The branch manager is resolving RESPA Servicing Requirements during a loan setup review. Which action best fits the rule?
Correct Answer
A) Do not exchange value for settlement-service 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. This anti-kickback rule is a core RESPA requirement to prevent inflated costs and conflicts of interest. The original explanation correctly notes RESPA limits referral value. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because RESPA's anti-kickback provision has no internal exceptions; it's a strict prohibition. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because compliance must be proactive and ongoing, not delayed until scrutiny. "Delay the RESPA Servicing Requirements step until a later HMDA reporting review instead of acting now" is wrong because RESPA servicing rules (e.g., disclosure, error resolution) are independent of HMDA and have specific timing requirements. Exam tip: RESPA's anti-referral-fee rule is absolute—never exchange anything of value for a settlement service referral.
Why This Is the Correct Answer
The correct response is "Do not exchange value for settlement-service referrals" because RESPA/Regulation X limits referral value and sets servicing disclosure and response duties.
Why the Other Options Are Wrong
Option B: 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: Delay the RESPA Servicing Requirements step until a later HMDA reporting review instead of acting now.
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 servicing and affiliated-business rules: 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 servicing and affiliated-business rules; 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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