In return for a steady flow of referrals, a lender gives an agent 4 tickets to a game worth $900, pays $1,500 toward the agent's advertising and provides free use of a conference room. Which of these benefits constitutes a thing of value under RESPA Section 8?
Correct Answer
B) All 3 count: a thing of value is not limited to cash payments alone
B. All three benefits have value. Tickets, paid advertising and free facilities need not be cash to count. The question supplies the referral exchange. Scope and exceptions: Not every promotion is prohibited; these benefits are conditioned on referrals. Source: 1024.14(b), (d), (g)(1)(vi) — https://www.consumerfinance.gov/rules-policy/regulations/1024/14/
Why This Is the Correct Answer
B. All three benefits have value. Tickets, paid advertising and free facilities need not be cash to count. The question supplies the referral exchange. Scope and exceptions: Not every promotion is prohibited; these benefits are conditioned on referrals.
Why the Other Options Are Wrong
Option A: Only the $1,500 counts, since advertising support is a direct payment
Excludes noncash benefits incorrectly.
Option C: None counts unless the total exceeds $5,000 in a calendar year
Invents a $5,000 exemption.
Option D: Only the $900 in tickets counts, as goods have an ascertainable value
Facilities and advertising also count.
Exam Tip
Noncash does not mean valueless.
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