FinancingEASY
Under RESPA, kickbacks or referral fees between settlement service providers are:
Correct Answer
C) Prohibited
Section 8 of RESPA strictly prohibits kickbacks and referral fees between settlement service providers. Violations can result in fines up to $10,000 and/or up to one year imprisonment. The prohibition applies regardless of disclosure.
Answer Options
A
Legal if disclosed to the borrowerB
Legal up to 1% of the loan amountC
ProhibitedD
Legal if split equally between partiesVideo Explanation3 min
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Related Topics & Key Terms
Related Topics:
real-estate-settlement-procedures-actconsumer-protection-lawsreal-estate-ethicssettlement-service-provider-requirements
Key Terms:
RESPA Section 8kickbacksreferral feessettlement service providersCFPB enforcement
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