A mortgage broker refers clients to a title company providing them with an Affiliated Business Disclosure. The mortgage broker owns 10% of the title company. The title company performs services and pays the mortgage broker a commission. The title company pays the mortgage broker annual dividends based on the amount of business that was referred to the title company. Which of the statements is Correct?
A. Only the mortgage company is in violation of RESPA
B. Only the title company is in violation of RESPA
C. Both are in violation of RESPA
D. Neither are in violation of RESPA
