In an affiliated business arrangement, which practice is specifically prohibited under RESPA?
Correct Answer
A) Requiring use of the affiliated business
RESPA Section 8 prohibits requiring a borrower to use an affiliated business as a condition of the loan, ensuring borrowers have freedom of choice.
Why This Is the Correct Answer
RESPA Section 8 prohibits requiring a borrower to use an affiliated business as a condition of the loan, ensuring borrowers have freedom of choice.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam