Finance

Under RESPA, which payment is prohibited?

ACommission paid to a listing broker
BKickback paid to a referring party for a settlement service referral✓ Correct
COrigination fee charged by the lender
DTitle insurance premium paid at closing

Explanation

RESPA (the Real Estate Settlement Procedures Act) prohibits kickbacks and unearned fee-splitting between settlement service providers, such as paying a referral fee for steering borrowers to a title company.

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