(CN) - Quicken Loans must defend the "unearned, undivided" fees it charges borrowers at the closing of a mortgage transaction, with the U.S. Supreme Court agreeing Tuesday to take up the case.
Tammy Foret Freeman is the lead plaintiff in the case, a consolidation of lawsuits filed by three couples who took out mortgages with Quicken in 2007. They also sued Title Source.
A Louisiana federal judge had thrown the consolidated lawsuit out on summary judgment, and a three-judge panel of the 5th Circuit affirmed last year.
The New Orleans-based court said Quicken's charges were permissible and noted it would have had to split the challenged fee with another party to have violated the Real Estate Settlement Procedures Act.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.