Did you know that misconduct of real estate licensees may subject them to liability under federal law as well as state laws and Commission rules? Licensees should be aware that if either the buyer or the real estate agent has made or aided in the falsification of a loan application to a federally insured lender, including misstatements of the purchase price, amount of the down payment, or credit worthiness of the loan applicant, those involved may be charged with felonies punishable by up to five (5) years in prison and a $10,000 fine. (See 18 U.S.C. Section 371.)