Which regulation prohibits kickbacks and referral fees?

Regulation X, which implements the Real Estate Settlement Procedures Act (RESPA), is specifically designed to address issues related to settlement services in the real estate industry. One of its key provisions is the prohibition of kickbacks and referral fees in connection with the settlement services for federally related mortgage loans. This means that any payment made for the referral of business, such as a fee for referring a borrower to a particular lender or service provider, is strictly forbidden.

This regulation helps to ensure that consumers receive honest and transparent pricing for settlement services, as it reduces the chances of unnecessary costs being passed onto the borrower through inflated fees that may arise from the illegal payments made for referrals. By prohibiting such practices, Regulation X aims to promote fair competition and protect consumers during the mortgage process.

The other options pertain to different areas of consumer protection and do not specifically address kickbacks or referral fees as a primary focus.