Finance
RESPA (Real Estate Settlement Procedures Act) prohibits which of the following in Pennsylvania mortgage transactions?
ACharging origination fees
BKickbacks and unearned fees between settlement service providers✓ Correct
CRequiring escrow accounts for taxes and insurance
DIssuing Loan Estimates within 3 days
Explanation
RESPA prohibits kickbacks, referral fees, and unearned fee splits between settlement service providers (lenders, title companies, appraisers, brokers). These arrangements inflate closing costs without providing additional services to consumers.
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