RESPA’s Section 8(c) exemption created three basic requirements for affiliated business arrangements (AfBAs): disclosure at the time of referral, the consumer must be aware of their right to shop around for the service, and involved parties can only receive returns based on their ownership interest as a thing of value. This explanation is similar to School of Rock’s “I’m just a Bill” – while not wrong, there is a bit more to it than just what the text says. While Section 8(c)(4) is all that is required by the statute, the agencies who have regulated RESPA through the decades also have put out their own opinions and interpretations of what an AfBA needs to do – or avoid – to stay compliant.
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