A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
Correct Answer
D) Reject referral compensation that is not payment for actual services
Why this is correct: RESPA’s anti-kickback rule prohibits giving or accepting a thing of value for referral of settlement-service business. A payment must be for actual, necessary services at reasonable value—not a disguised referral fee. Why the other choices are wrong: An appraisal note is irrelevant, compliance cannot wait for a regulator, and oral agreement does not make a referral payment lawful. Exam tip: Ask what real service was performed and whether the payment reflects its reasonable value.
Why This Is the Correct Answer
The correct response is "Apply the escrow-account rule before changing charges" because RESPA prohibits kickbacks and regulates escrow, servicing, and settlement-service practices.
Why the Other Options Are Wrong
Option A: Treat the RESPA Referral Fees review as complete because the file contains a related appraisal review note.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option B: Wait until a regulator asks for the file before applying the federal requirement.
Wait until a regulator asks for the file before applying the federal requirement. is not correct because it does not apply the rule tested by this file scenario.
Option C: Rely on oral agreement when the rule requires documented compliance.
Rely on oral agreement when the rule requires documented compliance. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
RESPA and Regulation X: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to RESPA and Regulation X; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Federal Laws Questions
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