A Kentucky agent receives a gift from a vendor for recommending their home inspection services. This is:
Correct Answer
B) Potentially a RESPA violation if the referral is for a federally related mortgage loan settlement service and the payment is for the referral itself
RESPA (Real Estate Settlement Procedures Act) Section 8 prohibits kickbacks and referral fees for settlement services in federally related mortgage transactions. Gifts for referrals can violate RESPA and result in fines and criminal penalties.
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