Which one of the following is out of the FIRREA penalties included in the enforcement section of Adjusted Mortgage Regulation (12 CFR 34)?
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A. B. C. D.AC
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) established penalties for violations of federal laws and regulations relating to financial institutions. These penalties are included in the enforcement section of the Adjusted Mortgage Regulation (12 CFR 34), which is designed to ensure that banks make mortgage loans in a safe and sound manner.
The correct answer to the question is (D) Penalties up to $6,500 per day for violations of laws and regulations. This penalty amount is incorrect and is not included in the FIRREA penalties outlined in the enforcement section of the Adjusted Mortgage Regulation.
The other answer choices are accurate and reflect the penalties outlined in the regulation:
A. Penalties up to $7,500 per day for violations of laws and regulations - This penalty may be assessed for any violation of a law or regulation relating to the safety and soundness of the bank, including mortgage lending practices.
B. Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved - This penalty may be assessed if a bank engages in reckless or intentional violations of laws and regulations that result in significant losses to the bank or gain to the parties involved.
C. Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party - This penalty may be assessed against individuals who knowingly engage in violations of laws and regulations that result in substantial losses to the bank or gains to the parties involved.
In summary, the FIRREA penalties included in the enforcement section of the Adjusted Mortgage Regulation provide for significant penalties for violations of laws and regulations relating to the safety and soundness of banks and their mortgage lending practices.