Pennsylvania License Law
A Pennsylvania real estate licensee who also holds a mortgage originator license may receive compensation for both services in the same transaction only if:
ANo disclosure is required as long as the fees are reasonable and competitive
BProper RESPA affiliated business arrangement disclosure is made and the consumer is not required to use the affiliated service✓ Correct
CPREC grants special dual-compensation approval for that specific transaction
DThe licensee only originates mortgages for properties they personally listed
Explanation
RESPA Section 8 prohibits kickbacks and unearned fees but permits affiliated business arrangements (AfBAs) if properly disclosed. A licensee holding both a real estate license and a mortgage originator license may receive compensation for both services in the same transaction if the Affiliated Business Arrangement Disclosure Form is provided to the consumer, who must be free to use other service providers without penalty. Undisclosed dual compensation is a RESPA violation subject to federal penalties.
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