Treble Damages for Failure to Engage in Loss Mitigation

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"...In the case of mortgagee's failure to engage in loss mitigation activities, as provided in section 536(b)(1)(I)[12 USCA Section 1735f-14(b)(1)(I)], the penalty shall be in the amount of three times the amount of any insurance benefits claimed by the mortgagee with respect to any mortgage for which the mortgagee failed to engage in such loss mitigation actions."

The Proposed Rule was published in the Federal Register on April 14, 2004, following the publication of an Advance Notice of Proposed Rulemaking (ANPR) and takes into consideration public comments received on the ANPR.

Interested persons are invited to submit comments regarding this rule in accordance with the instructions found in the Proposed Rule.

Further information about the implementation of this sanction will be provided as it becomes available.

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