EthicsQuestion 344 of 400
A permissible way for a mortgage broker and a real estate agent to share the cost of a jointly produced advertisement is:
a.The agent pays nothing but receives referral credit
b.The broker pays the agent's entire marketing budget
c.Each party pays its fair share based on its actual proportion of the ad
d.The broker pays per closed referral disguised as advertising
Explanation
Under RESPA, co-marketing is permissible only if each party pays a share proportionate to its actual benefit or space in the advertisement. Free advertising given in exchange for referrals, paying another's full budget, or disguised per-referral payments are prohibited kickbacks.
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