Escrow & Title

The 'RESPA' (Real Estate Settlement Procedures Act) prohibition on kickbacks applies to:

ACommission splits between cooperating brokers
BFees or payments made as inducements for referring settlement service business (title, escrow, lending) where no actual service is rendered in exchange for the fee✓ Correct
CAll payments between real estate professionals
DOnly transactions involving FHA or VA financing

Explanation

RESPA Section 8 prohibits kickbacks and unearned fees in connection with federally related mortgage transactions. For example, a real estate agent cannot receive payments from a title company simply for steering clients to that company. Fees must be for actual services rendered. This applies to most residential mortgage transactions.

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