Martinez

I. Introduction

Plaintiffs Alinda and Armando Martinez (the “Martinezes”) seek review of the dismissal of their claims under Section 8(b) of the Real Estate Settlement Procedures Act (“RESPA”), 12 U.S.C. § 2607(b), and California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§ 17200, et seq. The Mar- tinezes contend that RESPA Section 8(b)’s prohibition against “unearned fees” reaches the “overcharging” allegedly com- mitted by Wells Fargo in this case. They also argue that Wells Fargo’s conduct was “unfair,” “fraudulent” and “illegal,” all in violation of the UCL.

We affirm the dismissal of the RESPA claim because the clear and unambiguous language of RESPA Section 8(b) does not reach the practice of “overcharging.” We affirm the dis- missal of the three UCL state law claims because the claims alleging “unfair” and “fraudulent” conduct are preempted by the National Bank Act, and because the allegations of “ille- gal” conduct fail to state a claim.

II. Facts and Procedural Background

According to the complaint, the Martinezes refinanced their California home mortgage loan through Wells Fargo. Wells Fargo charged the Martinezes an underwriting fee of $800…