Finance
Under RESPA, a lender may NOT require a borrower to use a specific title company as a condition of obtaining a loan in Oregon unless:
AThe title company is owned by the lender
BThe lender is providing a title insurance credit or rate reduction as part of the loan package
CThe borrower has previously had title issues
DRESPA prohibits this in all circumstances✓ Correct
Explanation
RESPA Section 9 prohibits sellers (and by extension lenders as a condition of financing) from requiring buyers to use a specific title insurance company. This protects consumers' right to shop for title services. Violations can result in the seller paying penalties to the buyer. In Oregon, buyers have the right to choose their own title/escrow company.
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