Finance
Under RESPA, a 'Affiliated Business Arrangement' (AfBA) disclosure must be provided when:
AA buyer asks about interest rates
BA settlement service provider refers a customer to a business with which they have a financial relationship✓ Correct
CA borrower requests a copy of their credit report
DClosing costs exceed 3% of the loan amount
Explanation
RESPA requires that when a settlement service provider (such as a real estate agent) refers a customer to another provider in which they have an ownership or financial interest, they must disclose this affiliation to the customer so the customer can make an informed choice.
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