Page:United States Statutes at Large Volume 111 Part 2.djvu/334

 Ill STAT. 1414 PUBLIC LAW 105-65 —OCT. 27, 1997 (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 insur£ince 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 L"; 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. Part 2—FHA Multifamily Provisions SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS, DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY PROJECTS. (a) CIVIL MONEY PENALTIES AGAINST MULTIFAMILY MORTGA- GORS.—Section 537 of the National Housing Act (12 U.S.C. 1735f- 15) is amended— (1) in subsection (b)(1), by striking "on that mortgagor" and inserting "on that mortgagor, on a general partner of a partnership mortgagor, or on any officer or director of a corporate mortgagor"; (2) in subsection (c)— (A) by striking the subsection heading and inserting the following: "(c) OTHER VIOLATIONS.— "; and (B) in paragraph (1)—

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