Question

How are referral fees and kickbacks shown on the HUD-1?

a) Itemized under seller's expenses
b) Included in the lender's fees
c) Disclosed as credits to the buyer
d) Not displayed on the HUD-1

Answer 1

Referral fees and kickbacks are not displayed on the HUD-1 settlement statement.

Step-by-step explanation:

Referral fees and kickbacks are not displayed on the HUD-1 settlement statement. The HUD-1 is a document used in real estate transactions to itemize all of the fees and charges paid by the buyer and seller. Referral fees and kickbacks, which are typically paid to third parties for referring business, are not considered legitimate fees or charges that need to be disclosed on the HUD-1. They are separate agreements between parties involved in the transaction and would not be included on the HUD-1 form.