The federal law which the arrangement between the mortgage broker and the title company in renting office space through at a discount in exchange for referring customers violate RESPA.
What is RESPA?
RESPA is an abbreviation for Real Estate Settlement Procedures Act and it can be defined as a federal law which was passed by the United States Congress on the 22nd December, 1974, and codified as Title 12, Chapter 27 under the United States Code.
The main purpose of RESPA is to efficiently and effectively reduce unnecessarily high settlement costs between homebuyers and sellers, by requiring disclosures.
In this context, we can infer and logically deduce that the federal law which the arrangement between the mortgage broker and the title company in renting office space through at a discount in exchange for referring customers violate RESPA.
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