts are currently split as to whether Section 8(b) prohibits banks or companies from charging fees for services they did not perform, or instead prohibits only kickback or fee-splitting arrangements, in which the bank or company shares fees with another party. The case is on appeal from the Fifth Circuit Court of Appeals, which held that RESPA § 8(b) applies only to those fees which are split with another party. Freeman v. Quicken Loans Inc., No. 10-1042, (2011)....

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