A loan originator receives $500 from an appraisal management company for each loan file referred. This arrangement is:
Correct Answer
C) Prohibited under RESPA Section 8
This is a clear violation of RESPA Section 8, which prohibits kickbacks and referral fees. The payment is an unearned fee that violates federal law regardless of disclosure or licensing status.
Why This Is the Correct Answer
This is a clear violation of RESPA Section 8, which prohibits kickbacks and referral fees. The payment is an unearned fee that violates federal law regardless of disclosure or licensing status.
More Origination Questions
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For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
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A borrower's Loan Estimate shows total closing costs of $8,000. At closing, the actual total closing costs are $8,650. Assuming no changed circumstances occurred, what is the maximum tolerance violation?
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A borrower locked a rate 45 days ago for a 60-day period. Due to title issues, closing will be delayed by 10 days beyond the lock expiration. The borrower wants to extend the lock. What factor is LEAST likely to affect the extension decision?