Final answer:
The maximum penalty for requiring a borrower to use a specific title company or settlement agent would be based on specific laws such as RESPA, and could be significant. However, for the given options, there might not be an explicit penalty provided, hence option D 'No maximum penalty' could be considered correct for an educative guess. Nevertheless, it's important to consult current laws for precise information.
Step-by-step explanation:
The maximum penalty if a borrower is required to use a specific title company or settlement agent is commonly dictated by the Real Estate Settlement Procedures Act (RESPA), which prohibits such requirements. Violations of these provisions could carry significant penalties. However, as this is a subject that can vary by jurisdiction and the specifics of the legislation in question, a precise answer depends on current laws and regulations. For educational purposes, and without specifying a particular jurisdiction or law, if we are to choose from the options provided, it's likely that no explicit maximum penalty is mentioned, so option D would seem plausible. It's important to consult the actual legal texts or a legal expert for accurate and current information.