Mortgage Loan Originator (MLO) Licensing 2026 – 400 Free Practice Questions to Pass the Exam

Section 8 of the Real Estate Settlement Procedures Act (RESPA) primarily focuses on prohibiting the exchange of kickbacks and referral fees in relation to settlement services. It is designed to ensure that consumers are not overcharged for services and that they receive fair treatment in the mortgage process. This prohibition extends to any agreements that involve giving or receiving anything of value as compensation for referrals or other services related to a real estate transaction. By curbing these practices, the law aims to enhance transparency and protect consumers from unethical practices that could inflate costs or jeopardize their ability to make informed decisions in the home-buying process.

In contrast, the other options are not aligned with the specific focus of Section 8. Investment strategies for loans address financial planning, not the regulatory framework established by RESPA. Requirements for loan documentation pertain to the necessary paperwork and procedures lending institutions must follow, but they fall under different sections of RESPA or other regulations. Consumer education on mortgage options is essential for making informed financial decisions, yet it does not represent the primary mandate of Section 8, which centers strictly on the prohibition against kickbacks and referral fees.