§30.60. Dealers or sponsored third-party originators.
24 C.F.R. § 30.60
General. The Assistant Secretary for Housing-Federal Housing Commissioner, or his or her designee, may initiate a civil money penalty action against any dealer or sponsored third-party originator that violates section 2(b)(7) of the National Housing Act (12 U.S.C. 1703). Such violations include, but are not limited to:
Falsifying information on an application for dealer approval or reapproval submitted to a lender;
Falsifying statements on a HUD credit application, improvement contract, note, security instrument, completion certificate, or other loan document;
Failing to sign a credit application if the dealer or sponsored third-party originator assisted the borrower in completing the application;
Falsely certifying to a lender that the loan proceeds have been or will be spent on eligible improvements;
Falsely certifying to a lender that the property improvements have been completed;
Falsely certifying that a borrower has not been given or promised any cash payment, rebate, cash bonus, or anything of more than nominal value as an inducement to enter into a loan transaction;
Making a false representation to a lender with respect to the creditworthiness of a borrower or the eligibility of the improvements for which a loan is sought.
Continuing violation. Each day that a violation continues shall constitute a separate violation.
Amount of penalty. The maximum penalty is $12,567 for each violation, up to a limit for any particular person of $2,513,215 during any one-year period.
Notes, amendments, and revision history
Amendments
[61 FR 50215, Sept. 24, 1996, as amended at 68 FR 12788, Mar. 17, 2003; 72 FR 5588, Feb. 6, 2007; 77 FR 51467, Aug. 24, 2012; 78 FR 4059, Jan. 18, 2013; 81 FR 38935, June 15, 2016; 82 FR 24524, May 30, 2017; 83 FR 32793, July 16, 2018; 84 FR 9453, Mar. 15, 2019; 85 FR 13044, Mar. 6, 2020; 86 FR 14373, Mar. 16, 2021; 87 FR 24420, Apr. 26, 2022; 88 FR 9748, Feb. 15, 2023; 89 FR 13616, Feb. 23, 2024;90 FR 24747, June 12, 2025]
Authority
Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C. 1437z-1 and 3535(d).
Source
Source: 61 FR 50215, Sept. 24, 1996, unless otherwise noted.
Amendments
[61 FR 50215, Sept. 24, 1996, as amended at 68 FR 12788, Mar. 17, 2003; 72 FR 5588, Feb. 6, 2007; 77 FR 51467, Aug. 24, 2012; 78 FR 4059, Jan. 18, 2013; 81 FR 38935, June 15, 2016; 82 FR 24524, May 30, 2017; 83 FR 32793, July 16, 2018; 84 FR 9453, Mar. 15, 2019; 85 FR 13044, Mar. 6, 2020; 86 FR 14373, Mar. 16, 2021; 87 FR 24420, Apr. 26, 2022; 88 FR 9748, Feb. 15, 2023; 89 FR 13616, Feb. 23, 2024;90 FR 24747, June 12, 2025]