CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER PARTICIPANTS IN FHA PROGRAMS.

SEC. 553. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER PARTICIPANTS IN FHA PROGRAMS. (a) Change to Section Title.—Section 536 of the National Housing Act (12 U.S.C. 1735f-14) is amended by striking the section heading and the section designation and inserting the following: “SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER PARTICIPANTS IN FHA PROGRAMS.”. (b) Expansion of Persons Eligible for Penalty.—Section 536(a) of the National Housing Act (12 U.S.C. 1735f-14(a)) is amended— (1) in paragraph (1), by striking the first sentence and inserting the following: “If a mortgagee approved under the Act, a lender holding a contract of insurance under title I, or a principal, officer, or employee of such mortgagee or lender, or other person or entity participating in either an insured mortgage or title I loan transaction under this Act or providing assistance to the borrower in connection with any such loan, including sellers of the real estate involved, borrowers, closing agents, title companies, real estate agents, mortgage brokers, appraisers, loan correspondents and dealers, knowingly and materially violates any applicable provision of subsection (b), the Secretary may impose a civil money penalty on the mortgagee or lender, or such other person or entity, in accordance with this section. The penalty under this paragraph shall be in addition to any other available civil remedy or any available criminal penalty, and may be imposed whether or not the Secretary imposes other administrative sanctions.”; and (2) in paragraph (2)— (A) in the first sentence, by inserting “or such other person or entity” after “lender”; and (B) in the second sentence, by striking “provision” and inserting “the provisions”.111 STAT. 1414 (c) Additional Violations for Mortgagees, Lenders, and Other Participants in FHA Programs.—Section 536(b) of the National Housing Act (12 U.S.C. 1735f–14(b)) is amended— (1) by redesignating paragraph (2) as paragraph (3); (2) by inserting after paragraph (1) the following: “(2) The Secretary may impose a civil money penalty under subsection (a) for any knowing and material violation by a principal, officer, or employee of a mortgagee or lender, or other participants in either an insured mortgage or title I loan transaction under this Act or provision of assistance to the borrower in connection with any such loan, including sellers of the real estate involved, borrowers, closing agents, title companies, real estate agents, mortgage brokers, appraisers, loan correspondents, and dealers for— “(A) submission to the Secretary of information that was false, in connection with any mortgage insured under this Act, or any loan that is covered by a contract of insurance under title I of this Act; “(B) falsely certifying to the Secretary or submitting to the Secretary a false certification by another person or entity; or “(C) failure by a loan correspondent or dealer 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.”; and (3) in paragraph (3), as redesignated, by striking “or paragraph (1)(F)” and inserting “or (F), or paragraph (2)(A), (B), or (C)”. (d) Conforming and Technical Amendments.—Section 536 of the National Housing Act (12 U.S.C. 1735f-14) is amended— (1) in subsection (c)(1)(B), by inserting after “lender” the following: “or such other person or entity”; (2) in subsection (d)(1)— (A) by inserting “or such other person or entity” after “lender”; and (B) by striking “part 25” and inserting “parts 24 and 25”; and (3) in subsection (e), by inserting “or such other person or entity” after “lender” each place that term appears.