During a post-application update, a quality-control reviewer encounters an RESPA Section 8 Kickbacks issue. Which response should confirm the rule-based response?

Correct Answer

A) Handle the servicing request under Regulation X timing

Why this is correct: The Real Estate Settlement Procedures Act (RESPA) is implemented by Regulation X. Section 8 of RESPA broadly prohibits kickbacks and unearned fees for referrals of settlement service business. Regulation X also contains detailed rules regarding mortgage servicing, including procedures and timelines for handling borrower inquiries and requests. The correct answer, "Handle the servicing request under Regulation X timing," appropriately focuses on applying the specific, rule-based timing requirements for servicing actions, which is a core component of RESPA/Reg X compliance. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because internal policies cannot override RESPA's legal requirements. "Delay the RESPA Section 8 Kickbacks step until a later asset documentation review instead of acting now" is incorrect because kickback prohibitions are absolute and immediate; compliance cannot be postponed. "Rely on oral agreement when the rule requires documented compliance" is non-compliant, as servicing communications often require written documentation. Exam tip: RESPA has two main parts: Section 8 (anti-kickback) and Regulation X (servicing and settlement procedures). Match the issue in the stem to the correct part of the law.