Under RESPA Section 8, which of the following would be considered a prohibited kickback?
Correct Answer
A) A lender paying a real estate agent $500 for each loan referral
RESPA Section 8 prohibits giving or receiving anything of value in exchange for referrals of settlement service business. Paying $500 per referral is a clear violation as it's compensation for referrals.
Why This Is the Correct Answer
RESPA Section 8 prohibits giving or receiving anything of value in exchange for referrals of settlement service business. Paying $500 per referral is a clear violation as it's compensation for referrals.
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A creditor originates a 40-year mortgage with a 42% DTI ratio calculated using appendix Q standards. The loan has no risky features and meets all other QM requirements. What is this loan's QM status?
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