The maximum civil penalty for each violation of the Federal SAFE Act is $34,401.
Understanding Civil Penalties Under Federal Regulations
Federal laws impose civil monetary penalties to ensure compliance with consumer protection and financial regulations. These penalty amounts are subject to periodic adjustments to account for inflation. The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act of 2008), specifically 12 U.S.C. 5113(d)(2), sets out civil penalties for its violations.
For violations of federal consumer financial laws, various maximum penalty amounts apply depending on the specific statute and the nature of the violation. Below is a summary of maximum civil penalty amounts for certain acts:
| Law | Penalty Description | Maximum Penalty Amount |
|---|---|---|
| SAFE Act, 12 U.S.C. 5113(d)(2) | Per violation | $34,401 |
| Truth in Lending Act, 15 U.S.C. 1639e(k)(1) | First violation | $13,627 |
| Truth in Lending Act, 15 U.S.C. 1639e(k)(2) | Subsequent violations | $27,252 |
As indicated, the Federal SAFE Act carries a civil penalty of $34,401 for each violation, emphasizing the importance of compliance for mortgage loan originators and institutions.
