A processor sees a fee split tied to a settlement-service provider with no work performed. Which answer fits RESPA?
Correct Answer
B) Pay only for actual services performed
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. A core principle is that payments must be for actual, necessary services performed, and the value must not exceed the reasonable value of those services. A "fee split" tied to a provider with no work performed is a classic example of an illegal kickback disguised as a payment. The correct action is to pay only for actual services performed, ensuring compliance with RESPA's anti-kickback rules. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because internal company policies cannot override or create exceptions to federal law. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because compliance is mandatory at the time of the transaction, not upon regulatory inquiry. "Use the high-cost loan standard to decide the RESPA Kickbacks and Referrals issue before confirming the trigger facts" is wrong because RESPA's kickback prohibition applies broadly to all covered transactions, not just high-cost loans, and using the wrong legal standard is a compliance failure. Exam tip: For RESPA, remember the core rule: No payment for a referral. Payment must always be for bona fide services actually rendered.
Why This Is the Correct Answer
The correct response is "Pay only for actual services performed" because RESPA prohibits kickbacks and regulates escrow, servicing, and settlement-service practices.
Why the Other Options Are Wrong
Option A: Use an internal exception instead of the required federal disclosure or timing rule.
Use an internal exception instead of the required federal disclosure or timing rule. is not correct because it does not apply the rule tested by this file scenario.
Option C: 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 D: Use the high-cost loan standard to decide the RESPA Kickbacks and Referrals issue before confirming the trigger facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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
A mortgage file is paused during a lock-desk handoff because of FCRA Adverse Action Notices. Which answer should identify which rule controls the file?
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
Before the team acts on a production meeting, the MLO must address FCRA Adverse Action Notice. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A mortgage team asks a quality-control reviewer about TRID Loan Estimate timing during a record-retention audit. Which answer should guide the file?
A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?
A mortgage file is paused during a risk-control review because of TILA QM DTI Calculation. Which answer should choose the most defensible file action?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A mortgage team asks a licensing coordinator about TILA right of rescission during a disciplinary-risk review. Which answer should guide the file?
Next Question
In a closing-readiness check, a disclosure specialist sees facts tied to TILA HPML Escrow Requirements. What should the file reflect?