Zillow faces renewed RESPA claims in amended Taylor suit
hird amended complaint narrows to 5 plaintiffs and cites a study estimating $2,881 higher costs per ZHL loan.
The latest development in the Taylor suit against Zillow has significant implications for the real estate industry, particularly in regards to compliance with the Real Estate Settlement Services and Procedures Act (RESPA). The third amended complaint, which narrows down to five plaintiffs, alleges that Zillow's Zillow Home Loans (ZHL) business has engaged in practices that violate RESPA, specifically with regards to kickbacks and referral fees.
This renewed focus on RESPA claims is noteworthy, as the industry has been closely watching the case's progression. A study cited in the complaint estimates that ZHL loans come with $2,881 higher costs per loan, which could have far-reaching consequences for Zillow and other players in the market. If the allegations are proven, it could lead to increased scrutiny of similar business practices across the industry.
As the case moves forward, industry stakeholders should watch for potential impacts on Zillow's business model and the broader real estate market. Specifically, companies involved in mortgage lending and real estate services should review their own compliance with RESPA and ensure they are not engaging in similar practices. Additionally, market participants should keep an eye on any future developments in the Taylor suit, as it may set important precedents for the industry.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.