A mortgage broker has an affiliated relationship with an appraisal management company where the broker's spouse owns a 20% interest. The broker refers all loans to this AMC but charges borrowers the same appraisal fee regardless of which appraiser is used. This arrangement:
Correct Answer
B) Is permissible if the 20% ownership is disclosed in the AfBA disclosure
Under RESPA, a spouse's ownership interest creates an affiliated business arrangement that must be disclosed. A 20% interest meets the ownership threshold for AfBA requirements. As long as proper disclosure is provided and no additional fees are charged for the referral, the arrangement is permissible.
Why This Is the Correct Answer
Under RESPA, a spouse's ownership interest creates an affiliated business arrangement that must be disclosed. A 20% interest meets the ownership threshold for AfBA requirements. As long as proper disclosure is provided and no additional fees are charged for the referral, the arrangement is permissible.
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