H
omebuyers have filed six lawsuits against a national mortgage company and a local real estate brokerage, alleging an improper referral arrangement that led to excessive closing fees and higher interest rates. The suits claim CrossCountry Mortgage paid Raleigh Realty $15,000 per month for exclusive referrals in violation of the Real Estate Settlement Procedures Act (RESPA).

    According to the filings, CrossCountry would pay Raleigh Realty a monthly fee "disguised as payments for legitimate services" in exchange for receiving all buyer referrals from the brokerage. The referral arrangement allegedly resulted in higher interest rates and closing fees for borrowers.

    Ryan Fitzgerald, owner of Raleigh Realty, instructed his agents to exclusively use CrossCountry Mortgage for client financing needs, threatening to withhold leads if they didn't comply. Agents who provided clients with mortgage information from other lenders were reprimanded or suspended.

    CrossCountry Mortgage has over 7,000 employees operating across the US, while Raleigh Realty is an independent brokerage with around 30 agents in North Carolina. The company declined to comment on the pending lawsuits, citing a policy of not commenting on legal matters.