Escrow & Title

In South Dakota, 'RESPA Section 8' specifically prohibits which of the following?

ACharging more than 10% of the loan amount in total closing costs
BKickbacks and referral fees between settlement service providers for referrals✓ Correct
CSeller-paid closing costs exceeding 6% of the loan amount
DLender fees for applications that are not approved

Explanation

RESPA Section 8 prohibits giving or accepting anything of value (kickbacks, referral fees, unearned fees) in connection with federally related mortgage loans to inflate settlement service costs.

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