Finance
Under RESPA, a lender is prohibited from:
ACharging origination fees
BPaying kickbacks or referral fees for settlement service referrals✓ Correct
CRequiring escrow accounts for taxes and insurance
DCharging discount points
Explanation
RESPA (Real Estate Settlement Procedures Act) prohibits kickbacks and unearned fee splitting among settlement service providers (lenders, title companies, real estate brokers) in federally related mortgage transactions.
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