,i #aaeth ,,congress #b;d ,session ,h4 ,r4 #eiic ,,in ,,the ,,house ,,of ,,representatives ,june #a1 #bjah,mr4 ,gottheimer 7for himself and ,mr4 ,zeldin7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend title #ca1 ,united ,states ,code1 to provide for certain limitations and clarifications on false claims and civil actions related to ,federal ,housing ,administration programs1 ,veteran ,administration1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,fixing ,housing ,access ,act of #bjah4 ,i ,false ,claims #aja4 ,amendments to the ,false ,claims ,act 7a7 ,false claims procedure ,section #cgca7;b7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking subsection 7b7 and inserting the following3 7b7 ,a civil action under section #cgcj may not be brought-- 7#a7 except as provided in paragraph 7#b71 after the later of more than-- 7,a7 #f years after the date on which the violation of section #cgbi is committed2 or 7,b7 #c 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 circumstances1 but in no event more than #aj years after the date on which the violation is committed2 or 7#b7 in the case of any claim subject to section #cgbi7;e71 more than-- 7,a7 #f years after the date on which the violation of section #cgbi is committed1 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 entity2 or 7,b7 #c years after the date on which the violation of section #cgbi is committed1 if such violation occurs in connection with obtaining the payment of a claim for government insurance or guaranty benefits in respect of a loan1 and1 in each case1 without explicit written consent from the ,secretary responsible for the government guaranty or insurance program4 2 and 7#b7 by striking subsection 7d7 and inserting the following3 7d7 ,in any action brought under section #cgcj1 the ,united ,states shall be required to prove all essential elements of the cause of action1 including damages1 with respect to each false claim1 by a preponderance of the evidence4 4 7b7 ,false claims ,section #cgbi of title #ca1 ,united ,states ,codes1 is amended by adding at the end the following-- 7e7 ,claims ,in the case of any claim arising from the ,indian ,home ,loan ,guarantee ,program1 the ,native ,hawaiian ,housing ,loan ,guarantee ,program1 and any program administered by the ,federal ,housing ,administration1 the ,department of ,veterans ,affairs1 or the ,rural ,housing ,service of the ,department of ,agriculture1 or any successor thereto1 the following apply notwithstanding any other provision of this chapter3 7#a7 ,if the violation of section #cgbi is based on a false or fraudulent record or statement in connection with obtaining government insurance or guaranty of a loan1 the violation of this section is deemed to have been committed as of the effective date of such insurance or guaranty4 7#b7 ,if the violation of section #cgbi 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 entity1 for purposes of such a claim1 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 damages4 7#c7 ,if the violation of section #cgbi 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 guaranty1 the ,government will not be considered to have sustained damages because of such false or fraudulent record1 statement1 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 program1 even if a false or fraudulent record or statement had not been made or even if the loan would have been eligible if overpaid4 7#d7 ,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-- 7,a7 is expressly required by the ,government program requirements1 including loan level certification1 implied certifications1 and sub-regulatory guidance1 as part of the eligibility criteria for the ,government's issuance of the applicable insurance or guaranty policy2 7,b7 is made with respect to an individual loan1 including loan level certification2 and 7,c7 influenced the ,government's insurance or guaranty1 or payment of money or property1 based on the proper application of the applicable ,government program requirements in connection with such individual claim4 4 ,,ii ,increased ,housing and ,urban ,development ,clarity and ,enforcement #bja4 ,report and ,study on defect taxonomy ,the ,secretary of ,housing and ,urban ,development shall1 not later than #ij days after the date of enactment1 complete a study and report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 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 7in this ,act referred to as the defect taxonomy74 #bjb4 ,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 taxonomy4 ,such guidance shall include an effective date for such procedures to take effect within a reasonable amount of time after publication1 but not later than #f months after the effective date of this legislation4 #bjc4 ,report on effects of actions ,not later than #ahj days after the issuance of guidance under section #bjb1 the ,secretary of ,housing and ,urban ,development shall complete a study and submit a report to the committees referred to in section #bja on the effects of any actions taken by the ,secretary with regard to-- 7#a7 attracting private capital back to the ,federal ,housing ,administration market2 and 7#b7 whether ,single ,family ,housing ,loan ,quality ,assessment ,methodology adequately ensured the government has resources to prosecute and deter bad actors and protect consumers4 #bjd4 ,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 ,secretary4 ,,iii ,amendments to the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi #cja4 ,amendments to the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi ,section #iea7;h7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahcc;a7h77 is amended-- 7#a7 by striking ,a civil action and inserting the following3 7#a7 ,in general ,except as provided in paragraph 7#b71 a civil action 2 7#b7 by moving paragraph 7#a71 as added by subsection 7a71 #b ems to the right2 and 7#c7 by adding at the end the following3 7#b7 ,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 ,administration1 the ,department of ,veterans ,affairs or the ,rural ,housing ,service of the ,department of ,agriculture1 or any successor thereto1 the action may not be commenced more than-- 7,a7 #f years after the date on which the violation of this ,act is committed1 if such violation occurs in connection with obtaining government insurance or guaranty of a loan2 or 7,b7 #c years after the date on which the violation of this ,act is committed1 if such violation occurs in connection with obtaining the payment of a claim for government insurance or guaranty benefits in respect of a loan1 and1 in each case1 without explicit written consent from the ,secretary responsible for the government guaranty or insurance program4 4