What potential consequences can arise from violating RESPA?

Violating the Real Estate Settlement Procedures Act (RESPA) can lead to significant penalties, as it is designed to protect consumers by ensuring transparency in the settlement process. The correct answer highlights that such violations can result in a fine of up to $10,000 and/or imprisonment for up to one year. This illustrates the seriousness with which regulatory authorities treat non-compliance.

RESPA violations can include practices like kickbacks, unearned fees, and failure to provide required disclosures, all of which undermine consumer protection in the real estate transaction process. The substantial fines and potential for imprisonment underscore the importance of adhering to the regulations set forth by RESPA to promote fair and ethical practices in the mortgage industry.

While other options suggest alternatives like losing a mortgage license or receiving a warning, they do not convey the same level of legal repercussions as indicated by the correct answer, which reflects the federal government's strong stance against violations of consumer protection laws.