What is the penalty for violating The Real Estate Settlement Procedures Act's Section 8, which prohibits giving kickbacks, fee splitting, or paying unearned fees?
a) One year in jail and up to $10,000 in fines.
b) Up to one year in jail and up to $10,000 in fines plus civil liabilities of up to three times the amount of the improper fees.
c) A $3,000 fine per occurrence plus unspecified civil liabilities.
d) None of the above
The correct answer is "B" The Department of Housing and Urban Development says: "Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed. Violations of Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case a person who violates Section 8 may be fined up to $10,000 and imprisoned up to one year. In a private law suit a person who violates Section 8 may be liable to the person charged for the settlement service an amount equal to three times the amount of the charge paid for the service." For more on The Real Estate Settlement Procedures Act. see http://www.hud.gov/offices/hsg/ramh/res/respamor.cfm