RESPA Section 8 — Kickbacks & AfBAs

RESPA Section 8 bans giving or receiving ANYTHING of value for the REFERRAL of settlement-service business on federally related mortgage loans — cash, gift cards, lavish 'marketing agreements,' free rent for the loan officer's desk. Payments for services actually performed at market value are fine. AFFILIATED BUSINESS ARRANGEMENTS (broker owns a stake in the title company) are legal ONLY with written disclosure, an estimate of charges, and no requirement to use the affiliate. Agents may give consumers gifts; they may not take payola from lenders or title reps. Penalties are criminal — fines and jail, per violation.