Page:United States Statutes at Large Volume 97.djvu/1263

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1231 "(7) the term 'controlled business arrangement' means an arrangement in which (A) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1 percent in a provider of settlement services; and (B) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the selection of that provider; and "(8) the term 'associate' means one who has one or more of the following relationships with a person in a position to refer settlement business: (A) a spouse, parent, or child of such person; (B) a corporation or business entity that controls, is controlled by, or is under common control with such person; (C) an employer, officer, director, partner, franchisor, or franchisee of such person; or (D) anyone who has an agreement, arrange- ment, or understanding, with such person, the purpose or sub- stantial effect of which is to enable the person in a position to refer settlement business to benefit financially from the refer- rals of such business.". (b) Section 8(c) of such Act is amended— (1) by striking out "or" before "(3)"; (2) by redesignating clause (4) as clause (5); (3) by inserting the following after "brokers," at the end of clause (3): "(4) controlled business arrangements so long as (A) at or prior to the time of the referral a disclosure is made of the existence of such an arrangement to the person being referred and, in connection with the referral, such person is provided a written estimate of the charge or range of charges generally made by the provider to which the person is referred, except that where a lender makes the referral, this requirement may be satistied as part of and at the time that the estimates of settlement charges required under section 5(c) are provided, (B) such person is not required to usc any particular provider of settlement services, and (C) the only thing of value that is received from the arrangement, other than the payments per- mitted under this subsection, is a return on the ownership interest or franchise relationship,"; and (4) by inserting the following new sentence at the end thereof: "For purposes of the preceding sentence, the following shall not be considered a violation of clause 4(B): (i) any arremgement that requires 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 (ii) any arrangement where an attorney or law firm represents a client in a real estate transaction and issues or arranges for the issuance of a policy of title insurance in the transaction directly as agent or through a separate corporate title insurance agency that may be established by that attorney or law firm and operated as an adjunct to his or its law practice.". (c) Section 8(d) of such Act is amended by striking out paragraph (2) and inserting in lieu thereof the following: •'(2) Any person or persons who violate the prohibitions or limita- tions of this section shall be jointly and severally liable to the person or persons charged for the settlement service involved in the viola- "Controlled business arrangement; "Associate." 12 USC 2607. 12 USC 2604. Violations.

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