A title company offers to provide free marketing materials to an MLO in exchange for loan referrals. This arrangement:
Correct Answer
C) Violates RESPA Section 8 anti-kickback provisions
Providing free marketing materials in exchange for referrals constitutes a thing of value given for referrals, which violates RESPA Section 8's anti-kickback provisions.
Why This Is the Correct Answer
Providing free marketing materials in exchange for referrals constitutes a thing of value given for referrals, which violates RESPA Section 8's anti-kickback provisions.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
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?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
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A borrower receives 1099-MISC income for consulting work but also has significant unreimbursed business expenses. These expenses should be:
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A borrower requests that all loan communications be sent only to their workplace address because they are in the process of divorce and don't want their spouse to see mortgage-related documents. How should the MLO handle this request?