Which of the following is considered a violation under RESPA?

Charging a fee for referral recommendations is considered a violation under the Real Estate Settlement Procedures Act (RESPA) because RESPA prohibits unearned fees, which include kickbacks and referral fees for services that are not performed. The statute was designed to promote transparency in the real estate settlement process and to eliminate unethical practices that can inflate the cost of obtaining a mortgage. When a mortgage loan originator or any settlement service provider charges for referrals without providing a legitimate service, it undermines the integrity of the lending process and exposes consumers to unnecessary charges. This protection encourages fair competition and protects borrowers from excessive costs due to conflicts of interest.

In contrast, providing a Good Faith Estimate, maintaining this estimate for a specific duration, and fully disclosing finance charges are all practices intended to enhance transparency and consumer awareness in real estate transactions and are compliant with RESPA requirements.