Kickbacks between settlement service providers are addressed in which regulation?

The regulation that addresses kickbacks between settlement service providers is the Real Estate Settlement Procedures Act (RESPA). RESPA was enacted to ensure that consumers are provided with protection while utilizing settlement services related to their real estate transactions. One key aspect of RESPA is its prohibition of kickbacks and referral fees between settlement service providers, such as lenders, real estate agents, and title companies. This regulation is designed to eliminate unlawful practices that can increase the cost of settlement services to consumers and promote transparency in the real estate process.

Kickbacks can lead to inflated fees and can also compromise the integrity of the services provided, which is why RESPA imposes strict rules against them. By enforcing these regulations, RESPA aims to protect consumers from hidden fees and ensure that they are making informed choices regarding their real estate transactions.