Freeman v. Quicken Loans, Inc. (2011)
- Docket
- 10-1042
- Decided
- 2011-01-01
Summary
Question: Does Section 8(b) of the Real Estate Settlement Procedures Act prohibit a real estate settlement services provider from charging an unearned fee only if the fee is divided between two or more parties? Conclusion: Yes. Justice Antonin Scalia, writing for a unanimous Court, affirmed the Fifth Circuit. The Supreme Court held that a charge for settlement services must be divided between two or more people in order to be actionable under RESPA. The language of the statute is unambiguous and cannot be understood to cover the fee in this case. Use of the words "portion", "split", and "percentage" all lead to an understanding that a fee must be divided between two or more parties.