At oral arguments two weeks ago, the justices of the U.S. Supreme Court seemed skeptical of a homeowner’s claim that a kickback scheme violated the Real Estate Settlement Procedures Act without showing any actual injury was suffered.
In First American Financial Corp v. Edwards, plaintiff Denise Edwards purchased a home in Ohio. In the transaction, her settlement agent referred her title insurance to First American Title.
Edwards claims that her settlement agent was part of a network of individual title companies that had entered into exclusive referral agreements with First American that involved kickbacks that violated RESPA.
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