A couple sued their title company, arguing that the company violated RESPA Section 8(b) by splitting a closing fee. Under Georgia law, it is illegal for anyone other than a Georgia attorney to conduct a closing. The couple argued that because the title company could not conduct a closing under state law, its closing services could not be considered “services actually performed.” They claimed that if state law prohibits the company from conducting closing services, then splitting the closing fee with the settlement attorney was a violation of RESPA.
The defendants filed a motion to dismiss, arguing they provided actual services. The court granted the motion to dismiss, finding that actual services were performed even if those services may not be allowed under state law.
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