What is the penalty for each violation of the Residential Mortgage Lender, Broker and Servicer Act?

The penalty for each violation of the Residential Mortgage Lender, Broker and Servicer Act involves both a significant monetary fine and the possibility of imprisonment. Specifically, the correct answer reflects a fine of up to $500 along with the potential for imprisonment for six months. This combination serves as a strong deterrent against violations of the act, ensuring that mortgage lenders, brokers, and servicers adhere to the regulatory standards established in West Virginia.

The inclusion of both a monetary penalty and possible imprisonment underscores the seriousness of compliance within the mortgage industry. It also highlights that regulatory bodies are empowered to enforce the law to maintain ethical practices and protect consumers.

Other options suggest penalties that either do not align with the statutory framework or do not capture the seriousness of the violations as thoroughly. The values mentioned in those choices may be too low or may not accurately reflect the legal consequences established by the law. This understanding is crucial for Mortgage Loan Originators as it emphasizes the importance of compliance to avoid these penalties.