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b. Procedures (11/18/2020)
The following is a brief summary of the procedures of the MRB under 24 CFR Parts 25, 26, and 30.
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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE E. Enforcement
4. Mortgagee Review Board Actions and Sanctions
i. Notice of Violation
The MRB will send the Mortgagee an NOV detailing the Mortgagee’s alleged violations.
(A) Mortgagee Response
The Mortgagee may provide the MRB with a written response within 30 Days of receiving the NOV. The MRB will consider the Mortgagee’s response, as well as other relevant material, when deciding which administrative action to take, if any, and whether to seek civil money penalties against the Mortgagee.
If the Mortgagee fails to respond to the NOV within 30 Days, the MRB will make a final determination based upon the information available to it.
(B) Preservation of Documents
Upon receipt of the NOV, the Mortgagee is required to preserve and maintain all documents and data, including electronically stored data, within the Mortgagee’s possession or control that may relate to the violations alleged in the NOV.
ii. Notice of Administrative Action
If the MRB decides to take administrative action against the Mortgagee, the MRB will issue a Notice of Administrative Action to the Mortgagee describing the nature and duration of the action and setting forth the basis for the action being taken.
iii. Appeal
(A) Request for Hearing
Mortgagees may appeal a probation, suspension or withdrawal action by the MRB by submitting a written request for a hearing within 30 Days of receipt of the Notice of Administrative Action. The Mortgagee’s request for a hearing must specifically respond to the violations set forth in the Notice of Administrative Action.
(B) Hearing Process and Procedures
Hearings are conducted before an impartial Administrative Law Judge in accordance with the procedures set forth in 24 CFR Part 26, Subpart B.
(C) Waiver of Appeal
If a Mortgagee fails to request a hearing within the 30-Day period, the MRB action becomes final.
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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE E. Enforcement
5. Actions and Sanctions Against Individuals and Other Program Participants
iv. Public Notice
(A) Federal Register
Pursuant to the National Housing Act (12 U.S.C. § 1708(c)(5)), HUD publishes a description of and the cause for each administrative action against an FHA-approved Mortgagee in the Federal Register. The Federal Register notices include details on all MRB actions, including letters of reprimand, probations, suspensions, withdrawals of FHA approval, settlement agreements, and civil money penalties.
(B) Agency Notifications
If the MRB suspends or withdraws the approval of a Mortgagee, FHA is required to notify certain state, federal, and other interested agencies that interact with the Mortgagee, including:
• Conference of State Bank Supervisors/NMLS
• CFPB
• Fannie Mae
• Federal Deposit Insurance Corporation (FDIC)
• Federal Reserve
• Freddie Mac
• Ginnie Mae
• National Credit Union Administration (NCUA)
• Office of the Comptroller of the Currency
• U.S. Department of Agriculture Rural Development Housing Authority
• U.S. Department of Veterans Affairs