The Real Estate Settlement Procedures Act (RESPA) is a federal law governing residential real estate transactions. RESPA requires lenders and others to provide borrowers with disclosures regarding the nature and costs of the real estate settlement process. RESPA also prohibits specific practices and regulates escrow accounts.

Section 8 of RESPA prohibits any real estate broker or agent, lender, mortgage broker, builder or developer, attorney, title company, title agent, or other person from giving or accepting any part of a charge for services that are not performed and any thing of value for referrals of settlement service business related to a federally insured mortgage loan.

Affiliated business arrangements (AfBAs) are wholly or partially-owned companies or partnerships that offer a diversified menu of settlement services to streamline the home buying process. If the conditions of the law are satisfied, affiliated business arrangements are permitted under Section 8(c)4 of RESPA.