PUBLIC LAW 103-325—SEPT. 23, 1994 108 STAT. 2261 " (f) CIVIL MONETARY PENALTIES FOR FAILURE TO REQUIRE FLOOD INSURANCE OR NOTIFY. — "(1) CIVIL MONETARY PENALTIES AGAINST REGULATED LEND- ERS.—Any regulated lending institution that is found to have a pattern or practice of committing violations under paragraph (2) shall be assessed a civil penalty by the appropriate Federal entity for lending regulation in the amount provided under paragraph (5). "(2) LENDER VIOLATIONS. —The violations referred to in paragraph (1) shall include— "(A) making, increasing, extending, or renewing loans in violation of— "(i) the regulations issued pursuant to subsection (b) of this section; "(ii) the escrow requirements under subsection (d) of this section; or "(iii) the notice requirements under section 1364 of the National Flood Insurance Act of 1968; or "(B) failure to provide notice or purchase flood insurance coverage in violation of subsection (e) of this section. "(3) CIVIL MONETARY PENALTIES AGAINST GSE'S. — "(A) IN GENERAL. —I f the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation is found by the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development to have a pattern or practice of purchasing loans in violation of the procedures established pursuant to subsection (b)(3), the Director of such Office shall assess a civil penalty against such enterprise in the amount provided under paragraph (5) of this subsection. "(B) DEFINITION. —For purposes of this subsection, the term 'enterprise' means the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. "(4) NOTICE AND HEARING.—^A penalty under this subsection may be issued only after notice and an opportunity for a hearing on the record. "(5) AMOUNT. —^A civil monetary penalty under this subsection may not exceed $350 for each violation under paragraph (2) or paragraph (3). The total amount of penalties assessed under this suijsection against any single regulated lending institution or enterprise during any calendar year may not exceed $100,000. "(6) LENDER COMPLIANCE.— Notwithstanding any State or local law, for purposes of this subsection, any regulated lending institution that purchases flood insurance or renews a contract for flood insurance on behalf of or as an agent of a borrower of a loan for which flood insurance is required shall be considered to have complied with the regulations issued under subsection (b). "(7) EFFECT OF TRANSFER ON LIABILITY.— Any sale or other transfer of a loan by a regulated lending institution that has committed a violation under paragraph (1), that occurs subsequent to the violation, shall not affect the liability of the transferring lender with respect to any penalty under this subsection. A lender shall not be liable for any violations relat-
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