Opinion No. (1998)

DANIEL E. LUNGREN Attorney General ANTHONY Da VIGO Deputy Attorney General THE HONORABLE STEVEN T. KUYKENDALL, MEMBER OF THE CALIFORNIA ASSEMBLY, has requested an opinion on the following question: Is the Real Estate Commissioner required to take adverse action against a real estate licensee due solely to the licensee's acceptance of a fee for the referral of a client to a mortgage lender in violation of the federal Real Estate Settlement Procedures Act of 1974? CONCLUSION The Real Estate Commissioner is not required to take adverse action against a real estate licensee due solely to the licensee's acceptance of a fee for the referral of a client to a mortgage lender in violation of the federal Real Estate Settlement Procedures Act of 1974, provided that the licensee discloses the receipt of the referral fee and complies with all other applicable California laws. ANALYSIS The federal Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. § 2601 -2617; "Act") 1 was enacted to prohibit certain industry practices and impose minimum national standards on the real estate settlement services industry, including residential mortgage lending activities. Section 2601 provides as…