Santiago et al v. GMAC Mortgage Group, Inc., et al

The Third District Court of Appeals found, in a decision filed August 4, 2005, that RESPA Section 8(b) provides consumers a cause of action for illegal markups, but not for overcharges, and provided definition for when a lender's markups may violate the law.

The question of whether the specific markups in the Santiago case violated RESPA was remanded to the U. S. District Court for the Eastern District of Pennsylvania, but the Court of Appeals outlined three criteria to use in determining whether markups are legal under the law:
Does the lender itself provide a service that is ancillary to that supplied by the third party provider?
Is the ancillary service more than nominal in nature?
Does the ancillary service justify the added cost?