What’s an affiliated business arrangement (AfBA)?
In terms of Real Estate Settlement Procedures (RESPA) Act of 1974, an AfBA is an arrangement in which a person, or an affiliate of that person who is in a position to refer real estate settlement business, is either affiliated with or owns more than one percent of a settlement services provider, and that person directly or indirectly refers business to the provider or affirmatively influences selection of the provider. A real estate broker is listed as one example of a person in a position to refer real estate settlement business.