H. R. 3221—168 
SEC. 1514. ENFORCEMENT UNDER HUD BACKUP LICENSING SYSTEM. 
(a) SUMMONS AUTHORITY.—The Secretary may— 
(1) examine any books, papers, records, or other data of 
any loan originator operating in any State which is subject 
to a licensing system established by the Secretary under section 
1508; and 
(2) summon any loan originator referred to in paragraph 
(1) or any person having possession, custody, or care of the 
reports and records relating to such loan originator, to appear 
before the Secretary or any delegate of the Secretary 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 for compliance with the requirements 
of this title. 
(b) EXAMINATION AUTHORITY.— 
(1) IN GENERAL.—If the Secretary establishes a licensing 
system under section 1508 for any State, the Secretary shall 
appoint examiners for the purposes of administering such sec-
tion. 
(2) POWER TO EXAMINE.—Any examiner appointed under 
paragraph (1) shall have power, on behalf of the Secretary, 
to make any examination of any loan originator operating in 
any State which is subject to a licensing system established 
by the Secretary under section 1508 whenever the Secretary 
determines an examination of any loan originator is necessary 
to determine the compliance by the originator with this title. 
(3) REPORT
OF
EXAMINATION.—Each examiner appointed 
under paragraph (1) shall make a full and detailed report 
of examination of any loan originator examined to the Secretary. 
(4) ADMINISTRATION
OF
OATHS
AND
AFFIRMATIONS; EVI-
DENCE.—In connection with examinations of loan originators 
operating in any State which is subject to a licensing system 
established by the Secretary under section 1508, or with other 
types of investigations to determine compliance with applicable 
law and regulations, the Secretary and examiners appointed 
by the Secretary 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. 
(5) ASSESSMENTS.—The cost of conducting any examination 
of any loan originator operating in any State which is subject 
to a licensing system established by the Secretary under section 
1508 shall be assessed by the Secretary against the loan origi-
nator to meet the Secretary’s expenses in carrying out such 
examination. 
(c) CEASE AND DESIST PROCEEDING.— 
(1) AUTHORITY OF SECRETARY.—If the Secretary finds, after 
notice and opportunity for hearing, that any person is violating, 
has violated, or is about to violate any provision of this title, 
or any regulation thereunder, with respect to a State which 
is subject to a licensing system established by the Secretary 
under section 1508, the Secretary may publish such findings 
and enter an order requiring such person, and any other person 
that is, was, or would be a cause of the violation, due to 
an act or omission the person knew or should have known 
would contribute to such violation, to cease and desist from 
committing or causing such violation and any future violation
H. R. 3221—169 
of the same provision, rule, or regulation. Such order may, 
in addition to requiring a person to cease and desist from 
committing or causing a violation, require such person to 
comply, or to take steps to effect compliance, with such provi-
sion or regulation, upon such terms and conditions and within 
such time as the Secretary may specify in such order. Any 
such order may, as the Secretary deems appropriate, require 
future compliance or steps to effect future compliance, either 
permanently or for such period of time as the Secretary may 
specify, with such provision or regulation with respect to any 
loan originator. 
(2) HEARING.—The notice instituting proceedings pursuant 
to paragraph (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 Secretary with 
the consent of any respondent so served. 
(3) TEMPORARY
ORDER.—Whenever the Secretary deter-
mines that the alleged violation or threatened violation speci-
fied in the notice instituting proceedings pursuant to paragraph 
(1), or the continuation thereof, is likely to result in significant 
dissipation or conversion of assets, significant harm to con-
sumers, or substantial harm to the public interest prior to 
the completion of the proceedings, the Secretary 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, or substantial harm to the public interest as 
the Secretary deems appropriate pending completion of such 
proceedings. Such an order shall be entered only after notice 
and opportunity for a hearing, unless the Secretary 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 Secretary 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
SECRETARY.—At any time after the 
respondent has been served with a temporary cease and 
desist order pursuant to paragraph (3), the respondent 
may apply to the Secretary 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 Secretary, the respondent may, 
within 10 days after the date on which the order was 
served, request a hearing on such application and the Sec-
retary 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 Secretary; or 
(ii) 10 days after the Secretary renders a decision 
on an application and hearing under paragraph (1), 
with respect to any temporary cease and desist order 
entered without a prior hearing before the Secretary,
H. R. 3221—170 
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 sus-
pending 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 Secretary 
may not apply to the court except after hearing and decision 
by the Secretary on the respondent’s application under 
subparagraph (A). 
(C) NO AUTOMATIC STAY OF TEMPORARY ORDER.—The 
commencement of proceedings under subparagraph (B) 
shall not, unless specifically ordered by the court, operate 
as a stay of the Secretary’s order. 
