OCC 2002-3
OCC Bulletin
Subject: Real Estate Settlement Procedures Act
Description: Examiner Guidance--Mark-Up of Settlement 
             Services Fees
Date: January 15, 2002

TO:  Chief Executive Officers and Compliance Officers of 
     All National Banks and All Examining Personnel


On July 5, 2001, the Court of Appeals for the Seventh 
Circuit held that Section 8(b) of the Real Estate 
Settlement Procedures Act (RESPA) was not violated when a 
title company marked-up a fee of a third-party settlement 
servicer without performing any additional services 
(Echevarria v. Chicago Title and Trust Co., 256 F.3d 623 
(7th Cir. 2001)).  Although the Department of Housing and 
Urban Development has stated that this practice is 
prohibited by section 8(b) of RESPA, the court's ruling 
holds that this practice, in certain circumstances, is 
not a violation in the Seventh Circuit. 

Attached is Federal Financial Institutions Examinations 
Council (FFIEC) guidance to assist examiners in applying 
the Seventh Circuit's ruling.  This guidance represents 
the supervisory policy of the FFIEC agencies; it does not 
insulate an institution engaged in mark-ups from 
litigation risk, even where the property is located 
within the Seventh Circuit (Wisconsin, Illinois, and 
Indiana).

Questions about this issuance and the attached examiner 
guidance may be directed to your supervisory office or 
the Compliance Division at (202) 874-4428.




___________________________
David G. Hammaker
Deputy Comptroller for Compliance


Attachment