[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: 24CFR81.82]



[Page 465]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 81_THE SECRETARY OF HUD'S REGULATION OF THE FEDERAL NATIONAL 

MORTGAGE ASSOCIATION (FANNIE MAE) AND THE FEDERAL HOME LOAN MORTGAGE 

CORPORATION (FREDDIE MAC)--Table of Contents

 

         Subpart G_Procedures for Actions and Review of Actions

 

Sec.  81.82  Cease-and-desist proceedings.



    (a) Issuance. The Secretary may issue and serve upon a GSE a written 

notice of charges justifying issuance of a cease-and-desist order, if 

the Secretary determines the GSE:

    (1) Has failed to submit, within the time prescribed in Sec.  81.22, 

a housing plan that substantially complies with 12 U.S.C. 4566(c), as 

implemented by Sec.  81.22;

    (2) Is failing or has failed, or there is reasonable cause to 

believe that the GSE is about to fail, to make a good-faith effort to 

comply with a housing plan submitted to and approved by the Secretary; 

or

    (3) Has failed to submit any of the information required under 

sections 309(m) or (n) of the Fannie Mae Charter Act, sections 307(e) or 

(f) of the Freddie Mac Act, or subpart E of this part.

    (b) Procedures--(1) Content of notice. The notice of charges shall 

provide:

    (i) A concise statement of the facts constituting the alleged 

misconduct and the violations with which the GSE is charged;

    (ii) Notice of the GSE's right to a hearing on the record;

    (iii) A time and date for a hearing on the record;

    (iv) A statement of the consequences of failing to contest the 

matter; and

    (v) The effective date of the order if the GSE does not contest the 

matter.

    (2) Administrative Law Judge. A HUD Administrative Law Judge (ALJ) 

shall preside over any hearing conducted under this section. The hearing 

shall be conducted in accordance with Sec.  81.84 and, to the extent the 

provisions are not inconsistent with any of the procedures in this part 

or FHEFSSA, with 24 CFR part 26, subpart B.

    (3) Issuance of order. If the GSE consents to the issuance of the 

order or the ALJ finds, based on the hearing record, that a 

preponderance of the evidence established the conduct specified in the 

notice of charges, the ALJ may issue and serve upon the GSE an order 

requiring the GSE to:

    (i) Submit a housing plan that substantially complies with 12 U.S.C. 

4566(c), as implemented by Sec.  81.22;

    (ii) Comply with a housing plan; or

    (iii) Provide the information required under subpart E of this part.

    (4) Effective date. An order under this section shall be effective 

as provided in 12 U.S.C. 4581(c) and Sec.  81.84(m).



[60 FR 61888, Dec. 1, 1995, as amended at 61 FR 50218, Sept. 24, 1996]