Finance

Under RESPA, a settlement service provider who pays a kickback to a real estate agent for referring clients is:

APermitted if disclosed on the Loan Estimate
BProhibited — RESPA Section 8 bans kickbacks and fee-splitting in federally related mortgage transactions✓ Correct
CPermitted if the amount is below $50
DPermitted in commercial transactions only

Explanation

RESPA Section 8 strictly prohibits giving or accepting any fee, kickback, or thing of value for referring business related to a federally related mortgage transaction. Violations carry criminal and civil penalties.

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