EthicsQuestion 354 of 400
A builder offers a mortgage broker free office space inside its sales center in exchange for the broker steering all buyers to that broker. Under RESPA, this arrangement is:
a.A prohibited thing of value exchanged for referrals
b.Permitted because office space is not cash
c.Permitted if buyers can technically choose another lender
d.Required to speed up closings
Explanation
Free office space given in exchange for steering referrals is a 'thing of value' for referrals and violates RESPA Section 8. The non-cash nature does not exempt it, a theoretical ability to choose does not cure a steering-for-value scheme, and nothing requires such an arrangement.
Law Reference: RESPA Section 8 / ethicsPractice all 400 questions free — no signup required.
Related questions on this topic
- An advertisement using imagery and language that signals a lender only welcomes applicants of a particular race or religion may violate fair-lending law because it:
- Which practice would MOST clearly be considered predatory rather than merely aggressive?
- Under ECOA, a lender evaluating an applicant's age may:
- Which fact pattern is LEAST likely to indicate occupancy fraud?
- A lender may lawfully consider which of the following when deciding whether to extend mortgage credit?
- A borrower asks a loan officer to 'leave off' an existing car loan from the application so the debt-to-income ratio looks better. The officer should:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review