Finance
A Kansas homebuilder offers 'builder incentives' including rate buydowns paid to the buyer's lender. Under RESPA, this must be:
AProhibited as an illegal kickback
BProperly disclosed on the Closing Disclosure as a seller credit or concession✓ Correct
CKept private between builder and buyer's lender
DApproved by KREC before being offered
Explanation
Builder incentives including rate buydowns or contributions to closing costs must be properly disclosed on the Closing Disclosure as seller credits and considered in the loan's LTV and qualifying calculations.
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