Escrow & Title
Under RESPA, a kickback paid to a real estate agent for referring business to a title company is:
ALegal if disclosed to the consumer
BLegal as part of an affiliated business arrangement only
CIllegal and subject to criminal penalties✓ Correct
DLegal if not more than $25 in value
Explanation
RESPA Section 8 prohibits kickbacks and unearned fee splits in connection with federally related mortgage transactions. Violations can result in civil liability and criminal penalties including fines and imprisonment.
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