hard · National Real Estate Exam

Which statement most precisely captures why this arrangement violates RESPA Section 8 even though a written agreement and an invoice exist?

1. It violates Section 8 because any payment between a lender and a real-estate brokerage is a per se kickback, since the two are settlement-service providers in the same transaction.
2. It is permissible under the Section 8(c)(2) safe harbor because a bona fide written agreement and an invoice were executed, which conclusively documents that the payment is for services rendered.
3. It violates Section 8 because the payment is consideration for the referral of settlement-service business rather than reasonable compensation for goods or services actually furnished, and the (c)(2) safe harbor protects only payments commensurate with services of real value.
4. It is permissible because RESPA Section 8 governs only the borrower's side; payments flowing to the buyer's agent, who is not a 'settlement service provider' to the lender, fall outside the statute.

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