Finance
In Kentucky, a lender who requires a borrower to purchase credit life insurance as a condition of the loan is violating:
AThe Kentucky Consumer Protection Act
BRESPA's prohibition on kickbacks✓ Correct
CTILA's anti-coercion provisions
DHMDA reporting requirements
Explanation
RESPA prohibits lenders from requiring borrowers to purchase specific insurance products as a condition of the loan. This is considered an illegal kickback arrangement that inflates closing costs.
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