The majority of agency law violations occur in three areas:
The purpose of the Real Estate Settlement Procedures Act (RESPA) is consumer-oriented in that it requires numerous consumer disclosures and prohibits certain abusive settlement practices.
Violations of RESPA's anti-kickback, referral fees, and unearned fees provisions are subject to criminal and civil penalties. Criminal penalties result in fines of up to $10,000 and imprisonment for up to one year.
RESPA Section 9 prohibits a seller from requiring the homebuyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount that is equal to three times all charges made for the title insurance.
Predatory lending is any lending practice wherein the lender tries to make money at the expense of the customer by offering loan products with significantly worse terms or higher costs than similarly qualified customers.
