Finance
Under RESPA Section 8, a Mississippi real estate licensee may NOT accept a 'thing of value' for referring clients to a title company unless:
AThe referral fee is disclosed to the buyer
BThe licensee has an ownership interest in the title company and provides proper AfBA disclosure with freedom to choose✓ Correct
CThe title company is the lowest cost provider
DMREC approves the referral arrangement
Explanation
RESPA Section 8 prohibits kickbacks for referrals of settlement business. An exception exists for affiliated business arrangements (AfBA) if the licensee has an ownership interest, proper disclosure is given, and consumers are not required to use the affiliate.
Related Mississippi Finance Questions
- The primary market in real estate finance is where:
- Under a Mississippi deed of trust, if the borrower defaults, the lender can foreclose through:
- A conventional loan is best described as a mortgage that:
- Which federal law requires lenders to give borrowers a Loan Estimate within 3 business days of a loan application?
- Under the Truth in Lending Act (TILA), a residential mortgage borrower in Mississippi has a right to rescind (cancel) the loan transaction within how many business days after closing?
- An FHA loan differs from a conventional loan primarily because:
- A Mississippi borrower applies for a 'jumbo' mortgage. Jumbo loans differ from conforming loans in that they:
- Mississippi participates in the HUD-administered HOME Investment Partnerships Program. This program provides funding to:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →