Which of the following is a prohibition under RESPA regarding settlement services?

The correct choice indicates a key aspect of the Real Estate Settlement Procedures Act (RESPA). This legislation focuses on ensuring that consumers are fully informed about the nature and costs associated with settlement services when they are buying a home or refinancing a mortgage.

Increasing the costs of services can become a serious violation under RESPA because the act aims to protect consumers from unfair practices and hidden fees during the closing process. By preventing the inflation of costs associated with settlement services, RESPA helps maintain transparency and fairness, empowering consumers to make informed financial decisions without burdening them with unexpected charges.

In contrast, the other options relate to actions that are permissible under RESPA. Providing referrals to service providers is allowed as long as it is done without compensation or agreement for business. Requesting an estimate of costs from service providers is also a standard practice encouraged by RESPA to ensure that the consumer is aware of what they might expect to pay, thus improving consumer understanding. Offering consumer protection information is encouraged under RESPA as it aligns with the act's purpose of informing and protecting consumers in real estate transactions, rather than prohibiting it.