Lenders who at closing charge home buyers marked-up fees for services provided by third parties can be sued under federal law, the 2nd U.S. Circuit Court of Appeals has ruled. Homeowners charged they were the victims of overcharges by Wells Fargo directly and of markups that Wells Fargo charged for services provided by a third party. The 2nd Circuit split from its sister circuits in finding a cause of action for such markups under the Real Estate Settlement Procedures Act.
2nd Circuit: Lenders Cannot Mark Up Outside Service Fees
New York Law Journal
September 15, 2004