A brokerage owner also owns part of a title company and wants to structure referrals legally. Which payment or practice is NOT prohibited by RESPA Section 8?
Correct Answer
D) Receiving a bona fide ownership return after giving the consumer an affiliated business disclosure and not requiring use of the affiliate
RESPA allows certain affiliated business arrangements if the required written disclosure is given, the consumer is not required to use the affiliate, and the only thing of value received is a bona fide return on ownership interest. That is why a properly structured ownership return can be lawful while referral payments are not.
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