Effective date of HUD CMP inflation-adjustment 'catch-up' rule
HUD catch-up adjustment of CMP amounts
The Department of Housing and Urban Development published in this morning's Federal Register an interim final rule, "Inflation Catch-up Adjustment of Civil Monetary Penalty Amounts," amending the agency's civil monetary penalty regulations by making inflation adjustments as mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The rule also removes three obsolete civil monetary penalty regulations previously authorized under statutes for which either HUD no longer has enforcement authority or the program is no longer active. Among other increases, the amendment increases the penalty per violation for FHA mortgagees and lenders from the current levels of $8,500 per violation capped at $1,525,000 per year, to $9,468 per violation capped annually at $1,893,610.
The rule will be effective August 16, 2016. Comments on the rule are due by August 15, 2016.