---
kind: "section"
citation: "12 U.S.C. § 5113"
title: "12"
title_heading: "Banks and Banking"
number: "5113"
heading: "Enforcement by the Bureau"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5113"
units:
  - "Chapter 51 — Secure and Fair Enforcement for Mortgage Licensing"
---

# §5113. Enforcement by the Bureau

- (a) **Summons authority—** The [Director](/usc/12/5102.md?p=10) may—
  - (1) examine any books, papers, records, or other data of any [loan originator](/usc/12/5102.md?p=4-A) operating in any [State](/usc/12/5102.md?p=11) which is subject to a licensing system established by the [Director](/usc/12/5102.md?p=10) under [section 5107 of this title](/usc/12/5107.md); and
  - (2) summon any [loan originator](/usc/12/5102.md?p=4-A) referred to in [paragraph (1)](#a-1) or any [person](/usc/12/5481.md?p=19) having possession, custody, or care of the reports and records relating to such [loan originator](/usc/12/5102.md?p=4-A), to appear before the [Director](/usc/12/5102.md?p=10) or any delegate of the [Director](/usc/12/5102.md?p=10) at a time and place named in the summons and to produce such books, papers, records, or other data, and to give testimony, under oath, as may be relevant or material to an investigation of such [loan originator](/usc/12/5102.md?p=4-A) for compliance with the requirements of this chapter.
- (b) **Examination authority—**
  - (1) **In general—** If the [Director](/usc/12/5102.md?p=10) establishes a licensing system under [section 5107 of this title](/usc/12/5107.md) for any [State](/usc/12/5102.md?p=11), the [Director](/usc/12/5102.md?p=10) shall appoint examiners for the purposes of administering such section.
  - (2) **Power to examine—** Any examiner appointed under [paragraph (1)](#b-1) shall have power, on behalf of the [Director](/usc/12/5102.md?p=10), to make any examination of any [loan originator](/usc/12/5102.md?p=4-A) operating in any [State](/usc/12/5102.md?p=11) which is subject to a licensing system established by the [Director](/usc/12/5102.md?p=10) under [section 5107 of this title](/usc/12/5107.md) whenever the [Director](/usc/12/5102.md?p=10) determines an examination of any [loan originator](/usc/12/5102.md?p=4-A) is necessary to determine the compliance by the originator with this chapter.
  - (3) **Report of examination—** Each examiner appointed under [paragraph (1)](#b-1) shall make a full and detailed report of examination of any [loan originator](/usc/12/5102.md?p=4-A) examined to the [Director](/usc/12/5102.md?p=10).
  - (4) **Administration of oaths and affirmations; evidence—** In connection with examinations of [loan originators](/usc/12/5102.md?p=4-A) operating in any [State](/usc/12/5102.md?p=11) which is subject to a licensing system established by the [Director](/usc/12/5102.md?p=10) under [section 5107 of this title](/usc/12/5107.md), or with other types of investigations to determine compliance with applicable law and regulations, the [Director](/usc/12/5102.md?p=10) and examiners appointed by the [Director](/usc/12/5102.md?p=10) may administer oaths and affirmations and examine and take and preserve testimony under oath as to any matter in respect to the affairs of any such [loan originator](/usc/12/5102.md?p=4-A).
  - (5) **Assessments—** The cost of conducting any examination of any [loan originator](/usc/12/5102.md?p=4-A) operating in any [State](/usc/12/5102.md?p=11) which is subject to a licensing system established by the [Director](/usc/12/5102.md?p=10) under [section 5107 of this title](/usc/12/5107.md) shall be assessed by the [Director](/usc/12/5102.md?p=10) against the [loan originator](/usc/12/5102.md?p=4-A) to meet the [Secretary](/usc/12/1715z–22a.md?p=4)’s[^1] expenses in carrying out such examination.
- (c) **Cease and desist proceeding—**
  - (1) **Authority of Director—** If the [Director](/usc/12/5102.md?p=10) finds, after notice and opportunity for hearing, that any [person](/usc/12/5481.md?p=19) is violating, has violated, or is about to violate any provision of this chapter, or any regulation thereunder, with respect to a [State](/usc/12/5102.md?p=11) which is subject to a licensing system established by the [Director](/usc/12/5102.md?p=10) under [section 5107 of this title](/usc/12/5107.md), the [Director](/usc/12/5102.md?p=10) may publish such findings and enter an order requiring such [person](/usc/12/5481.md?p=19), and any other [person](/usc/12/5481.md?p=19) that is, was, or would be a cause of the violation, due to an act or omission the [person](/usc/12/5481.md?p=19) knew or should have known would contribute to such violation, to cease and desist from committing or causing such violation and any future violation of the same provision, rule, or regulation. Such order may, in addition to requiring a [person](/usc/12/5481.md?p=19) to cease and desist from committing or causing a violation, require such [person](/usc/12/5481.md?p=19) to comply, or to take steps to effect compliance, with such provision or regulation, upon such terms and conditions and within such time as the [Director](/usc/12/5102.md?p=10) may specify in such order. Any such order may, as the [Director](/usc/12/5102.md?p=10) deems appropriate, require future compliance or steps to effect future compliance, either permanently or for such period of time as the [Director](/usc/12/5102.md?p=10) may specify, with such provision or regulation with respect to any [loan originator](/usc/12/5102.md?p=4-A).
  - (2) **Hearing—** The notice instituting proceedings pursuant to [paragraph (1)](#c-1) shall fix a hearing date not earlier than 30 days nor later than 60 days after service of the notice unless an earlier or a later date is set by the [Director](/usc/12/5102.md?p=10) with the consent of any respondent so served.
  - (3) **Temporary order—** Whenever the [Director](/usc/12/5102.md?p=10) determines that the alleged violation or threatened violation specified in the notice instituting proceedings pursuant to [paragraph (1)](#c-1), or the continuation thereof, is likely to result in significant dissipation or conversion of assets, significant harm to [consumers](/usc/12/5481.md?p=4), or substantial harm to the public interest prior to the completion of the proceedings, the [Director](/usc/12/5102.md?p=10) may enter a temporary order requiring the respondent to cease and desist from the violation or threatened violation and to take such action to prevent the violation or threatened violation and to prevent dissipation or conversion of assets, significant harm to [consumers](/usc/12/5481.md?p=4), or substantial harm to the public interest as the [Director](/usc/12/5102.md?p=10) deems appropriate pending completion of such proceedings. Such an order shall be entered only after notice and opportunity for a hearing, unless the [Director](/usc/12/5102.md?p=10) determines that notice and hearing prior to entry would be impracticable or contrary to the public interest. A temporary order shall become effective upon service upon the respondent and, unless set aside, limited, or suspended by the [Director](/usc/12/5102.md?p=10) or a court of competent jurisdiction, shall remain effective and enforceable pending the completion of the proceedings.
  - (4) **Review of temporary orders—**
    - (A) **Review by Director—** At any time after the respondent has been served with a temporary cease and desist order pursuant to [paragraph (3)](#c-3), the respondent may apply to the [Director](/usc/12/5102.md?p=10) to have the order set aside, limited, or suspended. If the respondent has been served with a temporary cease and desist order entered without a prior hearing before the [Director](/usc/12/5102.md?p=10), the respondent may, within 10 days after the date on which the order was served, request a hearing on such application and the [Director](/usc/12/5102.md?p=10) shall hold a hearing and render a decision on such application at the earliest possible time.
    - (B) **Judicial review—** Within—
      - (i) 10 days after the date the respondent was served with a temporary cease and desist order entered with a prior hearing before the [Director](/usc/12/5102.md?p=10); or
      - (ii) 10 days after the [Director](/usc/12/5102.md?p=10) renders a decision on an application and hearing under [paragraph (1)](#c-1), with respect to any temporary cease and desist order entered without a prior hearing before the [Director](/usc/12/5102.md?p=10),

