[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR30.36]



[Page 310]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 30_CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT--Table of 

Contents

 

                          Subpart B_Violations

 

Sec.  30.36  Other participants in FHA programs.



    (a) General. The Assistant Secretary for Housing-Federal Housing 

Commissioner (or his/her designee) may initiate a civil money penalty 

action against any principal, officer, or employee of a mortgagee or 

lender, or other participants in either a mortgage insured under the 

National Housing Act or any loan that is covered by a contract of 

insurance under title I of the National Housing Act, or a provider of 

assistance to the borrower in connection with any such mortgage or loan, 

including:

    (1) Sellers;

    (2) Borrowers;

    (3) Closing agents;

    (4) Title companies;

    (5) Real estate agents;

    (6) Mortgage brokers;

    (7) Appraisers;

    (8) Loan correspondents;

    (9) Dealers;

    (10) Consultants;

    (11) Contractors;

    (12) Subcontractors; and

    (13) Inspectors.

    (b) Knowing and material violations. The Assistant Secretary for 

Housing-Federal Housing Commissioner or his/her designee may impose a 

civil penalty on any person or entity identified in paragraph (a) of 

this section who knowingly and materially:

    (1) Submits false information to the Secretary in connection with 

any mortgage insured under the National Housing Act (12 U.S.C. 1701 et 

seq.), or any loan that is covered by a contract of insurance under 

title I of the National Housing Act;

    (2) Falsely certifies to the Secretary or submits a false 

certification by another person or entity to the Secretary in connection 

with any mortgage insured under the National Housing Act or any loan 

that is covered by a contract of insurance under title I of the National 

Housing Act; or

    (3) Is a loan dealer or correspondent and fails to submit to the 

Secretary information which is required by regulations or directives in 

connection with any loan that is covered by a contract of insurance 

under title I of the National Housing Act.

    (c) Amount of penalty. The maximum penalty is $5,500 for each 

violation, up to a limit of $1,100,000 for all violations committed 

during any one-year period. Each violation shall constitute a separate 

violation as to each mortgage or loan application.



[65 FR 9087, Feb. 23, 2000]