An MLO is reviewing procedures for a case where a title company offers a gift card for each borrower referral. What is the proper handling?
Correct Answer
A) Refuse the referral fee because no service is performed
Lines 244-249; 12 CFR 1024.14(b). A thing of value for a referral is prohibited even if the borrower charge does not increase. Therefore, the correct response is "Refuse the referral fee because no service is performed".
Why This Is the Correct Answer
Lines 244-249; 12 CFR 1024.14(b). A thing of value for a referral is prohibited even if the borrower charge does not increase. Therefore, the correct response is "Refuse the referral fee because no service is performed".
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