Finance

Under the Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited in a NH residential mortgage transaction?

ACharging origination fees
BRequiring title insurance
CPaying undisclosed kickbacks between settlement service providers✓ Correct
DCharging closing costs to the buyer

Explanation

RESPA prohibits the payment of kickbacks, fee-splitting, or referral fees between settlement service providers (lenders, title companies, real estate agents, etc.) in federally related mortgage transactions. These arrangements increase costs to consumers without providing additional services.

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