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A processor handoff raises an RESPA Settlement Services question for a closing coordinator. What answer should guide the file?

Correct Answer

C) Disclose third-party charges in the proper category

Third-party settlement services must avoid referral fees and follow provider-list/tolerance rules. The best answer is "Disclose third-party charges in the proper category".

Answer Options
A
Tell the borrower shopping is allowed while making the affiliate provider mandatory.
B
Leave provider charges undisclosed until the final Closing Disclosure.
C
Disclose third-party charges in the proper category
D
Require a preferred provider and still treat the borrower as having shopped.

Why This Is the Correct Answer

Third-party settlement services must avoid referral fees and follow provider-list/tolerance rules. The best answer is "Disclose third-party charges in the proper category".

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