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Chapter 17. VA Sanctions Against Program Participants
Overview Topic 1. Program Participants Topic 2. False Lender Certification Topic 3. Withdrawal of Automatic Authority Topic 4. Withdrawal of LAPP Authority Topic 5. Debarment and Suspension Topic 6. Limited Denial of Participation (LDP) Topic 7. Unfair Contract Provisions or Marketing Practices Topic 8. Violations of Equal Housing Opportunity Laws Index
Overview
Introduction
VA is authorized to impose sanctions against persons or entities who take actions which are detrimental to the VA loan guaranty program. The type and severity of the sanction imposed is based on
the type of participant (for example, lender, builder, management broker, etc.), and
the nature of the actions (for example., fraud, significant deficiencies in performance, ongoing disregard for VA requirements, and so on).
Sanctions may be imposed in the form of
civil money penalties, and/or
the participant’s full or partial exclusion from participation in the VA loan guaranty program for a certain period of time.
Appeal Rights
VA provides appeal rights to all program participants against whom sanctions are imposed. The notice informing the participant that sanctions will be or are imposed explains what the participant must do to appeal VA’s decision.