A title company provides a mortgage lender with a computer terminal and software for processing title orders at no charge. In return, the lender refers borrowers to this title company. This arrangement:
Correct Answer
B) Violates RESPA Section 8 as an illegal kickback scheme
This arrangement violates RESPA Section 8 as it constitutes a thing of value (computer equipment and software) given in exchange for referrals of settlement service business. The fact that it appears to be 'free' does not exempt it from RESPA's anti-kickback provisions.
Why This Is the Correct Answer
This arrangement violates RESPA Section 8 as it constitutes a thing of value (computer equipment and software) given in exchange for referrals of settlement service business. The fact that it appears to be 'free' does not exempt it from RESPA's anti-kickback provisions.
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