source:
  type: regulation
  id: reg-x-1024.15
  authority: 12 CFR §1024.15 — Affiliated business arrangements
  description: 'Regulation X §1024.15 sets the conditions under which an affiliated

    business arrangement is not a §1024.14/RESPA section 8 violation:

    Appendix D ABA Disclosure Statement on separate paper at or before

    referral, no required use of a particular provider, and only return

    on ownership/franchise interest as non-§1024.14(g) value.

    '
obligations:
- id: reg-x-1024.15-a
  canonical_id: reg-x-1024.15-a
  section: 12 CFR §1024.15(a)
  description: '(a): (a) General. An affiliated business arrangement is defined in section 3(7) of RESPA
    ( 12 U.S.C. 2602(7) ).'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: (a) General. An affiliated business arrangement is defined in section 3(7) of RESPA
      ( 12 U.S.C. 2602(7) ).
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-b
  canonical_id: reg-x-1024.15-b
  section: 12 CFR §1024.15(b)
  description: '(b): (b) Violation and exemption. An affiliated business arrangement is not a violation
    of section 8 of RESPA ( 12 U.S.C. 2607 ) and of § 1024.14 if the conditions set forth in this section
    are satisfied. Paragraph (b)(1) of this section shall not apply to the extent it is inconsistent with
    section 8(c)(…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: '(b) Violation and exemption. An affiliated business arrangement is not a violation
      of section 8 of RESPA ( 12 U.S.C. 2607 ) and of § 1024.14 if the conditions set forth in this section
      are satisfied. Paragraph (b)(1) of this section shall not apply to the extent it is inconsistent
      with section 8(c)(4)(A) of RESPA ( 12 U.S.C. 2607(c)(4)(A) ). (1) The person making each referral
      has provided to each person whose business is referred a written disclosure, in the format of the
      Affiliated Business Arrangement Disclosure Statement set forth in appendix D of this part, of the
      nature of the relationship (explaining the ownership and financial interest) between the provider
      of settlement services (or business incident thereto) and the person making the referral and of
      an estimated charge or range of charges generally made by such provider (which describes the charge
      using the same terminology, as far as practical, as section L of the HUD -1 settlement statement).
      The disclosures must be provided on a separate piece of paper no later than the time of each referral
      or, if the lender requires use of a particular provider, the time of loan application , except that:'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-i
  canonical_id: reg-x-1024.15-i
  section: 12 CFR §1024.15(i)
  description: '(i): (i) Where a lender makes the referral to a borrower, the condition contained in paragraph
    (b)(1) of this section may be satisfied at the time that the good faith estimate or a statement under
    § 1024.7(d) is provided; and (ii) Whenever an attorney or law firm requires a client to use a particular
    tit…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: (i) Where a lender makes the referral to a borrower, the condition contained in paragraph
      (b)(1) of this section may be satisfied at the time that the good faith estimate or a statement
      under § 1024.7(d) is provided; and (ii) Whenever an attorney or law firm requires a client to use
      a particular title insurance agent, the attorney or law firm shall provide the disclosures no later
      than the time the attorney or law firm is engaged by the client. (iii) Failure to comply with the
      disclosure requirements of this section may be overcome if the person making a referral can prove
      by a preponderance of the evidence that procedures reasonably adopted to result in compliance with
      these conditions have been maintained and that any failure to comply with these conditions was unintentional
      and the result of a bona fide error. An error of legal judgment with respect to a person 's obligations
      under RESPA is not a bona fide error. Administrative and judicial interpretations of section 130(c)
      of the Truth in Lending Act shall not be binding interpretations of the preceding sentence or section
      8(d)(3) of RESPA ( 12 U.S.C. 2607(d)(3) ). (2) No person making a referral has required (as defined
      in § 1024.2 , “required use”) any person to use any particular provider of settlement services or
      business incident thereto, except if such person is a lender , for requiring a buyer, borrower or
      seller to pay for the services of an attorney, credit reporting agency , or real estate appraiser
      chosen by the lender to represent the lender 's interest in a real estate transaction, or except
      if such person is an attorney or law firm for arranging for issuance of a title insurance policy
      for a client, directly as agent or through a separate corporate title insurance agency that may
      be operated as an adjunct to the law practice of the attorney or law firm, as part of representation
      of that client in a real estate transaction. (3) The only thing of value that is received from the
      arrangement other than payments listed in § 1024.14(g) is a return on an ownership interest or franchise
      relationship.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-i
  canonical_id: reg-x-1024.15-i
  section: 12 CFR §1024.15(i)
  description: '(i): (i) In an affiliated business arrangement: (A) Bona fide dividends, and capital or
    equity distributions, related to ownership interest or franchise relationship, between entities in
    an affiliate relationship , are permissible; and (B) Bona fide business loans, advances, and capital
    or equity contrib…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: '(i) In an affiliated business arrangement: (A) Bona fide dividends, and capital
      or equity distributions, related to ownership interest or franchise relationship, between entities
      in an affiliate relationship , are permissible; and (B) Bona fide business loans, advances, and
      capital or equity contributions between entities in an affiliate relationship (in any direction),
      are not prohibited—so long as they are for ordinary business purposes and are not fees for the referral
