FHFAFinal Rule

Rules of Practice and Procedure: Civil Monetary Penalty Inflation Adjustment

HousingFinance & Banking

Summary

The Federal Housing Finance Agency (FHFA) is updating the financial penalties it can impose on companies that violate housing finance rules, adjusting them upward to account for inflation since the last update. This ensures that penalties remain meaningful deterrents for violations involving mortgages, lending practices, and other housing finance activities.

Key Points

  • 1The FHFA increased civil monetary penalties (fines) for violations of housing finance laws to keep pace with inflation
  • 2These penalties apply to banks, mortgage lenders, and other companies that fail to follow FHFA rules about lending practices and mortgage standards
  • 3Higher penalties encourage companies to follow the rules more carefully, protecting borrowers and the stability of the housing finance system
  • 4This is a routine adjustment required by federal law to prevent inflation from weakening the impact of penalties over time
  • 5The changes take effect immediately and apply to violations that occur on or after the regulation's publication date

Key Dates

Published

January 16, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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