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

FHA’s Mortgagee Review Board (MRB) is authorized to impose civil money penalties against any FHA-approved Mortgagee that does not comply with HUD and FHA statutory, regulatory, and any Handbook requirements, the Real Estate Settlement Procedures Act (RESPA), or the non-discrimination requirements of the Equal Credit Opportunity Act (ECOA), the Fair Housing Act, or Executive Order 11063 on Equal Opportunity in Housing.
 
The MRB 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.  HUD may also impose civil money penalties against individuals and other program participants for violations of FHA mortgage insurance program requirements.
 
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 TPOs
  • 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. 

24 CFR 30.35; 24 CFR 30.36 https://www.ecfr.gov/cgi-bin/text-idx?SID=5cd6600fc134736613632d4a41538244&mc=true&node=pt24.1.30&rgn=div5
 
For additional information see Handbook 4000.1 V.E.4.a.v. 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