Definition: A relationship in which a settlement-service referrer has a qualifying ownership or affiliate connection with a provider receiving the referral, as defined by RESPA.
Example
A brokerage refers a buyer to a title company in which the brokerage has an ownership interest.
Keep the distinction clear
An affiliated arrangement is not automatically prohibited, but the RESPA exemption has conditions involving disclosure, required use, and permitted returns. Disclosure alone does not cure every violation.
Related terms
Kickback · Real Estate Brokerage · Mortgage Broker
Keep studying
Real Estate and Loan Brokerage: Affiliated Businesses and Disclosure Questions
References: CFPB Regulation X: affiliated business arrangements · CFPB: RESPA referral fees and kickbacks
Pronunciation (US): uh-FIL-ee-ay-tid BIZ-nis ree-LAY-shun-ship (capitals show stress)
Pronunciation reference: Merriam-Webster
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