Which of the following best describes an 'unearned fee' under RESPA Section 8?
Correct Answer
B) A fee charged for services that were not actually performed
RESPA Section 8(b) prohibits unearned fees, which are charges for services that were not actually performed. The fee must correspond to actual services rendered to be permissible under RESPA.
Why This Is the Correct Answer
RESPA Section 8(b) prohibits unearned fees, which are charges for services that were not actually performed. The fee must correspond to actual services rendered to be permissible under RESPA.
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A lender refuses to make loans on properties in a specific census tract, claiming that property values there are 'too volatile for our portfolio.' Investigation reveals this tract is 85% Hispanic. The lender's defense that the decision was based on property values rather than race:
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A mortgage broker's newspaper ad states '$200,000 loan amount available.' Which TILA requirement applies?