Michael Reaburn sells homeowners' insurance policies. His father is a developer. His father refers all home buyers in his subdivisions to Michael for insurance. Michael then pays his father a commission which he includes as a cost for the escrow company to collect from the buyers at closing.
A)There is no violation of RESPA.
B)Because the fees involve insurance and not mortgage fees, RESPA does not apply.
C)RESPA applies only to escrow agents and mortgage brokers and lenders.
D)The commission and referral set-up is a violation of RESPA.
Question 2
In a mineral interest:
A) The owner owns both surface and subsurface rights.
B) The same interest as a profit a prendre is conveyed.
C) The surface and subsurface rights are severed.
D) A mineral royalty is also created.
E)None of the above
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