Section 8 / General – 1. What are the provisions of RESPA Section 8?

Compliance > Regulation X - RESPA
Q:   What are the provisions of RESPA Section 8?
 
A:   RESPA Section 8 prohibits certain actions related to federally related mortgage loans.
 
RESPA Section 8(a) prohibits kickbacks for business referrals related to or part of settlement services involving federally related mortgage loans. 12 USC § 2607(a); 12 CFR § 1024.14(b).
 
RESPA Section 8(b) prohibits unearned fee arrangements, i.e., splitting charges made or received for settlement services, except for services actually performed, in connection with federally related mortgage loan transactions. 12 USC § 2607(b); 12 CFR § 1024.14(c).
 
RESPA Section 8(c) identifies certain payments that are not prohibited by Section 8. 12 USC § 2607(c); 12 CFR § 1024.14(g).
 
Appendix B to Regulation X provides examples to illustrate the application of RESPA to particular fact patterns, including fact patterns under Section 8(a), 8(b), and 8(c) indicating whether or not a violation occurred. Appendix B to 12 CFR part 1024.
 
RESPA Section 8(d) details specific penalties for violations of Section 8, including for Sections 8(a) and 8(b). 12 USC § 2607(d).
 
RESPA Sections 8(a), 8(b), and 8(c) are discussed in more detail in RESPA Section 8 General FAQs 2 through FAQ 4 and RESPA Section 8(a) FAQ 1 below.
 
 
This Q&A was based on information contained in the Consumer Financial Protection Bureau’s (CFPB) Real Estate Settlement Procedures Act FAQs that were issued in October, 2020, which may be updated from time to time.  This CFPB issuance may be found here:  https://www.consumerfinance.gov/policy-compliance/guidance/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/#respa-section-8-general
 

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