Question

Which of the following is required by RESPA before a loan originator refers her customer to XYZ title company that she owns or has a financial interest in?

A. A written disclosure of the relationship.
B. A verbal disclosure of the relationship.
C. No disclosure is required.
D. The loan originator must not refer the customer to the title company.

Answer 1

The correct answer is A) A written disclosure of the relationship.

Step-by-step explanation:

The correct answer is A) A written disclosure of the relationship.

According to the Real Estate Settlement Procedures Act (RESPA), loan originators are required to provide a written disclosure of their relationship with a title company before referring their customer to that title company. This is to ensure transparency and to protect the interests of the customer.

By providing a written disclosure, the loan originator enables the customer to make an informed decision about whether to proceed with using the title company owned or financially related to the loan originator.