A Kansas couple filed a lawsuit accusing their servicer of entering into an illegal fee-sharing arrangement and violating the payment posting rule.
The borrowers claimed the fee-sharing arrangement is an illegal kickback prohibited by 12 C.F.R. § 1024.14 and 12 U.S.C. § 2607. The company argued the case should be dismissed because those provisions only apply to fees imposed at origination.
Read on to see how a judge ruled.
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