Toll Brothers Is a High-End Home Builder

Toll Brothers is a high-end home builder. Toll Brothers also owns First Rate Mortgage Brokers and United First Title Company. Each Toll Brothers home buyer is referred to First Rate and United First for their mortgage and closing services once they have signed their contract with Toll Brothers. The homebuyers are not told of the relationships of Toll Brothers to First Rate and United First.

A) Toll Brothers has not violated RESPA because referrals are not prohibited under RESPA.
B) Toll Brothers has violated RESPA unless it can show that the fees it charges through its wholly owned entity are less than the buyers could obtain elsewhere.
C) Toll Brothers has violated RESPA.
D) RESPA does not apply to builder referrals to mortgage and title companies.