In a document-cure review, a risk reviewer sees facts tied to RESPA Affiliated Business Arrangements. What should the file reflect?
Correct Answer
D) Do not accept value for third-party referrals
Why this is correct: RESPA RESPA's anti-kickback rule prohibits giving or accepting any fee, kickback, or thing of value for the referral of settlement service business. The correct choice, "Do not accept value for third-party referrals," is a direct application of this anti-kickback rule. It is a core, non-negotiable compliance requirement to prevent conflicts of interest and ensure borrowers are not steered to providers for the originator's financial gain. Why the other choices are wrong: "Change the provider list after the borrower chooses a service to avoid tolerance review" is wrong because it manipulates the required written list of providers to circumvent the good faith estimate and tolerance rules, which is deceptive and non-compliant. "Collect a fee from the provider for sending the borrower to that service" is wrong because this is a classic illegal referral fee prohibited by RESPA, regardless of how it is labeled. "Tell the borrower shopping is allowed while making the affiliate provider mandatory" is wrong because this is misleading and violates the affiliated business arrangement disclosure rules, which require clear disclosure of the relationship and affirm the borrower's right to shop. Exam tip: The RESPA anti-kickback rule is absolute. No value can be received for a referral, period.
Why This Is the Correct Answer
The correct response is "Do not accept value for third-party referrals" because Third-party settlement services must avoid referral fees and follow provider-list/tolerance rules.
Why the Other Options Are Wrong
Option A: Change the provider list after the borrower chooses a service to avoid tolerance review.
This choice is not the best answer because it applies the wrong file step for third-party settlement-service controls; the governing rule is tested by the correct option.
Option B: Collect a fee from the provider for sending the borrower to that service.
This choice is not the best answer because it applies the wrong file step for third-party settlement-service controls; the governing rule is tested by the correct option.
Option C: Tell the borrower shopping is allowed while making the affiliate provider mandatory.
This choice is not the best answer because it applies the wrong file step for third-party settlement-service controls; the governing rule is tested by the correct option.
Memory Technique
third-party settlement-service controls: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For third-party settlement-service controls questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
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
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