What are the penalty fees for failing to submit the required Form RE 866 - Mortgage Loan Activity Notification?

The penalty fees for failing to submit the required Form RE 866 - Mortgage Loan Activity Notification are set at varying levels based on the number of occurrences of the failure to submit. In this case, the correct answer indicates that the penalties are $50 for the first occurrence, $100 for the second occurrence, and a substantial $10,000 for the third and subsequent occurrences.

This fee structure is designed to encourage compliance and ensure that mortgage loan activity is reported appropriately. The smaller penalties for the initial failures serve as a warning mechanism, while the significantly higher penalty for repeated non-compliance demonstrates the importance of adhering to the reporting requirements as well as the serious consequences of neglecting these responsibilities.

Other options present different combinations of penalty amounts which do not align with the established standards for this specific form, and therefore do not accurately reflect the regulatory framework that governs reporting obligations in the mortgage industry.