Federal Mortgage LawsQuestion 74 of 400
For an Affiliated Business Arrangement to fall within RESPA's exception to the anti-kickback rule, the person making the referral must generally do all of the following EXCEPT:
a.Guarantee the affiliate will offer the lowest price
b.Disclose the affiliate relationship to the consumer
c.Not require the consumer to use the affiliated provider
d.Limit the return received to a return on ownership interest
Explanation
The Affiliated Business Arrangement exception requires written disclosure of the relationship, that the consumer not be required to use the affiliate (with narrow exceptions), and that the only thing of value received be a return on the ownership interest. There is no requirement to guarantee the lowest price, and promising that would not satisfy the exception.
Law Reference: Real Estate Settlement Procedures Act (RESPA Section 8)Practice all 400 questions free — no signup required.
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