A lender rents desk space in a real estate office for $2,400 a month. Comparable space in the building lets for about $600 a month, and the office refers roughly 12 loans a month to the lender. If the above-market portion is paid in exchange for those referrals, does the rent arrangement comply with RESPA Section 8?
Correct Answer
A) Prohibited: the $1,800 above market value is payment for the 12 referrals
A. The stipulated referral payment is prohibited. $2,400 − $600 = $1,800 above the stated comparable rent. The stem expressly ties that excess to referrals. Scope and exceptions: High rent alone is not proof; this stem supplies the referral agreement. Assume a covered mortgage. Source: 1024.14(b), (g)(1)(iv), (g)(2) — https://www.consumerfinance.gov/rules-policy/regulations/1024/14/
Why This Is the Correct Answer
A. The stipulated referral payment is prohibited. $2,400 − $600 = $1,800 above the stated comparable rent. The stem expressly ties that excess to referrals. Scope and exceptions: High rent alone is not proof; this stem supplies the referral agreement. Assume a covered mortgage.
Why the Other Options Are Wrong
Option B: Permitted, provided the lease is in writing and signed by both parties
Signatures do not legalize the exchange.
Option C: Permitted: a lease is a lease, and rent is not a settlement service fee
The lease label is not controlling.
Option D: Prohibited only if the lender occupies the desk fewer than 20 days a month
No 20-day test applies.
Exam Tip
Examine what payment buys.
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