It is no secret that most people can’t afford to pay cash upfront for their homes. So, people secure financing from a lender, make monthly payments to the lender and still live in and own the home. One such lender is Quicken Loans. In this case, the United States Supreme Court will decide whether federal mortgage law makes it illegal for companies like Quicken Loans to charge unearned fees at closings that are not part of a fee-sharing agreement or kickback.
The plaintiffs in this case are three couples who obtained home loan financing from Quicken Loans in 2007. They are alleging that Quicken Loans charged unearned fees in violation of the Real Estate Settlement Procedures Act. The plaintiffs were charged loan-discount fees, but their interest rates were not reduced. Quicken denies that the loan fees were illegal.
As experienced debt relief attorneys, we know how difficult it can be to go through the home-buying process. There are a lot of legalities and paperwork involved. We hope companies like Quicken Loans are not taking advantage of the complexities of the home loan process and charging home buyers extra, unearned fees. Many people are already struggling to fend off foreclosure or bankruptcy, and the addition of illegal fees into the loan could be enough to tip the scales towards pursuing those options.
It should be helpful to consumers that the Supreme Court of the United States agreed to hear this case. As the economy slowly climbs out of recession, we need a fair and rational home loan industry.
If you are thinking of filing for bankruptcy, contact an Michigan Bankruptcy attorney today