Calling out loan underwriting fees

Law of the Land

EMBRACE. FOCUS. EXECUTE. Build your 2019 roadmap to success with 4,000+ real estate leaders.
Inman Connect New York | January 29 - February 1, 2019

The Alinda and Armando Martinez refinanced their home loan, obtaining a new loan from Wells Fargo. Wells charged the Martinezes an $800 underwriting fee, which the Martinezes alleged was excessive and not reasonably related to Wells Fargo’s actual costs of underwriting their new loan.

The Martinezes filed suit against Wells Fargo on their own behalf and for a class of others, alleging that Wells Fargo violated the prohibition of unearned fees in Section 8 of the U.S. Real Estate Settlement Procedures Act (RESPA), and was also "unfair," "fraudulent" and "illegal," all in violation of California