EthicsQuestion 317 of 400
A title company pays a mortgage broker $200 for each loan referred to it, with no service performed in return. Under RESPA Section 8, this payment is:
a.Permitted as a marketing expense
b.Permitted if under $500
c.Permitted if disclosed on the Closing Disclosure
d.A prohibited kickback for the referral of settlement service business
Explanation
RESPA Section 8 prohibits giving or accepting a fee or thing of value for referring settlement-service business when no bona fide service is performed. A referral fee is not a legitimate marketing expense, there is no dollar threshold that makes it legal, and disclosure does not cure an illegal kickback.
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