Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
Correct Answer
D) Do not exchange value for settlement-service referrals
Why this is correct: RESPA's anti-kickback rule is a fundamental and strict prohibition against giving or accepting any fee or thing of value for referrals of settlement service business. "Do not exchange value for settlement-service referrals" states this core rule. While the question mentions a servicing transfer notice, the most defensible compliant action among the options is to adhere to this bright-line anti-kickback prohibition, which is always required. Why the other choices are wrong: "Use prior quality-control approval as a substitute for the current RESPA Servicing Transfer Notice requirement" is wrong because servicing transfer notices are specific timed disclosures that cannot be waived. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because all RESPA requirements, including anti-kickback rules, are proactive. "Rely on oral agreement when the rule requires documented compliance" is wrong because RESPA compliance generally requires written records. Exam tip: RESPA's anti-kickback rule is a strict liability provision. No exchange of value for referrals is ever permitted, making it a strongly defensible position.
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 A: Use prior quality-control approval as a substitute for the current RESPA Servicing Transfer Notice requirement.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option B: 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 C: Rely on oral agreement when the rule requires documented compliance.
Rely on oral agreement when the rule requires documented compliance. is not correct because it does not apply the rule tested by this file scenario.
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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