Heimmerman v. First Union

First Union Mortgage Corporation appealed the district court's grant of class certification to a class of plaintiffs seeking damages for First Union's alleged violation of Section 8 of RESPA. On September 18, 2002, the 11th Circuit Court of Appeals vacated the district court's grant of class certification and remanded the case for further proceedings. In so doing, the 11th Circuit took the position that HUD's 2001 Statement of Policy (SOP) on yield spread premiums may be retroactively applied to this case, that the SOP is entitled to deference, and that the SOP's interpretation of RESPA is contrary to and, in effect, overrules Culpepper III. The 11th Circuit held that the district court abused its discretion in granting class certification because the 2001 SOP demonstrates that the district court applied the wrong legal standard.