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 addi-
tion to the Committee on the Judiciary, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions 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 pro-
grams, Veteran Administration, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fixing Housing Access 
Act of 2018’’. 
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TITLE I—FALSE CLAIMS 
SEC. 101. AMENDMENTS TO THE FALSE CLAIMS ACT. 
(a) FALSE CLAIMS PROCEDURE.—Section 3731(b) of 
title 31, United States Code, is amended— 
(1) by striking subsection (b) and inserting the 
following: 
‘‘(b) A civil action under section 3730 may not be 
brought— 
‘‘(1) except as provided in paragraph (2), after 
the later of more than— 
‘‘(A) 6 years after the date on which the 
violation of section 3729 is committed; or 
‘‘(B) 3 years after the date when facts ma-
terial to the right of action are known or rea-
sonably should have been known by the official 
of the United States charged with responsibility 
to act in the circumstances, but in no event 
more than 10 years after the date on which the 
violation is committed; or 
‘‘(2) in the case of any claim subject to section 
3729(e), more than— 
‘‘(A) 6 years after the date on which the 
violation of section 3729 is committed, if such 
violation occurs in connection with obtaining 
government insurance or guaranty of a loan or 
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submitting periodic certifications regarding the 
status of the person or single asset entity; or 
‘‘(B) 3 years after the date on which the 
violation of section 3729 is committed, if such 
violation occurs in connection with obtaining 
the payment of a claim for government insur-
ance or guaranty benefits in respect of a loan, 
and, in each case, without explicit written con-
sent from the Secretary responsible for the gov-
ernment guaranty or insurance program.’’; and 
(2) by striking subsection (d) and inserting the 
following: 
‘‘(d) In any action brought under section 3730, the 
United States shall be required to prove all essential ele-
ments of the cause of action, including damages, with re-
spect to each false claim, by a preponderance of the evi-
dence.’’. 
(b) FALSE CLAIMS.—Section 3729 of title 31, United 
States Codes, is amended by adding at the end the fol-
lowing— 
‘‘(e) CLAIMS.—In the case of any claim arising from 
the Indian Home Loan Guarantee Program, the Native 
Hawaiian Housing Loan Guarantee Program, and any 
program administered by the Federal Housing Adminis-
tration, the Department of Veterans Affairs, or the Rural 
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Housing Service of the Department of Agriculture, or any 
successor thereto, the following apply notwithstanding any 
other provision of this chapter: 
‘‘(1) If the violation of section 3729 is based on 
a false or fraudulent record or statement in connec-
tion with obtaining government insurance or guar-
anty of a loan, the violation of this section is deemed 
to have been committed as of the effective date of 
such insurance or guaranty. 
‘‘(2) If the violation of section 3729 is based on 
a false or fraudulent record or statement in connec-
tion with obtaining either government insurance or 
guaranty of a loan or submitting periodic certifi-
cations regarding the status of the person or single 
asset entity, for purposes of such a claim, the term 
‘damages’ shall mean the net amount of actual 
losses after subtracting any net liquidation proceeds 
received by the Government in disposition of the 
property giving rise to such damages. 
‘‘(3) If the violation of section 3729 is based on 
a false or fraudulent record or statement in connec-
tion with obtaining either government insurance or 
guaranty of a loan or payment of a claim in respect 
of such insurance or guaranty, the Government will 
not be considered to have sustained damages be-
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cause of such false or fraudulent record, statement, 
or claim to the extent that either the loan would 
have been eligible for insurance or guaranty or the 
claim would have been eligible for payment under 
the applicable government program, even if a false 
or fraudulent record or statement had not been 
made or even if the loan would have been eligible if 
overpaid. 
‘‘(4) A false or fraudulent record or statement 
is material to a false or fraudulent claim only if the 
submission of such record or statement or its related 
information to the Government— 
‘‘(A) is expressly required by the Govern-
ment program requirements, including loan 
level certification, implied certifications, and 
sub-regulatory guidance, as part of the eligi-
bility criteria for the Government’s issuance of 
the applicable insurance or guaranty policy; 
‘‘(B) is made with respect to an individual 
loan, including loan level certification; and 
‘‘(C) influenced the Government’s insur-
ance or guaranty, or payment of money or 
property, based on the proper application of the 
applicable Government program requirements in 
connection with such individual claim.’’. 
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TITLE II—INCREASED HOUSING 
AND URBAN DEVELOPMENT 
CLARITY AND ENFORCEMENT 
SEC. 201. REPORT AND STUDY ON DEFECT TAXONOMY. 
The Secretary of Housing and Urban Development 
shall, not later than 90 days after the date of enactment, 
complete a study and report to the Committee on Finan-
cial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate on the authority and funding needed to ensure 
enforcement and educational and outreach effort regard-
ing the Single Family Housing Loan Quality Assessment 
Methodology (in this Act referred to as the ‘‘defect tax-
onomy’’). 
SEC. 202. GUIDANCE. 
The Secretary of Housing and Urban Development 
shall publish guidance to clarify the remedy and enforce-
ment procedures for mortgage defects related to the loan- 
level mortgagee and underwriter certifications on the 
HUD Addendum to Uniform Residential Loan Application 
and the Direct Endorsement Approval for a HUD/FHA– 
Insured Mortgage in accordance with the defect taxonomy. 
Such guidance shall include an effective date for such pro-
cedures to take effect within a reasonable amount of time 
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after publication, but not later than 6 months after the 
effective date of this legislation. 
SEC. 203. REPORT ON EFFECTS OF ACTIONS. 
Not later than 180 days after the issuance of guid-
ance under section 202, the Secretary of Housing and 
Urban Development shall complete a study and submit a 
report to the committees referred to in section 201 on the 
effects of any actions taken by the Secretary with regard 
to— 
(1) attracting private capital back to the Fed-
eral Housing Administration market; and 
(2) whether Single Family Housing Loan Qual-
ity Assessment Methodology adequately ensured the 
government has resources to prosecute and deter 
bad actors and protect consumers. 
SEC. 204. ADDITIONAL GUIDANCE. 
The Secretary of Housing and Urban Development 
shall publish guidance to ensure lenders are responsible 
for the taxonomy standards in effect at the time the stand-
ards were implemented by the Secretary. 
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TITLE 
III—AMENDMENTS 
TO 
THE 
FINANCIAL 
INSTITU-
TIONS REFORM, RECOVERY, 
AND ENFORCEMENT ACT OF 
1989 
SEC. 301. AMENDMENTS TO THE FINANCIAL INSTITUTIONS 
REFORM, RECOVERY, AND ENFORCEMENT 
ACT OF 1989. 
Section 951(h) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1833a(h)) is amended— 
(1) by striking ‘‘A civil action’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a civil action’’; 
(2) by moving paragraph (1), as added by sub-
section (a), 2 ems to the right; and 
(3) by adding at the end the following: 
‘‘(2) EXCEPTION.—In the case of any action 
under this section arising from the Indian Home 
Loan Guarantee Program and the Native Hawaiian 
Housing Loan Guarantee Program or any program 
pertaining to residential mortgage loans insured or 
guaranteed by the Federal Housing Administration, 
the Department of Veterans Affairs or the Rural 
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