Freeman v. Quicken Loans Inc., No. 10-1042; U.S. Supreme Court; opinion by Scalia, J.; decided May 24, 2012. On certiorari to the U.S. Court of Appeals for the Fifth Circuit.
The Real Estate Settlement Procedures Act (RESPA) provides, as relevant here, that “[n]o person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service … other than for services actually performed.” See 12 U.S.C. § 2607(b). Petitioners, three couples who obtained mortgage loans from respondent, filed separate state-court actions, alleging that respondent had violated § 2607(b) by charging them fees for which no services were provided in return. After the cases were removed to federal court and consolidated, respondent sought summary judgment, arguing that petitioners’ claims were not cognizable under § 2607(b) because the allegedly unearned fees were not split with another party. The District Court agreed; and because petitioners had not alleged any splitting of fees, it granted respondent summary judgment. The Fifth Circuit affirmed.
