Connecticut License Law
A Connecticut broker's salesperson is also a licensed mortgage originator. The salesperson refers their real estate client to a specific mortgage lender for a fee. This arrangement is:
APermitted if the fee is small
BSubject to RESPA disclosure requirements and Connecticut license law; the arrangement may be a violation unless it meets RESPA's affiliated business arrangement requirements✓ Correct
CCompletely permitted if both licenses are active
DProhibited only if the lender is out of state
Explanation
RESPA Section 8 generally prohibits fee-splitting between settlement service providers, including real estate agents and mortgage lenders. A referral fee from a lender to an agent violates RESPA unless the parties meet the Affiliated Business Arrangement requirements with full disclosure and free choice given to consumers.
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