A New Hampshire buyer is purchasing a home using a federally related mortgage loan. Under RESPA, which practice by the settlement service provider would be prohibited?
Correct Answer
B) Accepting a kickback or fee-split from a title company for referring the buyer's business
RESPA applies to NH residential transactions involving federally related mortgage loans. It prohibits kickbacks and unearned fee-splits between settlement service providers. NH licensees must be aware that accepting or paying referral fees to title companies, lenders, or other settlement service providers in exchange for business referrals violates RESPA and can result in both federal penalties and NH Real Estate Commission disciplinary action.
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Related Topics & Key Terms
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License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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