It was recently announced by the U.S. Supreme Court that "unearned" fees charged by service providers in real estate transactions are not against the law unless they are split amongst more than one party. This presents some uproar with many as it is believed to bring back the unethical practices of creating unnecessary fees and/or raising up fees by service providers that both the Justice Department and Department of Housing and Urban Development have fought against.
It is important to note two things:
- This decision will not affect state laws against individual fees and therefore will not override certain practices
- The Consumer Financial Protection Bureau still has an independent set of regulations in which it can place upon companies which it feels are being unethical. This means that this decision will most likely not give free reign to all service providers looking to charge "unearned" fees.
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