Washington License Law

A Washington real estate broker receives a referral fee from a mortgage lender for sending clients to the lender. This practice is:

ALegal if disclosed to the client
BLegal with no restrictions
CA RESPA violation if not a bona fide affiliated business arrangement with proper disclosures✓ Correct
DProhibited only for licensed mortgage brokers

Explanation

RESPA Section 8 prohibits kickbacks and unearned fees between settlement service providers. A referral fee from a lender to a real estate broker violates RESPA unless structured as a compliant affiliated business arrangement with full written disclosure.

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