Escrow & Title
A RESPA violation in Kentucky occurs when a lender pays a kickback to a title company for referring business. This is prohibited because:
ATitle companies cannot accept any fees
BIt increases closing costs for consumers without adding value✓ Correct
CIt gives the title company an unfair advantage
DLenders cannot communicate with title companies
Explanation
RESPA prohibits kickbacks and unearned fees in the settlement process because they increase consumer costs without providing any real service or benefit to the buyer.
Related Kentucky Escrow & Title Questions
- A Kentucky buyer discovers after closing that a previous owner had a boundary dispute with a neighbor that was not disclosed. The buyer's owner's title insurance policy would cover this if:
- In a Kentucky closing, the seller's proceeds are typically disbursed:
- An abstract of title is:
- Which of the following is a voluntary lien on real property?
- At closing, proration of real estate taxes means:
- A title search examines public records to:
- Which type of title insurance policy protects the lender's interest?
- A chain of title in Kentucky refers to:
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