Federal Mortgage LawsQuestion 73 of 400
A title company pays a mortgage broker $200 for each borrower the broker refers, regardless of any services performed. Under RESPA, this arrangement is:
a.Permitted as a marketing expense
b.Permitted if under $500
c.Permitted if disclosed at closing
d.A prohibited kickback for referrals
Explanation
RESPA Section 8(a) prohibits giving or accepting any fee, kickback, or thing of value for the referral of settlement service business involving a federally related mortgage. Paying for referrals themselves is illegal regardless of amount or disclosure. Only payments for goods or services actually furnished at reasonable market value are permitted.
Law Reference: Real Estate Settlement Procedures Act (RESPA Section 8)Practice all 400 questions free — no signup required.
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