The one-year statute of limitations on Real Estate Settlement Procedures Act (RESPA) lawsuits could be the undoing of a class-action suit filed against Realogy Holdings, franchisor of some of the best-known brands in real estate, and mortgage lender PHH Mortgage Corp. The lawsuit alleges that the joint venture between Realogy and PHH is a “sham” entity that violates RESPA, but Realogy and PHH scored a big win last week in their quest to get the case thrown out of court.
- A lawsuit alleging that PHH Home Loans, a joint venture between Realogy Holdings and PHH Mortgage Corp., facilitated "unlawful referral fees and kickbacks" was challenged due to the RESPA statute of limitations.
- On April 5, the court granted the motion to dismiss the lawsuit.
- The decision is a win for Realogy and PHH right now, but options still remain open to the plaintiffs, too.