(5) AUTHORITY OF THE SECRETARY TO PROHIBIT PERSONS 
FROM SERVING AS LOAN ORIGINATORS.—In any cease and desist 
proceeding under paragraph (1), the Secretary may issue an 
order to prohibit, conditionally or unconditionally, and perma-
nently or for such period of time as the Secretary shall deter-
mine, any person who has violated this title or regulations 
thereunder, from acting as a loan originator if the conduct 
of that person demonstrates unfitness to serve as a loan origi-
nator. 
(d) AUTHORITY
OF
THE SECRETARY TO ASSESS MONEY PEN-
ALTIES.— 
(1) IN GENERAL.—The Secretary may impose a civil penalty 
on a loan originator operating in any State which is subject 
to a licensing system established by the Secretary under section 
1508, if the Secretary finds, on the record after notice and 
opportunity for hearing, that such loan originator has violated 
or failed to comply with any requirement of this title or any 
regulation prescribed by the Secretary under this title or order 
issued under subsection (c). 
(2) MAXIMUM AMOUNT OF PENALTY.—The maximum amount 
of penalty for each act or omission described in paragraph 
(1) shall be $25,000. 
SEC. 1515. STATE EXAMINATION AUTHORITY. 
In addition to any authority allowed under State law a State 
licensing agency shall have the authority to conduct investigations 
and examinations as follows: 
(1) For the purposes of investigating violations or com-
plaints arising under this title, or for the purposes of examina-
tion, the State licensing agency may review, investigate, or 
examine any loan originator licensed or required to be licensed 
under this title, as often as necessary in order to carry out 
the purposes of this title. 
(2) Each such loan originator shall make available upon 
request to the State licensing agency the books and records 
relating to the operations of such originator. The State licensing 
agency may have access to such books and records and inter-
view the officers, principals, loan originators, employees, inde-
pendent contractors, agents, and customers of the licensee con-
cerning their business. 
(3) The authority of this section shall remain in effect, 
whether such a loan originator acts or claims to act under
H. R. 3221—171 
any licensing or registration law of such State, or claims to 
act without such authority. 
(4) No person subject to investigation or examination under 
this section may knowingly withhold, abstract, remove, muti-
late, destroy, or secrete any books, records, computer records, 
or other information. 
SEC. 1516. REPORTS AND RECOMMENDATIONS TO CONGRESS. 
(a) ANNUAL REPORTS.—Not later than 1 year after the date 
of enactment of this title, and annually thereafter, the Secretary 
shall submit a report to Congress on the effectiveness of the provi-
sions of this title, including legislative recommendations, if any, 
for strengthening consumer protections, enhancing examination 
standards, streamlining communication between all stakeholders 
involved in residential mortgage loan origination and processing, 
and establishing performance based bonding requirements for mort-
gage originators or institutions that employ such brokers. 
(b) LEGISLATIVE RECOMMENDATIONS.—Not later than 6 months 
after the date of enactment of this title, the Secretary shall make 
recommendations to Congress on legislative reforms to the Real 
Estate Settlement Procedures Act of 1974, that the Secretary deems 
appropriate to promote more transparent disclosures, allowing con-
sumers to better shop and compare mortgage loan terms and settle-
ment costs. 
SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES. 
(a) STUDY REQUIRED.—The Secretary shall conduct an extensive 
study of the root causes of default and foreclosure of home loans, 
using as much empirical data as is available. 
(b) PRELIMINARY REPORT
TO CONGRESS.—Not later than 6 
months after the date of enactment of this title, the Secretary 
shall submit to Congress a preliminary report regarding the study 
required by this section. 
(c) FINAL REPORT TO CONGRESS.—Not later than 12 months 
after the date of enactment of this title, the Secretary shall submit 
to Congress a final report regarding the results of the study required 
by this section, which shall include any recommended legislation 
relating to the study, and recommendations for best practices and 
for a process to provide targeted assistance to populations with 
the highest risk of potential default or foreclosure. 
TITLE VI—MISCELLANEOUS 
SEC. 1601. STUDY AND REPORTS ON GUARANTEE FEES. 
(a) ONGOING STUDY OF FEES.—The Director shall conduct an 
ongoing study of fees charged by enterprises for guaranteeing a 
mortgage. 
(b) COLLECTION OF DATA.—The Director shall, by regulation 
or order, establish procedures for the collection of data from enter-
prises for purposes of this subsection, including the format and 
the process for collection of such data. 
(c) REPORTS TO CONGRESS.—The Director shall annually submit 
a report to Congress on the results of the study conducted under 
subsection (a), based on the aggregated data collected under sub-
section (a) for the subject year, regarding the amount of such 
fees and the criteria used by the enterprises to determine such 
fees.