Page:United States Statutes at Large Volume 103 Part 2.djvu/1023

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PUBLIC LAW 101-235—DEC. 15, 1989 103 STAT. 2033 section. A letter of reprimand shall explain the violation and describe actions the mortgagee should take to correct the violation. "(B) PROBATION,—The Board may place a mortgagee on probation for a specified period of time not to exceed 6 months for the purpose of evaluating the mortgagee's compliance with Federal Housing Administration require- ments, the Equal Credit Opportunity Act, the Fair Housing Act, Executive Order 11063, or orders of the Board. During the probation period, the Board may impose reasonable additional requirements on a mortgagee including super- vision of the mortgagee's activities by the Federal Housing Administration, periodic reporting to the Federal Housing Commissioner, or submission to Federal Housing Adminis- tration audits of internal financial statements, audits by an independent certified public accountant or other audits. "(C) SUSPENSION. — The Board may issue an order suspending a mortgagee's approval for doing business with the Federal Housing Administration if there exists ade- quate evidence of a violation or violations and continuation of the mortgagee's approval, pending or at the completion of any audit, investigation, or other review, or such administrative or other legal proceedings as may ensue, would not be in the public interest or in the best interests of the Department. A suspension shall last for not less than 6 months. During the period of suspension, the Federal Hous- ing Administration shall not commit to insure any mort- gage originated by the suspended mortgagee. " (D) WITHDRAWAL.—TT ie Board may issue an order withdrawing a mortgagee if the Board has made a deter- mination of a serious violation or repeated violations by the mortgagee. The Board shall determine the terms of such withdrawal, but the term shall be not less than 1 year. Where the Board has determined that the violation is egregious or willful, the withdrawal shall be permanent. "(E) SETTLEMENTS,—The Board may at any time enter into a settlement agreement with a mortgagee to resolve any outstanding grounds for an action. Agreements may include provisions such as— "(i) cessation of any violation; "(ii) correction or mitigation of the effects of any violation; "(iii) repa3rment of any sums of money wrongfully or incorrectly paid to the mortgagee by a mortgagor, by a seller or by the Federal Housing Administration; "(iv) actions to collect sums of money wrongfully or incorrectly paid by the mortgagee to a third party; "(v) indemnification of the Federal Housing Adminis- tration for mortgage insurance claims on mortgages originated in violation of Federal Housing Administra- tion requirements; "(vi) modification of the length of the penalty imposed; or "(vii) implementation of other corrective measures acceptable to the Secretary.