A CRMLA licensee pays a real estate agent $350 for each of the 22 buyers she sends it, calling the payment a marketing allowance. Assuming RESPA applies, may the lender pay this per-referral marketing allowance?
Correct Answer
C) Prohibited: a payment for referrals is a kickback whatever it is called
Paying a thing of value for the referral of settlement service business is prohibited, and a CRMLA licensee that breaches the federal rule breaches California law with it. Other choices: the label does not change what the payment buys; handing out brochures is the cover such arrangements use rather than the service being paid for; and no borrower harm has to be shown. Source: 12 USC 2607(a); Cal. Fin. Code § 50204
Why This Is the Correct Answer
Paying a thing of value for the referral of settlement service business is prohibited, and a CRMLA licensee that breaches the federal rule breaches California law with it. Other choices: the label does not change what the payment buys; handing out brochures is the cover such arrangements use rather than the service being paid for; and no borrower harm has to be shown. Source: 12 USC 2607(a); Cal. Fin. Code § 50204
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