Finance
Under RESPA, a kickback or fee-splitting arrangement between a lender and a settlement service provider is:
APermitted if disclosed to the borrower
BProhibited and subject to civil and criminal penalties✓ Correct
CAllowed between affiliated businesses only
DPermitted if the amount is under $500
Explanation
RESPA Section 8 prohibits kickbacks and fee-splitting among settlement service providers in federally related mortgage transactions, regardless of disclosure. Violations carry civil and criminal penalties.
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