Escrow & Title
RESPA prohibits which practice in Wyoming real estate closings?
ACharging origination fees
BKickbacks and unearned fees between settlement service providers✓ Correct
CRequiring title insurance
DCharging escrow fees
Explanation
RESPA prohibits kickbacks, referral fees, and unearned fees between settlement service providers (lenders, title companies, real estate agents). Legitimate fees for services actually rendered are permissible, but payments for referrals with no service provided are illegal.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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