[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: 24CFR30.60]



[Page 312-313]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

Contents

 

                          Subpart B_Violations

 

Sec.  30.60  Dealers or loan correspondents.



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

Commissioner, or his or her designee, may initiate a civil money penalty 

action against any dealer or loan correspondent who violates section 

2(b)(7) of the National Housing Act (12 U.S.C. 1703). Such violations 

include, but are not limited to:

    (1) Falsifying information on an application for dealer approval or 

reapproval submitted to a lender;

    (2) Falsifying statements on a HUD credit application, improvement 

contract, note, security instrument, completion certificate, or other 

loan document;

    (3) Failing to sign a credit application if the dealer or loan 

correspondent assisted the borrower in completing the application;

    (4) Falsely certifying to a lender that the loan proceeds have been 

or will be spent on eligible improvements;

    (5) Falsely certifying to a lender that the property improvements 

have been completed;

    (6) Falsely certifying that a borrower has not been given or 

promised any cash payment, rebate, cash bonus, or anything of more than 

nominal value as an inducement to enter into a loan transaction;

    (7) Making a false representation to a lender with respect to the 

creditworthiness of a borrower or the eligibility of the improvements 

for which a loan is sought.

    (b) Continuing violation. Each day that a violation continues shall 

constitute a separate violation.

    (c) Amount of penalty. The maximum penalty is $6,500 for each 

violation, up



[[Page 313]]



to a limit for any particular person of $1,250,000 during any one-year 

period.



[61 FR 50215, Sept. 24, 1996, as amended at 68 FR 12788, Mar. 17, 2003]