‘‘(b) STANDARDS.—The Director shall establish 
standards, by regulation, for covered servicers relating to 
each of the following: 
‘‘(1) Adequacy of internal controls and informa-
tion systems, taking into account the nature and 
scale of business operations. 
‘‘(2) Independence and adequacy of internal 
audit systems. 
‘‘(3) Overall risk management processes, includ-
ing adequacy of oversight by senior management and 
policies to identify, measure, monitor, and control 
material risks, including data protection and reputa-
tional risks. 
‘‘(4) Compliance with the mortgage servicing 
requirements under the Real Estate Settlement Pro-
cedures Act of 1974 (12 U.S.C. 2601 et seq.) and 
the regulations implementing such Act (12 C.F.R. 
Part 1024; Regulation X), in consultation with the 
Bureau of Consumer Financial Protection, including 
a system for solicitation and review of borrower com-
plaints involving servicing of single-family housing 
mortgage loans owned or guaranteed by an enter-
prise. 
‘‘(5) Documentation and retention of records 
related to borrower interactions that enable the Di-
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rector to evaluate the quality of service given to bor-
rowers, including borrower contact, delinquency 
management practices, loan modifications and fore-
closure alternatives, and foreclosure timelines, which 
shall provide that in each instance involving a de-
fault under a loan, the covered servicer shall docu-
ment and retain a detailed description of the actions 
such servicer took to comply with the enterprises’ 
loss mitigation review requirements, including efforts 
to establish borrower contact, solicit a loss mitiga-
tion application, review the application under the ap-
propriate guidelines, and inform the borrower of the 
servicer’s decisions. 
‘‘(6) Such other operational and management 
standards as the Director determines to be appro-
priate to carry out the purposes of this Act. 
‘‘(c) FAILURE TO MEET STANDARDS.— 
‘‘(1) PLAN REQUIREMENT.— 
‘‘(A) IN GENERAL.—If the Director deter-
mines that a covered servicer fails to meet any 
standard established under subsection (b), the 
Director shall require the covered servicer to 
submit an acceptable plan, in writing, to the 
Director within the time allowed under subpara-
graph (C). 
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‘‘(B) CONTENTS.—Any plan required or 
authorized under subparagraph (A) shall speci-
fy the actions that the covered servicer will take 
to correct the deficiency. 
‘‘(C) DEADLINES
FOR
SUBMISSION
AND 
REVIEW.—The Director shall by regulation es-
tablish deadlines that— 
‘‘(i) require a covered servicer to sub-
mit a plan required under this subpara-
graph not later than 30 days after the Di-
rector determines that the covered servicer 
fails to meet any standard established 
under subsection (a); and 
‘‘(ii) require the Director to approve, 
deny, or otherwise respond to the plan not 
later than 30 days after the plan is sub-
mitted. 
‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB-
MIT OR IMPLEMENT PLAN.—If a covered servicer 
fails to submit an acceptable plan within the time al-
lowed under paragraph (1)(C), or fails in any mate-
rial respect to implement a plan accepted by the Di-
rector, the following shall apply: 
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‘‘(A) REQUIRED
CORRECTION
OF
DEFI-
CIENCY.—The Director shall, by order, require 
the covered servicer to correct the deficiency. 
‘‘(B) OTHER
AUTHORITY.—The Director 
may, by order, take one or more of the fol-
lowing actions until the deficiency is corrected: 
‘‘(i) Impose a civil monetary penalty 
upon the covered servicer in an amount not 
to exceed $10,000 for each day during 
which such deficiency continues. 
‘‘(ii) Mandate the transfer of loan 
servicing rights without providing com-
pensation to the covered servicer. 
‘‘(iii) Limit or prohibit the covered 
servicer from conducting business with the 
enterprises. 
‘‘(iv) Require the covered servicer to 
take any other action that the Director de-
termines will better carry out the purposes 
of this section than any of the actions de-
scribed in this subparagraph. 
‘‘(3) MANDATORY
RESTRICTIONS.—In com-
plying with paragraph (2), the Director shall take 
one or more of the actions described in clauses (i) 
through (iv) of paragraph (2)(B) if— 
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‘‘(A) the Director determines that the cov-
ered servicer fails to meet any standard pre-
scribed under subsection (b); and 
‘‘(B) the covered servicer has not corrected 
the deficiency within a reasonable period or 
within a period established by the Director. 
‘‘(d) OTHER ENFORCEMENT AUTHORITY NOT AF-
FECTED.—The authority of the Director under this sec-
tion is in addition to any other authority of the Director 
and does not limit the additional or concurrent authority 
of the Bureau of Consumer Financial Protection as estab-
lished in title X of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5481 et seq.). 
‘‘(e) OVERSIGHT.—The Director shall conduct over-
sight of covered servicers on a regular and ongoing basis 
and in a manner designed to ensure that such servicers 
comply with the requirements of this Act and the regula-
tions established by the Director for servicing of such 
mortgages and to identify systemic problems and trends 
with such compliance. 
‘‘(f) EXAMINATIONS.— 
‘‘(1) AUTHORITY.—The Director shall have 
power to make a thorough examination of any cov-
ered servicer whenever the Director determines an 
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