Finance
Under RESPA, a lender in West Virginia may NOT require the borrower to use a specific title company UNLESS:
AThe lender has a financial interest in the title company and discloses it✓ Correct
BThe lender simply prefers that title company's service
CThe title company offers the lowest rates in the market
DThe lender is a bank regulated by the Federal Reserve
Explanation
RESPA generally prohibits lenders from requiring borrowers to use a specific settlement service provider. However, under RESPA Section 9, lenders who have an affiliated business arrangement (ownership interest) may require use of an affiliated service if they properly disclose the arrangement on the Affiliated Business Arrangement Disclosure Statement.
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