Question

violations under the real estate settlement procedures act (respa) for kickbacks or fee-splitting are subject to

Answer 1

Violations under RESPA for kickbacks or fee-splitting are subject to substantial penalties, including fines up to $10,000 and imprisonment, with enforcement by the CFPB.

Step-by-step explanation:

Real Estate Settlement Procedures Act:

Violations under the Real Estate Settlement Procedures Act (RESPA) for kickbacks or fee-splitting are subject to severe penalties including fines and imprisonment. Under RESPA, it is illegal for anyone to receive or pay any fee, kickback, or thing of value in exchange for referrals of settlement service business related to a federally related mortgage loan. Violators may face penalties, including up to $10,000 in fines and one year in prison for each offense.

Moreover, parties involved in the loan transaction can be held responsible both civilly and criminally, and borrowers may also sue for damages if they have been charged for services that are not reasonable or properly disclosed. Enforcement is carried out by the Consumer Financial Protection Bureau (CFPB), which may conduct investigations and bring enforcement actions against violators.

Answer 2

RESPA violations for kickbacks or fee-splitting can lead to civil penalties, including hefty fines and lawsuits, with the ability for consumers to recover treble damages and attorney fees.

Step-by-step explanation:

Violations under the Real Estate Settlement Procedures Act (RESPA) for kickbacks or fee-splitting are subject to civil penalties, including fines and potential lawsuits.

RESPA, a consumer protection statute, prohibits certain practices that can increase the cost of real estate settlement services. Kickbacks or referral fees in exchange for the referral of settlement service business are banned. Similarly, fee-splitting for services that are not actually rendered is also illegal under RESPA.

Should an entity or individual breach these prohibitions, they could face enforcement actions by the Consumer Financial Protection Bureau (CFPB), include fines up to $10,000 for each violation and imprisonment for up to one year. Additionally, individual consumers harmed by these practices have the right to file civil lawsuits, where they can recover treble damages (three times the amount of any charge paid for the service) and attorney's fees.