Finance
Under RESPA, a Minnesota lender is prohibited from:
ARequiring title insurance for a purchase loan
BPaying kickbacks or unearned referral fees to other settlement service providers✓ Correct
CCharging origination fees to borrowers
DRequiring escrow accounts for taxes and insurance
Explanation
RESPA (Real Estate Settlement Procedures Act) prohibits kickbacks and unearned referral fees between settlement service providers (lenders, title companies, real estate agents). Any fee paid must be for services actually rendered. RESPA violations can result in criminal and civil penalties.
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