Escrow & Title
Under RESPA, a settlement service provider may NOT:
ACharge a reasonable fee for title insurance
BPay or receive a kickback for referring settlement service business✓ Correct
CCharge for an appraisal of the property
DRequire borrowers to use a specific title company in all circumstances
Explanation
RESPA Section 8 prohibits any person from giving or receiving a kickback, fee, or anything of value in exchange for referrals of settlement service business for federally related mortgage loans. This prevents inflated costs to consumers.
Related Arkansas Escrow & Title Questions
- Which type of foreclosure does NOT require court proceedings in most cases?
- In an escrow closing, the escrow agent's primary duty is to:
- A lis pendens is:
- Constructive notice means:
- A quitclaim deed transfers:
- Arkansas property taxes are paid in arrears. At closing on July 1, how should the current year's property taxes be prorated?
- Cloud on title refers to:
- Which of the following BEST describes a 'cloud on title'?
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