What is the penalty for noncompliance with RESPA?

The penalty for noncompliance with the Real Estate Settlement Procedures Act (RESPA) is indeed $10,000 per violation and/or imprisonment for up to one year. This reflects the seriousness with which violations of RESPA are treated, as the law is designed to promote transparency in the real estate settlement process and prevent unlawful practices such as kickbacks and referral fees.

RESPA aims to protect consumers from unnecessary fees and ensure they receive clear and accurate information regarding their mortgage. The penalties established under RESPA are intended to deter misconduct and encourage compliance among mortgage professionals and real estate service providers.

The other options do not accurately reflect the penalties set forth under RESPA, as they either state incorrect fine amounts or align with penalties associated with other federal regulations. Understanding these penalties helps MLOs recognize the importance of adhering to RESPA guidelines to avoid significant financial repercussions and potential imprisonment.