I 

115TH CONGRESS 

2D SESSION H. R. 5993 

To amend title 31, United States Code, to provide for certain limitations 

and clarifications on false claims and civil actions related to Federal 

Housing Administration programs, Veteran Administration, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 1, 2018 

Mr. GOTTHEIMER (for himself and Mr. ZELDIN) introduced the following bill; 

which was referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 31, United States Code, to provide for certain 

limitations and clarifications on false claims and civil 

actions related to Federal Housing Administration programs, Veteran Administration, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fixing Housing Access 

5 Act of 2018’’. 


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1 TITLE I—FALSE CLAIMS 

2 SEC. 101. AMENDMENTS TO THE FALSE CLAIMS ACT. 

3 (a) FALSE CLAIMS PROCEDURE.—Section 3731(b) of 

4 title 31, United States Code, is amended— 

5 (1) by striking subsection (b) and inserting the 

6 following: 

7 ‘‘(b) A civil action under section 3730 may not be 

8 brought— 

9 ‘‘(1) except as provided in paragraph (2), after 

10 the later of more than— 

11 ‘‘(A) 6 years after the date on which the 

12 violation of section 3729 is committed; or 

13 ‘‘(B) 3 years after the date when facts ma14 terial to the right of action are known or rea15 sonably should have been known by the official 

16 of the United States charged with responsibility 

17 to act in the circumstances, but in no event 

18 more than 10 years after the date on which the 

19 violation is committed; or 

20 ‘‘(2) in the case of any claim subject to section 

21 3729(e), more than— 

22 ‘‘(A) 6 years after the date on which the 

23 violation of section 3729 is committed, if such 

24 violation occurs in connection with obtaining 

25 government insurance or guaranty of a loan or 


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1 submitting periodic certifications regarding the 

2 status of the person or single asset entity; or 

3 ‘‘(B) 3 years after the date on which the 

4 violation of section 3729 is committed, if such 

5 violation occurs in connection with obtaining 

6 the payment of a claim for government insur7 ance or guaranty benefits in respect of a loan, 

8 and, in each case, without explicit written con9 sent from the Secretary responsible for the gov10 ernment guaranty or insurance program.’’; and 

11 (2) by striking subsection (d) and inserting the 

12 following: 

13 ‘‘(d) In any action brought under section 3730, the 

14 United States shall be required to prove all essential ele15 ments of the cause of action, including damages, with re16 spect to each false claim, by a preponderance of the evi17 dence.’’. 

18 (b) FALSE CLAIMS.—Section 3729 of title 31, United 

19 States Codes, is amended by adding at the end the fol20 lowing— 

21 ‘‘(e) CLAIMS.—In the case of any claim arising from 

22 the Indian Home Loan Guarantee Program, the Native 

23 Hawaiian Housing Loan Guarantee Program, and any 

24 program administered by the Federal Housing Adminis25 tration, the Department of Veterans Affairs, or the Rural 


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1 Housing Service of the Department of Agriculture, or any 

2 successor thereto, the following apply notwithstanding any 

3 other provision of this chapter: 

4 ‘‘(1) If the violation of section 3729 is based on 

5 a false or fraudulent record or statement in connec6 tion with obtaining government insurance or guar7 anty of a loan, the violation of this section is deemed 

8 to have been committed as of the effective date of 

9 such insurance or guaranty. 

10 ‘‘(2) If the violation of section 3729 is based on 

11 a false or fraudulent record or statement in connec12 tion with obtaining either government insurance or 

13 guaranty of a loan or submitting periodic certifi14 cations regarding the status of the person or single 

15 asset entity, for purposes of such a claim, the term 

16 ‘damages’ shall mean the net amount of actual 

17 losses after subtracting any net liquidation proceeds 

18 received by the Government in disposition of the 

19 property giving rise to such damages. 

20 ‘‘(3) If the violation of section 3729 is based on 

21 a false or fraudulent record or statement in connec22 tion with obtaining either government insurance or 

23 guaranty of a loan or payment of a claim in respect 

24 of such insurance or guaranty, the Government will 

25 not be considered to have sustained damages beVerDate Sep 11 2014 20:56 Jun 05, 2018 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5993.IH H5993

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1 cause of such false or fraudulent record, statement, 

2 or claim to the extent that either the loan would 

3 have been eligible for insurance or guaranty or the 

4 claim would have been eligible for payment under 

5 the applicable government program, even if a false 

6 or fraudulent record or statement had not been 

7 made or even if the loan would have been eligible if 

8 overpaid. 

