What is the criminal penalty for violating RESPA?

The criminal penalty for violating the Real Estate Settlement Procedures Act (RESPA) is designed to enforce compliance with the regulations that protect consumers in real estate transactions. The correct amount stipulated for violations is a maximum fine of $10,000 in addition to a possible prison sentence of up to 1 year. This reflects the serious nature of such violations, which can include actions such as illegal kickbacks or referral fees that undermine the integrity of real estate transactions and consumer trust.

The penalties aim to deter unethical practices that could harm consumers by ensuring they are treated fairly in the settlement process. The specifics of this penalty indicate a structured response from regulatory authorities to maintain the legality and transparency of real estate financing. Understanding these penalties is crucial for mortgage loan officers to ensure compliance and avoid serious legal repercussions.