Courts Disagree Over Mortgage Fee Limits

From the Washington Post:

The latest case, handed down Aug. 4 by the U.S. Court of Appeals for the 3rd Circuit ( Santiago v. GMAC Mortgage Group Inc. ), involved a class-action suit against GMAC, one of the country's highest-volume home lenders. A GMAC Mortgage customer alleged that the company marked up various fees in connection with the closing of his loan, and thereby violated HUD's ban. Citing earlier federal appellate court rulings that HUD lacked statutory authority to ban markups, GMAC asked the district court to throw out the suit. It did. The home buyers then took the case to the appellate level, where HUD's position on markups was affirmed. The 3rd Circuit covers Pennsylvania, New Jersey, Delaware and the U.S. Virgin Islands.

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