West Virginia Mortgage Law Practice Test

A civil administrative penalty of up to _______ may be imposed for each violation of the West Virginia SAFE Mortgage Licensing Act:

1. $25,000

2. $50,000

3. $100,000

4. $200,000

The correct answer is: $25,000

The correct answer for the civil administrative penalty imposed for each violation of the West Virginia SAFE Mortgage Licensing Act is $25,000. This amount reflects the act's intent to deter non-compliance and to ensure that mortgage professionals adhere to the established regulations for licensing and conduct in the industry. By setting the penalty at this level, the law balances the need for enforcement with the importance of allowing mortgage professionals to operate without facing excessive financial burdens that could jeopardize their ability to do business. The framework established under the West Virginia SAFE Mortgage Licensing Act is designed to maintain a fair and competitive market while protecting consumers from potential abuses or unethical behavior in the mortgage industry. The other options presented indicate significantly higher penalties, which exceed the limits set forth in the act, reflecting either a misunderstanding of the act's provisions or an overestimation of the penalties associated with violations.