A mortgage loan originator discovers that the title company they regularly refer clients to has been providing them with season tickets to sporting events. Under RESPA, what action should the MLO take?
Correct Answer
B) Immediately cease accepting the tickets and stop all referrals to that title company
Under RESPA Section 8, any thing of value given in exchange for referrals of settlement service business is prohibited. The MLO must immediately stop accepting the tickets and cease referrals to avoid violations of the anti-kickback provisions.
Why This Is the Correct Answer
Under RESPA Section 8, any thing of value given in exchange for referrals of settlement service business is prohibited. The MLO must immediately stop accepting the tickets and cease referrals to avoid violations of the anti-kickback provisions.
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On day 8 after providing the initial Loan Estimate, a lender discovers the property requires a specialized environmental assessment costing $1,500 that wasn't initially known. When must the revised Loan Estimate be provided?
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A borrower receives their Closing Disclosure on Tuesday and requests to close on Friday of the same week. The lender discovers a $50 increase in the title insurance fee on Thursday. What is the latest action the lender can take?