Finance
RESPA (Real Estate Settlement Procedures Act) prohibits in Iowa mortgage transactions:
ACharging a reasonable origination fee
BKickbacks and unearned fees paid between settlement service providers✓ Correct
CRequiring a good faith estimate
DEscrow accounts for taxes and insurance
Explanation
RESPA prohibits kickbacks, referral fees, and unearned fees paid between settlement service providers (title companies, lenders, inspectors) that have no corresponding service rendered. Such payments increase consumer costs and are illegal.
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