[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5993 Introduced in House (IH)]

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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 
    addition to the Committee on the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions 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 programs, Veteran 
                Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives 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''.

                         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 material to 
                the right of action are known or reasonably 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 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 insurance or guaranty benefits in respect of 
                a loan, and, in each case, without explicit written 
                consent from the Secretary responsible for the 
                government 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 elements of the cause of 
action, including damages, with respect to each false claim, by a 
preponderance of the evidence.''.
    (b) False Claims.--Section 3729 of title 31, United States Codes, 
is amended by adding at the end the following--
    ``(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 
Administration, the Department of Veterans Affairs, or the Rural 
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 connection with obtaining 
        government insurance or guaranty 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 connection with obtaining 
        either government insurance or guaranty of a loan or submitting 
        periodic certifications 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 connection 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 
        because 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 Government 
                program requirements, including loan level 
                certification, implied certifications, and sub-
                regulatory guidance, as part of the eligibility 
                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 insurance 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.''.

     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 Financial 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 regarding the Single Family Housing 
Loan Quality Assessment Methodology (in this Act referred to as the 
``defect taxonomy'').

SEC. 202. GUIDANCE.

    The Secretary of Housing and Urban Development shall publish 
guidance to clarify the remedy and enforcement 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 procedures to take effect within a 
reasonable amount of time 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 guidance 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 Federal Housing 
        Administration market; and
            (2) whether Single Family Housing Loan Quality 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 standards were implemented by the Secretary.

 TITLE III--AMENDMENTS TO THE FINANCIAL INSTITUTIONS 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 paragraph (2), a 
        civil action'';
            (2) by moving paragraph (1), as added by subsection (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 Housing Service of 
        the Department of Agriculture, or any successor thereto, the 
        action may not be commenced more than--
                    ``(A) 6 years after the date on which the violation 
                of this Act is committed, if such violation occurs in 
                connection with obtaining government insurance or 
                guaranty of a loan; or
                    ``(B) 3 years after the date on which the violation 
                of this Act is committed, if such violation occurs in 
                connection with obtaining the payment of a claim for 
                government insurance or guaranty benefits in respect of 
                a loan, and, in each case, without explicit written 
                consent from the Secretary responsible for the 
                government guaranty or insurance program.''.
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