[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: 24CFR81.84]



[Page 466-468]

 

                 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.  81.84  Hearings.



    (a) Applicability. The hearing procedures in this section apply to 

hearings on the record to review cease-and-desist orders, civil money 

penalties, and new programs disapproved based upon a determination by 

the Secretary that such programs are not in the public interest, in 

accordance with 12 U.S.C. 4542(c)(4)(B).

    (b) Hearing requirements. (1) Hearings shall be held in the District 

of Columbia.

    (2) Hearings shall be conducted by a HUD ALJ authorized to conduct 

proceedings under 24 CFR part 26, subpart B.

    (c) Timing. Unless an earlier or later date is requested by a GSE 

and the request is granted by the ALJ, a hearing shall be fixed for a 

date not earlier than 30 days, nor later than 60 days, after:

    (1) Service of the notice of charges under Sec.  81.82;

    (2) Service of the Notice of Intent to Impose Civil Money 

Penalty(ies) under Sec.  81.83; or

    (3) Filing of a request for a hearing under Sec.  81.54(b).

    (d) Procedure. Hearings shall be conducted in accordance with the 

procedures set forth in 24 CFR part 26, subpart B to the extent that 

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

part or FHEFSSA.

    (e) Service--(1) To GSE. Any service required or authorized to be 

made by the Secretary under this subpart G may be made to the Chief 

Executive Officer of a GSE or any other representative as the GSE may 

designate in writing to the Secretary.

    (2) How service may be made. A serving party shall use one or more 

of the following methods of service:

    (i) Personal service;

    (ii) Delivering the papers to a reliable commercial courier service, 

overnight delivery service, or the U.S. Post Office for Express Mail 

Delivery; or

    (iii) Transmission by electronic media, only if the parties mutually 

agree. The serving party shall mail an original of the filing after any 

proper service using electronic media.

    (f) Subpoena authority--(1) General. In the course of or in 

connection with any hearing, the Secretary and the ALJ shall have the 

authority to:



[[Page 467]]



    (i) Administer oaths and affirmations;

    (ii) Take and preserve testimony under oath;

    (iii) Issue subpoenas and subpoenas duces tecum; and

    (iv) Revoke, quash, or modify subpoenas and subpoenas duces tecum 

issued under this paragraph (f).

    (2) Witnesses and documents. The attendance of witnesses and the 

production of documents provided for in this section may be required 

from any place in any State. A witness may be required to appear, and a 

document may be required to be produced, at:

    (i) The hearing; and

    (ii) Any place that is designated for attendance at a deposition or 

production of a document under this section.

    (3) Enforcement. In accordance with 12 U.S.C. 4588(c), the Secretary 

may request the Attorney General of the United States to enforce any 

subpoena or subpoena duces tecum issued pursuant to this section. If a 

subpoenaed person fails to comply with all or any portion of a subpoena 

issued pursuant to this paragraph (f), the subpoenaing party or any 

other aggrieved person may petition the Secretary to seek enforcement of 

the subpoena. A party's petition to the Secretary for enforcement of a 

subpoena in no way limits the sanctions that may be imposed by the ALJ 

on a party who fails to comply with a subpoena issued under this 

paragraph (f).

    (4) Fees and expenses. Witnesses subpoenaed under this section shall 

be paid the same fees and mileage that are paid witnesses in the 

district courts of the United States and may seek reasonable expenses 

and attorneys fees in any court having jurisdiction of any proceeding 

instituted under this section. Such expenses and fees shall be paid by 

the GSE or from its assets.

    (g) Failure to appear. If a GSE fails to appear at a hearing through 

a duly authorized representative, the GSE shall be deemed to have 

consented to the issuance of the cease-and-desist order, the imposition 

of the penalty, or the disapproval of the new program, whichever is 

applicable.

    (h) Public hearings. (1) All hearings shall be open to the public, 

unless the ALJ determines that an open hearing would be contrary to the 

public interest. Where a party makes a timely motion to close a hearing 

and the ALJ denies the motion, such party may file with the Secretary 

within 5 working days a request for a closed hearing, and any party may 

file a reply to such a request within 5 working days of service of such 

a motion. Such motions, requests, and replies are governed by Sec.  

26.38 of this title. When a request for a closed hearing has been filed 

with the Secretary under this paragraph (h)(1), the hearing shall be 

stayed until the Secretary has advised the parties and the ALJ, in 

writing, of the Secretary's decision on whether the hearing should be 

closed.

    (2) Failure to file a timely motion, request or reply is deemed a 

waiver of any objection regarding whether the hearing will be public or 

closed. A party must file any motion for a closed hearing within 10 days 

after:

    (i) Service of the notice of charges under Sec.  81.82;

    (ii) Service of the Notice of Intent to Impose Civil Money 

Penalt(ies) under Sec.  81.83; or

    (iii) Filing of a request for a hearing under Sec.  81.54(b).

    (i) Decision of ALJ. After each hearing, the ALJ shall issue an 

initial decision and serve the initial decision on the GSE, the 

Secretary, any other parties, and the HUD General Counsel. This service 

will constitute notification that the case has been submitted to the 

Secretary.

    (j) Review of initial decision--(1) Secretary's discretion. The 

Secretary, in the Secretary's discretion, may review any initial 

decision.

    (2) Requested by a party. Any party may file a notice of appeal of 

an initial decision to the Secretary in accordance with Sec.  26.51(c) 

of this title. Any waiver of the limitations contained in Sec.  26.51(f) 

of this title on the number of pages for notices of appeal and 

responses, of the time limitation in Sec.  26.51(c) of this title for 

filing a notice of appeal of the initial decision, or any other waivers 

under this subpart shall not be subject to the publication requirements 

in 42 U.S.C. 3535(q).



[[Page 468]]



    (k) Final decision. (1) The initial decision will become the final 

decision unless the Secretary issues a final decision within 90 days 

after the initial decision is served on the Secretary.

    (2) Issuance of final decision by Secretary. The Secretary may 

review any finding of fact, conclusion of law, or order contained in the 

initial decision of the ALJ and may issue a final decision in the 

proceeding. Any decision shall include findings of fact upon which the 

decision is predicated. The Secretary may affirm, modify, or set aside, 

in whole or in part, the initial decision or may remand the initial 

decision for further proceedings. The final decision shall be served on 

all parties and the ALJ.

    (l) Decisions on remand. If the initial decision is remanded for 

further proceedings, the ALJ shall issue an initial decision on remand 

within 60 days of the date of issuance of the decision to remand, unless 

it is impractical to do so.

    (m) Modification. The Secretary may modify, terminate, or set aside 

any order in accordance with 12 U.S.C. 4582(b)(2).



[60 FR 61888, Dec. 1, 1995, as amended at 61 FR 50219 Sept. 24, 1996]