      of settlement service business or unearned fees. (ii) A return on an ownership interest does not
      include: (A) Any payment which has as a basis of calculation no apparent business motive other than
      distinguishing among recipients of payments on the basis of the amount of their actual, estimated
      or anticipated referrals; (B) Any payment which varies according to the relative amount of referrals
      by the different recipients of similar payments; or (C) A payment based on an ownership, partnership
      or joint venture share which has been adjusted on the basis of previous relative referrals by recipients
      of similar payments. (iii) Neither the mere labeling of a thing of value, nor the fact that it may
      be calculated pursuant to a corporate or partnership organizational document or a franchise agreement,
      will determine whether it is a bona fide return on an ownership interest or franchise relationship.
      Whether a thing of value is such a return will be determined by analyzing facts and circumstances
      on a case by case basis. (iv) A return on franchise relationship may be a payment to or from a franchisee
      but it does not include any payment which is not based on the franchise agreement, nor any payment
      which varies according to the number or amount of referrals by the franchisor or franchisee or which
      is based on a franchise agreement which has been adjusted on the basis of a previous number or amount
      of referrals by the franchiser or franchisees. A franchise agreement may not be constructed to insulate
      against kickbacks or referral fees.'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-c
  canonical_id: reg-x-1024.15-c
  section: 12 CFR §1024.15(c)
  description: '(c): (c) Definitions. As used in this section: Associate is defined in section 3(8) of
    RESPA ( 12 U.S.C. 2602(8) ). Affiliate relationship means the relationship among business entities
    where one entity has effective control over the other by virtue of a partnership or other agreement
    or is under common …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: '(c) Definitions. As used in this section: Associate is defined in section 3(8) of
      RESPA ( 12 U.S.C. 2602(8) ). Affiliate relationship means the relationship among business entities
      where one entity has effective control over the other by virtue of a partnership or other agreement
      or is under common control with the other by a third entity or where an entity is a corporation
      related to another corporation as parent to subsidiary by an identity of stock ownership. Beneficial
      ownership means the effective ownership of an interest in a provider of settlement services or the
      right to use and control the ownership interest involved even though legal ownership or title may
      be held in another person ''s name. Control, as used in the definitions of “associate” and “affiliate
      relationship,” means that a person:'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-i
  canonical_id: reg-x-1024.15-i
  section: 12 CFR §1024.15(i)
  description: '(i): (i) Is a general partner, officer, director, or employer of another person ; (ii)
    Directly or indirectly or acting in concert with others, or through one or more subsidiaries, owns,
    holds with power to vote, or holds proxies representing, more than 20 percent of the voting interests
    of another perso…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: (i) Is a general partner, officer, director, or employer of another person ; (ii)
      Directly or indirectly or acting in concert with others, or through one or more subsidiaries, owns,
      holds with power to vote, or holds proxies representing, more than 20 percent of the voting interests
      of another person ; (iii) Affirmatively influences in any manner the election of a majority of the
      directors of another person ; or (iv) Has contributed more than 20 percent of the capital of the
      other person . Direct ownership means the holding of legal title to an interest in a provider of
      settlement service except where title is being held for the beneficial owner. Franchise is defined
      in FTC regulation 16 CFR 436.1 (h). Franchisor is defined in FTC regulation 16 CFR 436.1 (k). Franchisee
      is defined in FTC regulation 16 CFR 436.1 (i). FTC means the Federal Trade Commission . Person who
      is in a position to refer settlement service business means any real estate broker or agent, lender
      , mortgage broker , builder or developer, attorney, title company , title agent, or other person
      deriving a significant portion of his or her gross income from providing settlement services.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-d
  canonical_id: reg-x-1024.15-d
  section: 12 CFR §1024.15(d)
  description: '(d): (d) Recordkeeping. Any documents provided pursuant to this section shall be retained
    for 5 years after the date of execution.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: (d) Recordkeeping. Any documents provided pursuant to this section shall be retained
      for 5 years after the date of execution.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.15-e
  canonical_id: reg-x-1024.15-e
  section: 12 CFR §1024.15(e)
  description: '(e): (e) Appendix B of this part. Illustrations in appendix B of this part demonstrate
    some of the requirements of this section. Truth in Lending Act CFR Toolbox Law about... Articles from
    Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise
    here Help Term…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.15(b)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.15
    snapshot_id: d2321ff0499e1990
    fetched_at: '2026-05-22T18:23:10Z'
    content_hash: sha256:db916ed728fa404511621440857c6ebcca6fc6f8e7819d292495d193b5d7c69b
    paragraph_quote: (e) Appendix B of this part. Illustrations in appendix B of this part demonstrate
      some of the requirements of this section. Truth in Lending Act CFR Toolbox Law about... Articles
      from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us
      Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1024.15 from Cornell LII snapshot d2321ff0499e1990;
      body isolated between nav and notes; substring-verified.
  judgment: false
