Final answer:
It is true that you cannot give or receive referral fees from mortgage brokers, title reps, or any other settlement service providers due to regulations by the Real Estate Settlement Procedures Act (RESPA).
Step-by-step explanation:
According to the Real Estate Settlement Procedures Act (RESPA), it is indeed true that you may not give or receive referral fees or finder fees from/to mortgage brokers, title reps, or any other settlement service provider. RESPA was established to help protect consumers by prohibiting certain practices that could increase the costs of buying a home.
For example, say a real estate agent refers a client to a mortgage broker and then receives a payment for this referral. This practice would be considered illegal under RESPA. It's designed to minimize unnecessary costs and prevent practices that could create conflicts of interest or lead to uncompetitive practices in the home buying process.