Escrow & Title

Under RESPA, which of the following is prohibited?

AA lender collecting an application fee
BA broker receiving a referral fee from a title company for sending business✓ Correct
CAn attorney charging for title examination services
DA lender requiring an appraisal

Explanation

RESPA (Real Estate Settlement Procedures Act) prohibits kickbacks and unearned fees — including referral fees between settlement service providers, such as a broker receiving payment from a title company solely for referring business.

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