Can HUD impose Civil Money Penalties against Mortgagees, individuals or other program participants?

Yes. FHA’s Mortgagee Review Board may impose civil money penalties against any FHA-approved Mortgagee who knowingly and materially violates FHA requirements as set forth in 24 CFR 30.35.
 
The Assistant Secretary for Housing - Federal Housing Commissioner or his or her designee is authorized to pursue civil money penalties against any principal, officer, or employee of a Mortgagee, or other participants in a Mortgage insured by FHA, including, but not limited to:

  • Sellers
  • Borrowers
  • closing agents
  • title companies
  • real estate agents
  • mortgage brokers
  • appraisers
  • sponsored Third Party Originators (TPO)s
  • dealers
  • consultants
  • contractors
  • subcontractors
  • inspectors 

 
The Assistant Secretary for Housing - Federal Housing Commissioner or his or her designee is authorized to pursue civil money penalties against program participants who knowingly and materially violate FHA requirements as set forth in 24 CFR 30.36. 

For additional information see Handbook 4000.1 V.E.4 and V.E.5 at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02016