‘‘(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 
‘‘(G) in violation of any other requirement 
as established by the Secretary.’’; 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 
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‘‘(2) to maintain copies of all such advertise-
ments and promotional materials, in such form and 
for such period as the Secretary requires.’’. 
(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.’’. 
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(d) CIVIL MONEY PENALTIES.—Section 536 of the 
National Housing Act (12 U.S.C. 1735f–14) is amend-
ed— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘or any of its own-
ers, officers, or directors’’ after ‘‘mort-
gagee or lender’’; 
(ii) in subparagraph (H), by striking 
‘‘title I’’ and all that follows through ‘‘Act 
of 1989)’’ and inserting ‘‘title I or II’’; and 
(iii) by inserting after subparagraph 
(J) the following: 
‘‘(K) Violation of section 202(d) of this 
Act (12 U.S.C. 1708(d)).’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (B), by striking 
‘‘or’’ at the end; 
(ii) in subparagraph (C), by striking 
the period at the end and inserting ‘‘; or’’; 
and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
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‘‘(D) causing or participating in any of the 
violations set forth in paragraph (1) of this sub-
section.’’; and 
(2) in subsection (g), by striking ‘‘The term’’ 
and all that follows through the end of the sentence 
and inserting ‘‘For purposes of this section, a person 
acts knowingly when a person has actual knowledge 
of acts or should have known of the acts.’’. 
(e) EXPANDED REVIEW OF FHA MORTGAGEE AP-
PLICANTS AND NEWLY APPROVED MORTGAGEES.—Not 
later than the expiration of the 3-month period beginning 
upon the date of the enactment of this Act, the Secretary 
of Housing and Urban Development shall— 
(1) expand the existing process for reviewing 
new applicants for approval for participation in the 
mortgage insurance programs of the Secretary for 
mortgages on 1- to 4-family residences for the pur-
pose of identifying applicants who represent a high 
risk to the Mutual Mortgage Insurance Fund; and 
(2) implement procedures that, for mortgagees 
approved during the 12-month period ending upon 
such date of enactment— 
(A) expand the number of mortgages origi-
nated by such mortgagees that are reviewed for 
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compliance with applicable laws, regulations, 
and policies; and 
(B) include a process for random reviews 
of such mortgagees and a process for reviews 
that is based on volume of mortgages originated 
by such mortgagees. 
Æ 
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