Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Court clarifies RESPA role on excessive fees
WASHINGTON (4/16/08)—The Eleventh Circuit Court of Appeals has ruled that the Real Estate Settlement Procedures Act” (RESPA’s) Section 8 (b) does not govern excessive fees because it is not a price control provision, according to the Credit Union National Association (CUNA). The relevant section bans fees “other than for services actually performed.” The ruling was in Friedman v. Market Street Mortgage Corp. Plaintiffs in the case had accused the defendant lender of charging a fee that was excessive in relation to services actually rendered. Plaintiffs argued their position was supported by a statement of policy issued by the Department of Housing and Urban Development (HUD) in 2001. But the court rejected the plaintiff’s argument and the HUD policy statement. It ruled that Section 8 (b) prohibits only charges for services that are not performed, and does not allow courts or others to divide permissible charges into what may deemed reasonable and unreasonable. The court cited previous cases, and the statutory language in RESPA. It said the law was clear and not ambiguous, and that it does not allow The Department of Housing and Urban Development to impose its own interpretation. The court also said the section was aimed at banning abusive practices, not as a means of creating broad price controls.


RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
12 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
12 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
13 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
14 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
14 hours ago