9 ‘‘(4) A false or fraudulent record or statement 

10 is material to a false or fraudulent claim only if the 

11 submission of such record or statement or its related 

12 information to the Government— 

13 ‘‘(A) is expressly required by the Govern14 ment program requirements, including loan 

15 level certification, implied certifications, and 

16 sub-regulatory guidance, as part of the eligi17 bility criteria for the Government’s issuance of 

18 the applicable insurance or guaranty policy; 

19 ‘‘(B) is made with respect to an individual 

20 loan, including loan level certification; and 

21 ‘‘(C) influenced the Government’s insur22 ance or guaranty, or payment of money or 

23 property, based on the proper application of the 

24 applicable Government program requirements in 

25 connection with such individual claim.’’. 


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1 TITLE II—INCREASED HOUSING 

2 AND URBAN DEVELOPMENT 

3 CLARITY AND ENFORCEMENT 

4 SEC. 201. REPORT AND STUDY ON DEFECT TAXONOMY. 

5 The Secretary of Housing and Urban Development 

6 shall, not later than 90 days after the date of enactment, 

7 complete a study and report to the Committee on Finan8 cial Services of the House of Representatives and the 

9 Committee on Banking, Housing, and Urban Affairs of 

10 the Senate on the authority and funding needed to ensure 

11 enforcement and educational and outreach effort regard12 ing the Single Family Housing Loan Quality Assessment 

13 Methodology (in this Act referred to as the ‘‘defect tax14 onomy’’). 

15 SEC. 202. GUIDANCE. 

16 The Secretary of Housing and Urban Development 

17 shall publish guidance to clarify the remedy and enforce18 ment procedures for mortgage defects related to the loan19 level mortgagee and underwriter certifications on the 

20 HUD Addendum to Uniform Residential Loan Application 

21 and the Direct Endorsement Approval for a HUD/FHA– 

22 Insured Mortgage in accordance with the defect taxonomy. 

23 Such guidance shall include an effective date for such pro24 cedures to take effect within a reasonable amount of time 


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1 after publication, but not later than 6 months after the 

2 effective date of this legislation. 

3 SEC. 203. REPORT ON EFFECTS OF ACTIONS. 

4 Not later than 180 days after the issuance of guid5 ance under section 202, the Secretary of Housing and 

6 Urban Development shall complete a study and submit a 

7 report to the committees referred to in section 201 on the 

8 effects of any actions taken by the Secretary with regard 

9 to— 

10 (1) attracting private capital back to the Fed11 eral Housing Administration market; and 

12 (2) whether Single Family Housing Loan Qual13 ity Assessment Methodology adequately ensured the 

14 government has resources to prosecute and deter 

15 bad actors and protect consumers. 

16 SEC. 204. ADDITIONAL GUIDANCE. 

17 The Secretary of Housing and Urban Development 

18 shall publish guidance to ensure lenders are responsible 

19 for the taxonomy standards in effect at the time the stand20 ards were implemented by the Secretary. 


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1 TITLE III—AMENDMENTS TO 

2 THE FINANCIAL INSTITU3 TIONS REFORM, RECOVERY, 

4 AND ENFORCEMENT ACT OF 

5 1989 

6 SEC. 301. AMENDMENTS TO THE FINANCIAL INSTITUTIONS 

7 REFORM, RECOVERY, AND ENFORCEMENT 

8 ACT OF 1989. 

9 Section 951(h) of the Financial Institutions Reform, 

10 Recovery, and Enforcement Act of 1989 (12 U.S.C. 

11 1833a(h)) is amended— 

12 (1) by striking ‘‘A civil action’’ and inserting 

13 the following: 

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), a civil action’’; 

16 (2) by moving paragraph (1), as added by sub17 section (a), 2 ems to the right; and 

18 (3) by adding at the end the following: 

19 ‘‘(2) EXCEPTION.—In the case of any action 

20 under this section arising from the Indian Home 

21 Loan Guarantee Program and the Native Hawaiian 

22 Housing Loan Guarantee Program or any program 

23 pertaining to residential mortgage loans insured or 

24 guaranteed by the Federal Housing Administration, 

25 the Department of Veterans Affairs or the Rural 


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1 Housing Service of the Department of Agriculture, 

2 or any successor thereto, the action may not be com3 menced more than— 

4 ‘‘(A) 6 years after the date on which the 

5 violation of this Act is committed, if such viola6 tion occurs in connection with obtaining govern7 ment insurance or guaranty of a loan; or 

8 ‘‘(B) 3 years after the date on which the 

9 violation of this Act is committed, if such viola10 tion occurs in connection with obtaining the 

11 payment of a claim for government insurance or 

12 guaranty benefits in respect of a loan, and, in 

13 each case, without explicit written consent from 

14 the Secretary responsible for the government 

15 guaranty or insurance program.’’. 

Æ 


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