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ARTICLE · 12 OCTOBER 2011

Supreme Court Docket Report - October 11, 2011

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Section 8(b) of the Real Estate Settlement Procedures Act ("RESPA") provides that "[n]o person shall give [or] accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed."

United StatesLitigation, Mediation & Arbitration

Originally published on October 11, 2011

Keywords: Real estate settlement procedures act, RESPA, unearned charges, federal, mortgage loan,

Today the Supreme Court granted certiorari in one case of interest to the business community:

Real Estate Settlement Procedures Act — Prohibition on Unearned Charges

Section 8(b) of the Real Estate Settlement Procedures Act ("RESPA") provides that "[n]o person shall give [or] accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed." 12 U.S.C. § 2607(b). The Supreme Court granted certiorari today in Freeman v. Quicken Loans, Inc., No. 10-1042, to decide whether this provision prohibits a real estate settlement services provider from charging an unearned fee only if the fee is divided between two or more parties.

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