Laserfiche WebLink
<br />(3) CIVIL MONBTARY PENALTIES AGAINST GSE' S . - - <br /> <br />(A) IN GENERAL. --If the Federal National <br />Mortgage Association or the Federal Home Loan <br />Mortgage Corporation is found by the Director of <br />'the Office of Federal Housing Enterprise Oversight <br />of the Department of Housing and Urban Development <br />to have a pattern or practice of purchasing loans <br />in violation of the procedures established <br />pursuant to subsection (b) (3), the Director of <br />such Office shall assess a civil penalty against <br />such enterprise in the amount provided under <br />paragraph (5) of this subsection. <br /> <br />(B) DEFINITION. --For purposes of <br />subsection, the term "enterprise" means <br />Federal National Mortgage Association or <br />Federal Home Loan Mortgage Corporation. <br /> <br />(4) NOTICE AND HEARING. --A penalty under this <br />subsection may be issued only after notice and an <br />opportunity for a hearing on the record. <br /> <br />this <br />the <br />the <br /> <br />(5) AMOUNT.--A civil monetary penalty under this <br />subsection may not exceed $350 for each violation under <br />paragraph (2) or paragraph (3). The total amount of <br />penalties assessed under this subsection against any <br />single regulated lending institution or enterprise <br />during any calendar year may not exceed $100,000. <br /> <br />(6) LENDER COMPLIANCE. --Notwithstanding any State or <br />local. law, for purposes of this subsection, any <br />regulated lending institution that purchases flood <br />insurance or renews a contract for flood insurance on <br />behalf of or as an agent of a borrower of a loan for <br />which flood insurance is required shall be considered to <br />have complied with the regulations issued under <br />subsection (b). <br /> <br />(7) EFFECT OF TRANSFER ON LIABILITY. - -Any sale or <br />other transfer of a loan by a regulated lending <br />institution that has committed a violation under <br />paragraph (1), that occurs subsequent to the violation, <br />shall not affect the liability of the transferring <br />lender with respect to any penalty under this <br />subsection. A lender shall not be liable for any <br />violations relating to a loan committed by another <br />regulated lending institution that previously held the <br />loan. <br /> <br />12 <br />