123STA T . 1 647PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9mortga g e a s a n agent o f t h e S e c retar ydu r i ng the p eriod that the Secretary ac q uires and ho l ds the mortgage for the purpose of modifying the terms of the mortgage , pro -v ided that the Secretary compensates the e x isting servicer appropriately, as such compensation is determined b y the Secretary consistent, to the maximum extent possible, w ith section 203( b ).I f the mortgage is resold pursuant to subparagraph ( C )(iii), the Secretary may provide for the existing servicer to continue to service the mortgage or may engage another entity to service the mortgage. ’ ’. ( 4 )I MPLE ME NTA T IO N. —T he Secretary of H ousing and U rban D evelopment may implement the amendments made by this subsection through notice or mortgagee letter. (e) C H AN G EO F STAT US .—The N ational Housing A ct is amended by stri k ing section 5 32( 1 2 U.S.C. 1 7 35f – 10) and inserting the following new section
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‘ SEC.532 .C HANG E OFM O RT GAGEE STAT U S. ‘ ‘(a) NOTIFI C ATION.—Upon the occurrence of any action described in subsection (b), an approved mortgagee shall imme- diately submit to the Secretary, in writing, notification of such occurrence. ‘‘(b) ACTIONS.—The actions described in this subsection are as follows: ‘‘(1) The debarment, suspension or a L imited Denial of P articipation (LDP), or application of other sanctions, other exclusions, fines, or penalties applied to the mortgagee or to any officer, partner, director, principal, manager, supervisor, loan processor, loan underwriter, or loan originator of the mort- gagee pursuant to applicable provisions of State or F ederal law. ‘‘(2) The revocation of a State-issued mortgage loan origi- nator license issued pursuant to the S.A.F. E . M ortgage Licensing Act of 200 8 (12 U.S.C. 5101 et seq.) or any other similar declaration of ineligibility pursuant to State law.’’. (f) CI V IL MONE Y PENALTIES.—Section 53 6 of the National Housing Act (12 U.S.C. 1735f–14) is amended— (1) in subsection (b)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by inserting ‘‘or any of its owners, officers, or directors’’ after ‘‘mortgagee or lender’’
(ii) in subparagraph (H), by striking ‘‘title I’’ and all that follows through ‘‘under this Act.’’ and inserting ‘‘title I or II of this Act, or any implementing regula- tion, handbook, or mortgagee letter that is issued under this Act.’’; and (iii) by inserting after subparagraph ( J ) the fol- lowing: ‘‘( K ) V iolation of section 202(d) of this Act (12 U.S.C. 1708(d)). ‘‘(L) Use of ‘Federal Housing Administration’, ‘Depart- ment of Housing and Urban Development’, ‘ G overnment National Mortgage Association’, ‘Ginnie Mae’, the acronyms ‘HUD’, ‘FHA’, or ‘GNMA’, or any official seal or logo of the Department of Housing and Urban Development, except as authori z ed by the Secretary.’’; 12USC 1 7 1 5unote.
