Escrow & Title
In Louisiana, RESPA prohibits all of the following EXCEPT:
AKickbacks between settlement service providers
BAffiliated business arrangements that are disclosed in advance✓ Correct
CSplitting unearned fees
DRequiring buyers to use a specific title company as a condition of financing
Explanation
RESPA allows affiliated business arrangements (AfBA) between settlement service providers (e.g., broker-owned title company) if the relationship is disclosed and the consumer is not required to use the affiliated service.
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