Real Estate Law · August 21, 2026 · 7 min read
This morning HousingWire reported that a Missouri federal judge narrowed a class-action lawsuit against Veterans United Home Loans but allowed the core RESPA claims to proceed. State consumer-protection counts were dismissed, but the Real Estate Settlement Procedures Act allegations—kickbacks, basically—survived the motion to dismiss.
You might be thinking, "KKS, I'm shopping for homes in Harford County, not Missouri. Why does this matter to me?"
Fair question. Here's why: RESPA is federal. It protects you whether you're buying in Bel Air, Baltimore City, Prince George's County, York, or Wilmington. And when a judge lets a RESPA case move forward, it's a reminder that the guardrails around your transaction are real, enforceable, and worth understanding before you sign anything.
Let me walk you through what RESPA does, what this lawsuit alleges, and what it means for you as a Maryland (or DC, PA, or DE) buyer or seller in 2026.
The Real Estate Settlement Procedures Act has been around since 1974. Congress passed it to stop shady kickback schemes where lenders, title companies, and settlement-service providers would pay each other referral fees under the table, inflating your closing costs in the process.
RESPA does a few critical things:
When I sit down with a first-time buyer in Harford or Cecil County, I explain that every name on your closing paperwork—title company, home inspector, lender, insurance agent—should be there because they're the best fit for you, not because someone's getting a cut behind the scenes.
That's the law. HUD enforces RESPA, and the Consumer Financial Protection Bureau has authority too.
According to the HousingWire piece, the plaintiffs claim Veterans United violated RESPA by accepting illegal kickbacks tied to title insurance and real estate services. The judge dismissed state-law claims but ruled the RESPA allegations plausible enough to survive dismissal and move to discovery.
I won't speculate on the merits—cases like this can take years, and settlements are common. But the fact that the complaint cleared this procedural hurdle tells you RESPA enforcement is alive and well, even in 2026.
Veterans United is a big player in the VA-loan space. A lot of service members and veterans in Maryland, especially around Aberdeen Proving Ground and Joint Base Andrews, have used VA financing. If you're one of them, you deserve to know your lender can't steer you toward a title company or insurance agent just because they're kicking money back.
You've probably heard me mention the NAR commission settlement a dozen times this year. The court upheld it in August, and now every buyer in Maryland, DC, Pennsylvania, and Delaware who works with a REALTOR® signs a buyer-agency agreement before touring homes.
That agreement spells out compensation. It's transparent. It's in writing. It's the opposite of a kickback.
RESPA and the NAR settlement share the same DNA: disclosure, transparency, and protecting consumers from conflicts of interest. When a lender can't legally pay a referral fee to a real estate agent (RESPA, Section 8), and when a buyer must agree in writing to pay their agent or arrange for the seller to cover it (NAR settlement), you've got two layers of protection working in tandem.
At my last open house in Baltimore County, a couple asked me, "Why do we need to sign this buyer agreement? Our last agent in 2023 didn't make us do that." I explained the rule changed—not just because of NAR, but because the entire industry is moving toward clearer, cleaner transactions. RESPA has been pushing that direction for fifty years. The settlement just caught up.
Here's the practical part. If you're buying a home in any of the markets I serve—Cecil, Harford, Montgomery, Howard, Anne Arundel, Charles, Baltimore County, Baltimore City, Prince George's, DC, York, Lancaster, or New Castle County—these steps will keep you on the right side of RESPA and out of trouble:
When your lender suggests a title company or your agent recommends a home inspector, ask: "Do you have a business relationship with them? Are you receiving any compensation for this referral?"
Affiliated business arrangements (AfBAs) are legal under RESPA if disclosed. But you have the right to shop around. I give my clients a list of three inspectors, three lenders, and let them choose. No one pays me a dime for those referrals, and I put that in writing.
I know these forms look like tax returns written in Klingon, but they matter. Your Loan Estimate (LE) is due within three business days of applying for a loan. Your Closing Disclosure (CD) is due three business days before closing.
Compare them line by line. If a fee jumps or a new charge appears, ask why. Your lender is required to explain it. And if something smells wrong, you can walk. I wrote about a settlement-statement surprise here that tripped up one of my buyers in Harford County.
You have the right to review your Closing Disclosure three business days before closing. If the lender or title company hands you a revised CD the morning of closing and says, "Just sign," you can delay. RESPA gives you that power.
I've paused closings before. It's uncomfortable, but it's your money and your legal rights.
As of this week, Freddie Mac's Primary Mortgage Market Survey pegged the 30-year fixed rate at 6.65% for the week ending August 20, 2026. That's down slightly from last week. Rates have been bouncing between the mid-6s and low-7s all summer, which makes pre-approval and rate locks more important than ever.
If you're working with a lender who's pushing you toward a particular title company or insurance agent without explaining why, pause. RESPA exists to protect you from exactly that pressure.
I mean that. I'm a REALTOR®, not a lawyer. If you believe you've been the victim of a RESPA violation—an undisclosed kickback, an inflated settlement fee, or a lender who steered you toward a particular provider for their own benefit—talk to an attorney who specializes in real estate law.
Maryland has excellent consumer-protection statutes, and the Maryland REALTORS® association can point you toward resources. Same goes for DC, Pennsylvania, and Delaware.
Because RESPA is federal, and the principles in this case apply every single time you sit down at a settlement table in Bel Air, Annapolis, York, Wilmington, or Capitol Hill.
I spent two decades teaching high school students to ask questions, read the fine print, and stand up when something didn't make sense. Real estate is no different. You're about to spend hundreds of thousands of dollars, and the law gives you tools to make sure no one's skimming off the top without your knowledge.
The Veterans United case is still in early stages. Discovery will take months, and we may never see a trial. But the fact that a federal judge said, "Yes, these RESPA claims are serious enough to investigate," should remind all of us—agents, lenders, title companies, and buyers—that the rules matter.
If you're ready to start your home search in Maryland, DC, Pennsylvania, or Delaware and you want someone who'll explain every line item, every referral, and every form in plain English, let's talk. I've got active listings across the region, and I promise you'll never sign something you don't understand.
And if you're still trying to wrap your head around this summer's wild market—14% of contracts falling through in July, inventory creeping up, prices wobbling—I covered that earlier this week. It's a strange moment to buy or sell, but it's also a moment when knowing your rights makes all the difference.
RESPA isn't sexy. It won't get likes on Instagram. But it's one of the few federal laws standing between you and a closing table full of hidden fees. Worth understanding, worth enforcing, and worth talking about on a quiet Friday in August.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“Buy land — they are not making it anymore.” — Mark Twain