real estate finance

comment and reply on the two sources.
1. Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan.

RESPA also prohibits fee splitting by parties unless services are actually performed in order not to allow paying referral fees by simply splitting those fees.
Talking about conditions, RESPA limits the amount that a creditor may require the borrower to pay as an initial deposit into the escrow account. The maximum that a lender may require from the borrower as an escrow deposit is one-sixth of the annual amount to be paid on the borrower’s behalf. Moreover, a seller may not require that a buyer use a specific title insurance company as a condition of sale.

2. This would happen to fall under Section 8 of RESPA. The fees and conditions that Section 8 deems prohibited are as followed. Which are things of value or future value, or “kickbacks.” Which are deemed money,  discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings. RESPA also includes agreements or understandings that are not written or verbalized, in other words preferences or things of value repeatedly given to certain party. I should also include that the act also covers business referals for future business in connection with the real estate settlement.RESPA also determines a limit on a deposit requirements and escrow amounts. However there is a fine line that distinguishes a potential violation from a gift from the service.