Escrow & TitleIntermediateArizona Exam

RESPA's kickback prohibition (Section 8) in Arizona prevents:

AAll referral fee arrangements between real estate agents and affiliated businesses, including services actually performed and separately invoiced to the client
BGiving or accepting fees, kickbacks, or unearned referral fees in connection with federally related mortgage transactionsCorrect
CTitle companies from setting their own premium rates, requiring all Arizona title insurance rates to be filed with the Arizona Department of Insurance
DReal estate agents from receiving any compensation from a transaction other than the commission amount disclosed on the settlement statement

Why Giving or accepting fees, kickbacks, or unearned referral fees in connection with federally related mortgage transactions Is Correct

Answer B: Giving or accepting fees, kickbacks, or unearned referral fees in connection with federally related mortgage transactions

RESPA Section 8 prohibits giving or accepting kickbacks, referral fees, or unearned compensation in connection with federally related mortgage transactions. It does not prohibit all referral arrangements, only those where no service is performed.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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