Finance
Under RESPA (Real Estate Settlement Procedures Act), a 'kickback' arrangement between a New York lender and a title company is:
APermitted if disclosed to the buyer
BProhibited unless the parties have an affiliated business arrangement (AfBA) that is properly disclosed✓ Correct
COnly prohibited in FHA transactions
DAllowed if the kickback is less than $100
Explanation
RESPA Section 8 prohibits kickbacks and unearned fees in settlement services. Affiliated business arrangements (AfBAs) are permissible if they are properly disclosed, the consumer is free to choose alternative providers, and no unearned referral fees are paid.
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