A residential mortgage loan borrower alleged that his mortgage broker joined with an appraisal company in an illegal scheme to inflate appraisals in order to induce borrowers to enter into high-cost, adjustable-rate mortgages that they were unable to afford. The borrower also alleged that the broker received a yield spread premium from the mortgage lender as a kickback for securing a loan with a higher interest rate. The lower court dismissed the claims, but a federal appeals court disagreed.