[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: 24CFR81.83]



[Page 465-466]

 

                 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.  81.83  Civil money penalties.



    (a) Imposition. The Secretary may impose a civil money penalty on a 

GSE that has failed:

    (1) 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) To make a good-faith effort to comply with a housing plan 

submitted and approved by the Secretary; or

    (3) 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) Amount of penalty. The amount of the penalty shall not exceed:

    (1) For any failure described in paragraph (a)(1) of this section, 

$30,000 for each day that the failure occurs; and

    (2) For any failure described in paragraphs (a)(2) or (a)(3) of this 

section, $11,000 for each day that the failure occurs.

    (c) Factors in determining amount of penalty. In determining the 

amount of a penalty under this section, the Secretary shall consider the 

factors in 12 U.S.C. 4585(c)(2) including the public interest.

    (d) Procedures--(1) Notice of Intent. The Secretary shall notify the 

GSE in writing of the Secretary's determination to impose a civil money 

penalty by issuing a Notice of Intent to Impose Civil Money Penalties 

(``Notice of Intent''). The Notice of Intent shall provide:

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

misconduct;

    (ii) The amount of the civil money penalty;



[[Page 466]]



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

    (iv) The procedures to follow to obtain a hearing;

    (v) A statement of the consequences of failing to request a hearing; 

and

    (vi) The date the penalty shall be due unless the GSE contests the 

matter.

    (2) To appeal the Secretary's decision to impose a civil money 

penalty, the GSE shall, within 20 days of service of the Notice of 

Intent, file a written Answer with the Chief Docket Clerk, Office of 

Administrative Law Judges, Department of Housing and Urban Development, 

at the address provided in the Notice of Intent.

    (3) Administrative law judge. A HUD ALJ shall preside over any 

hearing conducted under this section, 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.

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

order or the ALJ finds, on the hearing record, that a preponderance of 

the evidence establishes the conduct specified in the notice of charges, 

the ALJ may issue an order imposing a civil money penalty.

    (5) Consultation with the Director. In the Secretary's discretion, 

the Director of OFHEO may be requested to review any Notice of Intent, 

determination, order, or interlocutory ruling arising from a hearing.

    (e) Action to collect penalty. The Secretary may request the 

Attorney General of the United States to bring an action to collect the 

penalty, in accordance with 12 U.S.C. 4585(d). Interest on, and other 

charges for, any unpaid penalty may be assessed in accordance with 31 

U.S.C. 3717.

    (f) Settlement by Secretary. The Secretary may compromise, modify, 

or remit any civil money penalty that may be, or has been, imposed under 

this section.



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

68 FR 12788, Mar. 17, 2003]