### Question
How is the term affiliated business arrangement defined?


### Answer
The term **affiliated business arrangement** is defined in *12 U.S.C. § 2602* as the following:

> 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

#### Citation:
  - *12 U.S.C. § 2602*
  - Heading: **CHAPTER 27-REAL ESTATE SETTLEMENT PROCEDURES**

