A mortgage company's loan officer refers borrowers to a specific real estate attorney and receives a $50 'marketing fee' for each referral. The attorney argues this is payment for advertising services, not referrals. Under RESPA Section 8, this arrangement is:
Correct Answer
A) Prohibited regardless of any claimed marketing services provided
Under RESPA Section 8, this arrangement is prohibited regardless of how it's characterized. When payments are made in connection with referrals of settlement service business, they violate the anti-kickback provisions even if disguised as 'marketing fees' or other services.
Why This Is the Correct Answer
Under RESPA Section 8, this arrangement is prohibited regardless of how it's characterized. When payments are made in connection with referrals of settlement service business, they violate the anti-kickback provisions even if disguised as 'marketing fees' or other services.
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A lender's HMDA data shows that 85% of white applicants are approved compared to 70% of Hispanic applicants. The lender argues this difference is due to credit score variations. What additional analysis would be most appropriate?
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Under RESPA Section 8, which statement about referral fees is correct?