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Supreme Court Rejects Suit on Loan Discount Fee

The Supreme Court says home loan applicants cannot sue a mortgage company for charging them a loan discount fee without giving them a loan discount.

Mortgage
CNBC.com
Mortgage

The high court on Thursday unanimously ruled for Quicken Loans, which was fighting a lawsuit from Tammy and Larry Freeman and other families. The company argued Congress wrote the law to say only that the fee would be illegal if Quicken split it with someone else. The justices, in an opinion written by Justice Antonin Scalia, agreed.

The Freemans and other families in Louisiana got loans from Quicken Loans in 2007, and sued after paying a loan discount fee without getting a discount. A federal judge threw the lawsuit out, saying the Real Estate Settlement Procedures Act made the lawsuit improper.

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