CFPB Increases Civil Penalty for RESPA Violations

The Consumer Financial Protection Bureau (CFPB) announced it increased the maximum of each civil penalty under its jurisdiction, including the Real Estate Settlement Procedures Act (RESPA).

The adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The inflation adjustments mandated by the Inflation Adjustment Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law.

The new rule went into effect Jan. 15.