Escrow & Title

Under the Real Estate Settlement Procedures Act (RESPA), a 'controlled business arrangement' (AfBA) requires all EXCEPT:

AWritten disclosure to the consumer at or before the referral
BThat the consumer is not required to use the affiliated service
CThat the compensation received is only from the direct services rendered, not from the referral
DThat the consumer signs a waiver before using any affiliated service✓ Correct

Explanation

RESPA's AfBA requirements include: written disclosure of the arrangement, disclosure of the estimated charges, and the consumer's freedom to choose other providers. However, RESPA does not require the consumer to sign a waiver — the consumer may simply choose not to use the affiliated service.

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