VERSION 1 | LAST UPDATED 10/7/2020
RESPA F AQS
and payment of another person's expenses, or reduction in credit against an existing
obligation. “Payment” is used synonymously with the giving or receiving of a “thing of value”
in Regulation X, 12 CFR §§ 1024.14 and 1024.15, and does not require the transfer of
money. 12 CFR § 1024.14(d).
Pursuant to an agreement or understanding, oral or otherwise. An agreement or
understanding need not be written or verbalized. It may be established by practice, pattern,
or course of conduct. For example, when a thing of value is received repeatedly, and
connected in any way with the volume or value of business referred, receipt of the thing of
value is evidence that it is made pursuant to an agreement or understanding. 12 CFR
§ 1024.14(e).
For referrals of business. Referrals include oral or written action directed to a person that
has the effect of affirmatively influencing a person’s selection of a provider of a settlement
service or business incident to or part of a settlement service. That effect can be on any
person in connection with the settlement service or business incident thereto who will pay
for the service or a charge attributable, in whole or in part, to that service or service provider.
12 CFR § 1024.14(f)(1). Additionally, referrals include requiring the use by the person
paying for the service of a particular provider of settlement service-related business. 12
CFR §§ 1024.14(f)(2) and 1024.2(b) (“required use”). Finally, note that prohibited referrals
are not limited to those directed to consumers. They might be directed to a number of
sources, such as appraisers, real estate agents, title companies and agents, lenders,
mortgage brokers, or companies that provide information in connection with settlements,
such as credit reports and flood determinations. 12 CFR § 1024.14(b) and (f).
Incident to or part of a real estate settlement service involving a federally related mortgage
loan. To be a violation, the referral(s) must be directly or indirectly incident to or part of a
real estate settlement service involving a federally related mortgage loan
. 12 USC
§ 2602(1); 12 CFR § 1024.2(b). Settlement service is defined broadly as any service
provided in connection with a real estate settlement, which includes (but is not limited to)
origination of a loan, closing services, title services, title insurance, document preparation,
property surveys, inspections and appraisals, the rendering of credit reports and appraisals,
and services of attorneys, real estate agents, and mortgage brokers. 12 USC § 2602(3); 12
CFR § 1024.2(b).