Not be a "nay-sayer" but which section of RESPA are you claiming is violated by not paying the abstractor? RESPA is a consumer protection statute. Maybe someone else who knows more about RESPA can elaborate, but I don't think RESPA creates a right, or remedy, for third-party contractors.
I can see where maybe the mark-up of the search may be a violation of section 8, however, around here the search fee and exam fee are all grouped together. Who is to say that the mark up of a search isn't for the actual examination of the search? Even if they are broken down, if they are adding value to the product the mark-up is probably acceptable. For example, they may be able to claim that co-ordinating the search by placing the order, tracking the order, paying for the search, etc., is of value. The client does have expenses beyond just the fee that the abstractor charges.
I do not think that non-payment is acceptable, but I don't think that it is a RESPA matter. Most likely, it is a civil matter that HUD is not going to get involved in. I think that there should be some remedy but as far as I am aware, the best remedy is a lawsuit (and often, that is not worth pursuing).
You will have to let us know if HUD takes any kind of action. It would be nice, but I will be surprised.
Best,
Robert A. Franco
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