A title insurance company offers to pay for a mortgage broker's continuing education courses in exchange for referrals. This arrangement:
Correct Answer
B) Violates RESPA as it provides value in exchange for referrals
Under RESPA Section 8, paying for continuing education courses in exchange for referrals constitutes providing something of value for referrals, which is prohibited. The educational nature doesn't exempt it from the kickback prohibition.
Why This Is the Correct Answer
Under RESPA Section 8, paying for continuing education courses in exchange for referrals constitutes providing something of value for referrals, which is prohibited. The educational nature doesn't exempt it from the kickback prohibition.
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A mortgage broker's radio ad states 'Get approved today! Finance charges starting at just $45,000 over the life of your loan.' What TILA disclosure is triggered by this statement?