Supreme Court Sides with Real Estate Fees

 Posted on December 00, 0000 in Naperville Real Estate Attorney

The Supreme Court has ruled in favor of Quicken Loans in the case brought against them by three families from Louisiana. The result may make it ultimately more expensive for families to purchase new homes. Many families have proposed in the past that administrative fees were unfairly levied against them by mortgage companies when services were not provided.

The families from Louisiana have all claimed that the company Quicken Loans had improperly charged them up to $1,100. These fees were from three separate residential mortgage closures back in 2007. It was supposed that the fees were paid in order to receive an interest rate reduction that was never given. The Detroit-based company maintained throughout the litigation that these families did receive the reductions.

The crux of the legal argument was a real estate law meant to be a provision for consumer protection back in 1974. These rights are afforded to any homebuyer under the Real Estate Settlement Procedures Act. This act is designed to protect homebuyers from excessive fees and kickbacks while financing their home. It also requires the full disclosure of fees, interest rates, and any additional costs associated with the financing process.

Since the high court's ruling against the consumer in this recent case, it may be harder for homebuyers to sue mortgage lenders for overcharges. Justice Antonin Scalia wrote the legal opinion that because Quicken Loans did not split any fees with other agencies or agents, which is spelled out specifically in the act from 1974, there is no legal recourse that the Louisiana based families can take. The Supreme Court intended to judge this case because of the differences in previous legal standards set among judicial courts. Since the ruling on May 24th, there is a uniform legal standard regarding issues with the R.E.S.P.A. While this limits the reach of the consumer protection act of 1974, there are state laws that supersede any ruling by the Supreme Court.

If you feel that you were unfairly charged for any mortgage service or if you are unaware of your rights under the R.E.S.P.A. please contact an experienced real estate lawyer in the greater Chicagoland area. The law offices of Dennis P. Lindell will walk you through all the intricacies of buying your new home.