Escrow & Title
What does 'RESPA's Section 8' prohibit and why does it matter in Hawaii real estate?
AA. It prohibits discriminatory lending based on the Section 8 housing voucher program
BB. It prohibits giving or accepting kickbacks, referral fees, or unearned fees in connection with federally related mortgage transactions✓ Correct
CC. It requires escrow companies to charge uniform fees in Hawaii
DD. It sets maximum allowable closing costs for FHA loans
Explanation
RESPA Section 8 prohibits kickbacks and referral fees in settlement service transactions. No person may pay or receive a fee or thing of value in exchange for referrals of settlement service business (title insurance, escrow, appraisal, mortgage services). Hawaii agents cannot receive kickbacks from title companies, inspectors, or lenders for referrals.
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