RESPA – private party loans

Which of the following is true with regards to RESPA:

  1.  Real estate loans from private parties are generally not exempt from RESPA
  2.  Offering a referral fee to someone who is not a licensed real estate agent is allowable under RESPA.
  3.  RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan.
  4.  Violators of RESPA can not be punished with jail time.

The answer is C.  For A – loans from private parties generally are exempt from RESPA.  For B – a referral fee to an unlicensed agent is not allowable under RESPA.  For answer D – violators of RESPA can be punished with jail time or a $10,000 fine.