Which section of RESPA addresses kickbacks and excessive fees?

The correct answer is Section 8 of the Real Estate Settlement Procedures Act (RESPA). This section specifically addresses the prohibition of kickbacks and referral fees that can increase the cost of settlement services for consumers. Section 8 aims to ensure that consumers are not charged unnecessarily high costs due to the payment of unearned fees when they are obtaining residential mortgage loans.

Under this section, any payments made for services that have not been performed are not allowed. It prohibits giving or receiving any fees or things of value in exchange for referrals for settlement services, encouraging transparency and fairness in real estate transactions. This protection helps maintain a level playing field for all service providers and safeguards consumers against inflated costs that can arise from such unethical practices.

The other sections mentioned focus on different aspects of real estate transactions. For instance, Section 7 deals with the requirement of providing a good faith estimate of the settlement costs, Section 9 relates to the seller's right to choose the title insurance company, and Section 10 outlines the regulations regarding escrow account disclosures. Each of these sections plays a crucial role within RESPA but does not specifically target kickbacks and excessive fees as directly as Section 8 does.