---
kind: "section"
citation: "24 C.F.R. § 81.83"
title: "24"
number: "81.83"
heading: "Civil money penalties."
url: "https://uscodex.org/cfr/24/81.83"
---

# §81.83. Civil money penalties.

- (a) **Imposition.** The Secretary may impose a civil money penalty on a GSE that has failed:
  - (1) To submit, within the time prescribed in [§ 81.22](/cfr/24/81.22.md), a housing plan that substantially complies with [12 U.S.C. 4566(c)](/usc/12/4566.md?p=c), as implemented by [§ 81.22](/cfr/24/81.22.md);
  - (2) To make a good-faith effort to comply with a housing plan submitted and approved by the Secretary; or
  - (3) To submit any of the information required under sections 309(m) or (n) of the Fannie Mae Charter Act, sections 307(e) or (f) of the Freddie Mac Act, or [subpart E](/cfr/24/subpartE.md) of this part.
- (b) **Amount of penalty.** The amount of the penalty shall not exceed:
  - (1) For any failure described in [paragraph (a)(1)](#a-1) of this section, $35,000 for each day that the failure occurs; and
  - (2) For any failure described in paragraphs [(a)(2)](#a-2) or [(a)(3)](#a-3) of this section, $16,000 for each day that the failure occurs.
- (c) **Factors in determining amount of penalty.** In determining the amount of a penalty under this section, the Secretary shall consider the factors in [12 U.S.C. 4585(c)(2)](/usc/12/4585.md?p=c-2) including the public interest.
- (d) **Procedures—**
  - (1) **Notice of Intent.** The Secretary shall notify the GSE in writing of the Secretary's determination to impose a civil money penalty by issuing a Notice of Intent to Impose Civil Money Penalties (“Notice of Intent”). The Notice of Intent shall provide:
    - (i) A concise statement of the facts constituting the alleged misconduct;
    - (ii) The amount of the civil money penalty;
    - (iii) Notice of the GSE's right to a hearing on the record;
    - (iv) The procedures to follow to obtain a hearing;
    - (v) A statement of the consequences of failing to request a hearing; and
    - (vi) The date the penalty shall be due unless the GSE contests the matter.
  - (2) To appeal the Secretary's decision to impose a civil money penalty, the GSE shall, within 20 days of service of the Notice of Intent, file a written Answer with the Chief Docket Clerk, Office of Hearings and Appeals, Department of Housing and Urban Development, at the address provided in the Notice of Intent.
  - (3) **Administrative law judge.** A HUD ALJ shall preside over any hearing conducted under this section, in accordance with [§ 81.84](/cfr/24/81.84.md) and, to the extent the provisions are not inconsistent with any of the procedures in this part or FHEFSSA, with [24 CFR part 26](/cfr/24/part26.md), subpart B.
  - (4) **Issuance of order.** If the GSE consents to the issuance of the order or the ALJ finds, on the hearing record, that a preponderance of the evidence establishes the conduct specified in the notice of charges, the ALJ may issue an order imposing a civil money penalty.
  - (5) **Consultation with the Director.** In the Secretary's discretion, the Director of OFHEO may be requested to review any Notice of Intent, determination, order, or interlocutory ruling arising from a hearing.
- (e) **Action to collect penalty.** The Secretary may request the Attorney General of the United States to bring an action to collect the penalty, in accordance with [12 U.S.C. 4585(d)](/usc/12/4585.md?p=d). Interest on, and other charges for, any unpaid penalty may be assessed in accordance with [31 U.S.C. 3717](/usc/31/3717.md).
- (f) **Settlement by Secretary.** The Secretary may compromise, modify, or remit any civil money penalty that may be, or has been, imposed under this section.

## Notes

### Amendments

[60 FR 61888, Dec. 1, 1995, as amended at 61 FR 50218, Sept. 24, 1996; 68 FR 12788, Mar. 17, 2003; 72 FR 5588, Feb. 6, 2007; 87 FR 8197, Feb. 14, 2022]

### Authority

Authority: 12 U.S.C. 1451 et seq., 1716-1723h, and 4501-4641; 28 U.S.C. 2461 note; 42 U.S.C. 3535(d) and 3601-3619.

### Source

Source: 60 FR 61888, Dec. 1, 1995, unless otherwise noted.

### Amendments

[60 FR 61888, Dec. 1, 1995, as amended at 61 FR 50218, Sept. 24, 1996; 68 FR 12788, Mar. 17, 2003; 72 FR 5588, Feb. 6, 2007; 87 FR 8197, Feb. 14, 2022]