Final answer:
The Real Estate Settlement Procedures Act (RESPA) does not allow the receiving of unearned fees for services not actually performed. Section 8 of RESPA is particularly focused on preventing fee-splitting and kickback practices.
Step-by-step explanation:
The Real Estate Settlement Procedures Act (RESPA) prohibits the acceptance of fees or kickbacks for services that are not actually performed.
Specifically, section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business related to a federally related mortgage loan. Furthermore, it also prohibits fee-splitting and receiving unearned fees for services not actually rendered.
The purpose of this is to protect consumers from unnecessary costs and to prevent unethical practices in the real estate settlement process.
RESPA requires that consumers receive disclosures at various times in the transaction and outlaws the practice of giving or accepting kickbacks and unearned fees. This means that all fees charged in the real estate settlement process must be for actual services rendered.