A title company provides an MLO with a detailed marketing analysis showing average days on market for properties in the MLO's territory. In exchange, the MLO agrees to refer at least 5 transactions per month. This arrangement is:
Correct Answer
B) Prohibited under RESPA as it involves a referral agreement with compensation
Under RESPA Section 8, this arrangement violates the prohibition on agreements for referrals. The marketing analysis constitutes a thing of value provided in exchange for a commitment to refer business, regardless of whether the data has legitimate business value.
Why This Is the Correct Answer
Under RESPA Section 8, this arrangement violates the prohibition on agreements for referrals. The marketing analysis constitutes a thing of value provided in exchange for a commitment to refer business, regardless of whether the data has legitimate business value.
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