An Ohio broker receives a referral fee from a mortgage company for recommending their services to clients. Under RESPA and Ohio law, this practice is:
Correct Answer
B) Prohibited because RESPA prohibits kickbacks and referral fees between settlement service providers unless specific exceptions apply
RESPA (Real Estate Settlement Procedures Act) Section 8 prohibits kickbacks and unearned referral fees between settlement service providers. A broker receiving a fee simply for referring clients to a mortgage company violates RESPA, regardless of disclosure. Ohio law also prohibits such arrangements.
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