When an Arizona homebuyer took advantage of a special downpayment assistance program from her mortgage lender, she didn’t expect to repay what the lender called a “gift” from a charitable organization through an increased mortgage interest rate later. That is what this plaintiff alleged in a lawsuit seeking class-action status, in which she also asserted that the “gift” was a kickback in violation of RESPA Section 8. The lender and nonprofit, however, compared the “gift” to a yield spread premium. Was this permissible under RESPA?
TO READ THE FULL STORY
Cover Story: