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Wooten v. Quicken Loans, Inc., No. 08-11245

Real Estate Settlement Procedures Act Action Dismissed

In Wooten v. Quicken Loans, Inc., No. 08-11245, an action for violation of the Real Estate Settlement Procedures Act, the court affirmed the dismissal of the complaint where, in connection with a residential mortgage loan, charging a loan discount payment -- otherwise known as "points" or "discount points" -- to provide a specific, below-market interest rate did not constitute the "rendering of a real estate settlement service" within the meaning of 12 U.S.C. section 2607(b).

  • As the court wrote:  "Section 8(b) of the Real Estate Settlement Procedures Act ("RESPA") provides: (b) Splitting charges.   No 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 in connection with a transaction involving a federally related mortgage loan other than for services actually performed."

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