The Supreme Court of the United States considered oral arguments recently in its second high-profile case this session that addresses key issues under the Real Estate Settlement Procedures Act.The case is First American Financial v. Edwards, in which the fundamental question is whether a private purchaser of real estate settlement services has standing under Article III, §2 of the U.S. Constitution to maintain an action in federal court in the absence of any claim that the alleged violation affected the price, quality or other characteristics of the settlement services provided. In this case, respondent Denise Edwards purchased a home in Cleveland in September 2006, obtaining title insurance through Tower City, which issued policies on behalf of First American. Edwards paid $455.43 towards the purchase of the policies (one for her lender and one for herself); the seller of the home paid $273.42.

Two significant issues related to the Real Estate Settlement Procedures Act have received fresh attention at the Supreme Court, which is expected to make landmark rulings next year. The U.S. Solicitor General and a group of state attorneys general filed briefs in Freeman v. Quicken Loans, a case in which the high court will likely determine the ability of the mortgage lending industry to decide what to charge borrowers at the point of origination. RESPA Section 8(b) provides that “no person shall give and no person shall accept any portion, split or percentage of...