Lending regulation
RESPA
The Real Estate Settlement Procedures Act, governing settlement services and referrals
It requires disclosure of settlement costs and prohibits kickbacks and unearned fees for referrals of settlement service business. Affiliated business arrangements are permitted but only under conditions, one of which is written disclosure of the relationship.
How the exam asks about it
There is no small-amount exception and disclosure does not cure a kickback. A title company paying an agent for referrals is a violation regardless of the sum.
Related terms
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