§ 30.60 Dealers or sponsored third-party originators.

(a) 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: (1) Falsifying information on an application for dealer approval or reapproval submitted to a lender; (2) Falsifying statements on a HUD credit application, improvement contract, note, security instrument, completion certificate, or other loan document; (3) Failing to sign a credit application if the dealer or sponsored third-party originator assisted the borrower in completing the application; (4) Falsely certifying to a lender that the loan proceeds have been or will be spent on eligible improvements; (5) Falsely certifying to a lender that the property improvements have been completed; (6) 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; (7) 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. (b) Continuing violation. Each day that a violation continues shall constitute a separate violation. (c) 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.