"Several other borrowers also filed suits in June and July, accusing the national lender of paying Raleigh Realty $15,000 per month in 2021 and 2022 in exchange for exclusive client referrals. All of the plaintiffs, including VonBlohn, are seeking unspecified damages under RESPA and North Carolina's Unfair and Deceptive Trade Practices Act, arguing they could have obtained lower mortgage rates and fees if not for the alleged steering."
"CrossCountry also argued that VonBlohn's complaint does not show that he was overcharged or otherwise injured, a requirement for standing under both federal and state law. The company also maintained that its co-marketing deal with Raleigh Realty was lawful, saying it paid $15,000 a month for actual website marketing services, which falls under RESPA's safe harbor for services actually performed."
"Raleigh Realty did not file a dismissal motion on Sept. 29, but instead asked the court for a time extension, moving its deadline to respond to the complaint from Sept. 29 to Oct. 16, 2025. CrossCountry has not filed a motion to dismiss on the other suits, but they remain active. Each separate suit's plaintiffs, along with the defendants, filed joint motions seeking to extend deadlines at the end of September."
Multiple borrowers filed suits alleging CrossCountry paid Raleigh Realty $15,000 per month in 2021 and 2022 in exchange for exclusive client referrals. Plaintiffs, including VonBlohn, seek unspecified damages under RESPA and North Carolina's Unfair and Deceptive Trade Practices Act, claiming steering led to higher mortgage rates and fees. CrossCountry moved to dismiss VonBlohn's suit, arguing the claim was filed after RESPA's one-year statute of limitations and that VonBlohn has not shown overcharge or injury required for standing. CrossCountry defends the payments as lawful co-marketing for website services under RESPA safe-harbor. The cases remain pending with scheduling extensions.
Read at www.housingwire.com
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