PSI Oklahoma Real Estate Practice Test

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Prepare for the Oklahoma Real Estate Exam with our quiz. Test your knowledge with flashcards and multiple-choice questions, each providing hints and detailed explanations. Ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does the Real Estate Settlements and Procedures Act prohibit?

A lender from charging interest on loans
A lender from paying a fee to a broker for referrals
Lenders from requiring escrow accounts
Brokers from disclosing loan terms

The correct answer is: A lender from paying a fee to a broker for referrals

The Real Estate Settlements and Procedures Act (RESPA) was enacted to ensure that consumers receive information about the costs of their settlements and to eliminate abusive practices in the real estate settlement process. One of the primary provisions of RESPA is the prohibition of kickbacks and referral fees in real estate transactions. This means that a lender cannot pay a fee or other compensation to a broker for referring clients to them. This regulation is in place to promote transparency and to protect consumers from potential conflicts of interest that can arise when brokers or lenders are incentivized to recommend services based on financial gain rather than the best interests of the client. By prohibiting these referral payments, RESPA aims to ensure that consumers can make informed decisions without undue influence or pressure from parties who may benefit financially from those decisions. Understanding this aspect of RESPA is crucial for real estate professionals, as it reinforces the importance of ethical practices in the industry. Consequently, any other options presented do not align with the specific prohibitions established by RESPA.