A title company gives a loan originator a $200 gift card each time the originator refers a borrower for title insurance. Under RESPA, this arrangement is:

A title company gives a loan originator a

Multiple choice — select the best answer

AA prohibited kickback for the referral of settlement-service business
BPermitted because the payment is under $500
CPermitted as long as it is disclosed on the Closing Disclosure
DPermitted because title insurance is optional

✓ Correct answer: A. A prohibited kickback for the referral of settlement-service business RESPA Section 8 bans giving or accepting any thing of value pursuant to an agreement to refer settlement-service business. There is no de-minimis dollar exception and disclosure does not cure an illegal kickback.

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Topic: Federal Mortgage Law

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A title company gives a loan originator a $200 gift card each time the originator refers a borrower for title insurance. Under RESPA, this arrangement is:

Related questions — Federal Mortgage Law

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