Finance
RESPA (Real Estate Settlement Procedures Act) prohibits:
ACharging more than a 6% commission
BKickbacks and unearned fees in the settlement process for federally related mortgage loans✓ Correct
CLenders from requiring PMI on low-down-payment loans
DAdjustable-rate mortgages for first-time buyers
Explanation
RESPA prohibits kickbacks, fee-splitting, and unearned fees in connection with federally related mortgage loan transactions. It also requires disclosures about settlement costs.
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