Under RESPA Section 8, what must be disclosed about affiliated business arrangements?

• A. No disclosure required.
• B. Disclosure of affiliated business arrangements.
• C. Only verbal disclosure.
• D. Disclosure of loan terms.

Answer: (B)

Transparency about affiliated business arrangements is required. When a settlement service provider has an affiliated business arrangement with another provider, the borrower must receive a written disclosure that the arrangement exists, describes the relationship, and states that the borrower is not required to use the affiliated company. This helps prevent improper incentives for referrals and lets the borrower make an informed choice about who provides settlement services. The other options don’t fit because RESPA requires this specific disclosure about the AfBA, not no disclosure, not only verbal disclosure, and not disclosure of loan terms.