Question 13
Domain 1: Federal Mortgage-Related LawsUnder RESPA Section 8, which of the following is generally PROHIBITED?
Correct answer: A
Explanation
RESPA Section 8 bars kickbacks and referral fees in settlement services. It prohibits giving or accepting "any fee, kickback, or thing of value" for referring business, so paying a real estate agent for sending a borrower to a specific lender is generally forbidden.
Why each option is right or wrong
A. Paying a referral fee to a real estate agent for sending a borrower to a specific lender
RESPA § 8(a), codified at 12 U.S.C. § 2607(a), prohibits giving or accepting “any fee, kickback, or thing of value” pursuant to an agreement or understanding that business incident to a real estate settlement service will be referred. A payment to a real estate agent for steering a borrower to a particular lender is a classic referral fee and falls squarely within that ban; the statute’s limited exceptions in § 8(c) do not protect compensation for mere referrals.
B. Reimbursing an MLO for documented marketing expenses
C. Paying a salary to a loan officer based on hours worked
D. Charging a borrower a credit report fee that reflects the actual cost