      the respondent may apply to the United States district court for the district in which the respondent resides or has its principal place of business, or for the District of Columbia, for an order setting aside, limiting, or suspending the effectiveness or enforcement of the order, and the court shall have jurisdiction to enter such an order. A respondent served with a temporary cease and desist order entered without a prior hearing before the [Director](/usc/12/5102.md?p=10) may not apply to the court except after hearing and decision by the [Director](/usc/12/5102.md?p=10) on the respondent’s application under [subparagraph (A)](#c-4-A).

    - (C) **No automatic stay of temporary order—** The commencement of proceedings under [subparagraph (B)](#c-4-B) shall not, unless specifically ordered by the court, operate as a stay of the [Secretary](/usc/12/1715z–22a.md?p=4)’s[^1] order.
  - (5) **Authority of the Director to prohibit persons from serving as loan originators—** In any cease and desist proceeding under [paragraph (1)](#c-1), the [Director](/usc/12/5102.md?p=10) may issue an order to prohibit, conditionally or unconditionally, and permanently or for such period of time as the [Director](/usc/12/5102.md?p=10) shall determine, any [person](/usc/12/5481.md?p=19) who has violated this chapter or regulations thereunder, from acting as a [loan originator](/usc/12/5102.md?p=4-A) if the conduct of that [person](/usc/12/5481.md?p=19) demonstrates unfitness to serve as a [loan originator](/usc/12/5102.md?p=4-A).
- (d) **Authority of the Director to assess money penalties—**
  - (1) **In general—** The [Director](/usc/12/5102.md?p=10) may impose a civil penalty on a [loan originator](/usc/12/5102.md?p=4-A) operating in any [State](/usc/12/5102.md?p=11) which is subject to a licensing system established by the [Director](/usc/12/5102.md?p=10) under [section 5107 of this title](/usc/12/5107.md), if the [Director](/usc/12/5102.md?p=10) finds, on the record after notice and opportunity for hearing, that such [loan originator](/usc/12/5102.md?p=4-A) has violated or failed to comply with any requirement of this chapter or any regulation prescribed by the [Director](/usc/12/5102.md?p=10) under this chapter or order issued under [subsection (c)](#c).
  - (2) **Maximum amount of penalty—** The maximum amount of penalty for each act or omission described in [paragraph (1)](#d-1) shall be $25,000.

## Footnotes

[^1]: So in original. Probably should be “Director’s”.

## Source credit

(Pub. L. 110–289, div. A, title V, § 1514, July 30, 2008, 122 Stat. 2821; Pub. L. 111–203, title X, § 1100(3), (9), July 21, 2010, 124 Stat. 2106, 2107.)

## Notes

### Editorial Notes

### Amendments

Pub. L. 111–203 substituted “by the Bureau” for “under HUD backup licensing system” in section catchline and “Director” for “Secretary” wherever appearing in text.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.