What is one requirement for an affiliated business arrangement disclosure to be compliant with RESPA?

An affiliated business arrangement disclosure must clearly indicate that consumers are not required to use any of the providers that are affiliated with the entity making the disclosure. This requirement ensures that consumers are informed of their options and can make choices without feeling pressured to select a specific provider. It enhances transparency and allows consumers to choose the most suitable services based on their preferences, rather than being bound to a referral.

In contrast, the other options do not align with the compliance requirements set by the Real Estate Settlement Procedures Act (RESPA). For instance, stating that the disclosure must be written but optional undermines its necessity; the disclosure must be provided in writing. Additionally, delivering the disclosure after settlement fails to comply with the requirement that consumers receive this information early in the process, allowing them to make informed decisions. Finally, allowing the disclosure to be verbal would not meet the standard for written disclosures mandated by RESPA, which is aimed at ensuring consumers have a clear and tangible understanding of their affiliations and choices prior to making decisions.