Finance
Under RESPA, a kickback paid by a title company to a real estate broker for referring settlement business is:
ALegal if disclosed to the buyer
BIllegal and prohibited regardless of disclosure✓ Correct
CLegal if the broker passes the savings to the buyer
DLegal only if approved by HUD
Explanation
RESPA Section 8 prohibits kickbacks and unearned fees in connection with federally related mortgage transactions. Kickbacks between settlement service providers are illegal regardless of disclosure, as they inflate costs for consumers.
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