Under RESPA Section 8, which statement about referral fees is correct?
Correct Answer
C) Referral fees for settlement services are generally prohibited
RESPA Section 8(a) generally prohibits giving or receiving referral fees for settlement service business. The prohibition is broad and doesn't include exceptions for small amounts, licensed professionals, or disclosure.
Why This Is the Correct Answer
RESPA Section 8(a) generally prohibits giving or receiving referral fees for settlement service business. The prohibition is broad and doesn't include exceptions for small amounts, licensed professionals, or disclosure.
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Previous Question
A mortgage company's loan officer refers borrowers to a specific real estate attorney and receives a $50 'marketing fee' for each referral. The attorney argues this is payment for advertising services, not referrals. Under RESPA Section 8, this arrangement is:
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