HR 1106 RFS 
fitness to meet the responsibilities of an ap-
proved mortgagee; 
‘‘(C) subject to unresolved findings con-
tained in a Department of Housing and Urban 
Development or other governmental audit, in-
vestigation, or review; 
‘‘(D) engaged in business practices that do 
not conform to generally accepted practices of 
prudent mortgagees or that demonstrate irre-
sponsibility; 
‘‘(E) convicted of, or who has pled guilty 
or nolo contendre to, a felony related to partici-
pation in the real estate or mortgage loan in-
dustry— 
‘‘(i) during the 7-year period pre-
ceding the date of the application for li-
censing and registration; or 
‘‘(ii) at any time preceding such date 
of application, if such felony involved an 
act of fraud, dishonesty, or a breach of 
trust, or money laundering; 
‘‘(F) in violation of provisions of the 
S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.) or any applicable provision 
of State law; or 
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HR 1106 RFS 
‘‘(G) in violation of any other requirement 
as established by the Secretary. 
‘‘(3) RULEMAKING
AND
IMPLEMENTATION.— 
The Secretary shall conduct a rulemaking to carry 
out this subsection. The Secretary shall implement 
this subsection not later than the expiration of the 
60-day period beginning upon the date of the enact-
ment of this subsection by notice, mortgagee letter, 
or interim final regulations, which shall take effect 
upon issuance.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(h) USE OF NAME.—The Secretary shall, by regula-
tion, require each mortgagee approved by the Secretary 
for participation in the FHA mortgage insurance pro-
grams of the Secretary— 
‘‘(1) to use the business name of the mortgagee 
that is registered with the Secretary in connection 
with such approval in all advertisements and pro-
motional materials, as such terms are defined by the 
Secretary, relating to the business of such mort-
gagee in such mortgage insurance programs; and 
‘‘(2) to maintain copies of all such advertise-
ments and promotional materials, in such form and 
for such period as the Secretary requires.’’. 
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(c) CHANGE OF STATUS.—The National Housing Act 
is amended by striking section 532 (12 U.S.C. 1735f–10) 
and inserting the following new section: 
‘‘SEC. 532. CHANGE OF MORTGAGEE STATUS. 
‘‘(a) NOTIFICATION.—Upon the occurrence of any ac-
tion described in subsection (b), an approved mortgagee 
shall immediately submit to the Secretary, in writing, noti-
fication of such occurrence. 
‘‘(b) ACTIONS.—The actions described in this sub-
section are as follows: 
‘‘(1) The debarment, suspension of a Limited 
Denial of Participation (LDP), or application of 
other sanctions, fines, or penalties applied to the 
mortgagee or to any officer, partner, director, prin-
cipal, manager, supervisor, loan processor, loan un-
derwriter, or loan originator of the mortgagee pursu-
ant to applicable provisions of State or Federal law. 
‘‘(2) The revocation of a State-issued mortgage 
loan originator license issued pursuant to the 
S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.) or any other similar declaration 
of ineligibility pursuant to State law.’’. 
(d) CIVIL MONEY PENALTIES.—Section 536 of the 
National Housing Act (12 U.S.C. 1735f–14) is amend-
ed— 
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