RESPA Section 8 Kickback Prohibition
RESPA Section 8 (12 U.S.C. Section 2607) comprehensively prohibits kickbacks and unearned fees in real estate settlement services. The prohibition covers virtually every professional involved in a Florida real estate closing.
Three Parts
- Section 8(a): Prohibits giving/receiving value for referrals
- Section 8(b): Prohibits fees for services not performed
- Section 8(c): Safe harbors (salary, cooperative brokerage, affiliated business)
Covered Settlement Services
- Mortgage origination, processing, underwriting
- Title searches, examination, insurance
- Appraisals, inspections, surveys
- Escrow, closing, notary, attorney services
- All services in connection with a real estate closing
CFPB Enforcement in Florida
- Marketing services agreements scrutinized
- Below-market title company services targeted
- Sham affiliated business arrangements
- Penalties: substantial monetary settlements
- Injunctive relief and compliance monitoring
Related Terms
Barnes Walker RESPA Compliance
Barnes Walker’s attorneys ensure RESPA Section 8 compliance for Florida real estate professionals and settlement service providers. Request a legal inquiry for assistance.
Florida Law Reference
12 U.S.C. § 2601 et seq. (RESPA); Fla. Stat. § 627.7711
Real estate closings in Florida are governed by federal RESPA requirements and state title insurance regulations. Florida is a "title state" where closings are typically handled by title companies or attorneys.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC