§ 4907. — Civil liability.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4907]
TITLE 12--BANKS AND BANKING
CHAPTER 49--HOMEOWNERS PROTECTION
Sec. 4907. Civil liability
(a) In general
Any servicer, mortgagee, or mortgage insurer that violates a
provision of this chapter shall be liable to each mortgagor to whom the
violation relates for--
(1) in the case of an action by an individual, or a class action
in which the liable party is not subject to section 4909 of this
title, any actual damages sustained by the mortgagor as a result of
the violation, including interest (at a rate determined by the
court) on the amount of actual damages, accruing from the date on
which the violation commences;
(2) in the case of--
(A) an action by an individual, such statutory damages as
the court may allow, not to exceed $2,000; and
(B) in the case of a class action--
(i) in which the liable party is subject to section 4909
of this title, such amount as the court may allow, except
that the total recovery under this subparagraph in any class
action or series of class actions arising out of the same
violation by the same liable party shall not exceed the
lesser of $500,000 or 1 percent of the net worth of the
liable party, as determined by the court; and
(ii) in which the liable party is not subject to section
4909 of this title, such amount as the court may allow, not
to exceed $1,000 as to each member of the class, except that
the total recovery under this subparagraph in any class
action or series of class actions arising out of the same
violation by the same liable party shall not exceed the
lesser of $500,000 or 1 percent of the gross revenues of the
liable party, as determined by the court;
(3) costs of the action; and
(4) reasonable attorney fees, as determined by the court.
(b) Timing of actions
No action may be brought by a mortgagor under subsection (a) of this
section later than 2 years after the date of the discovery of the
violation that is the subject of the action.
(c) Limitations on liability
(1) In general
With respect to a residential mortgage transaction, the failure
of a servicer to comply with the requirements of this chapter due to
the failure of a mortgage insurer or a mortgagee to comply with the
requirements of this chapter, shall not be construed to be a
violation of this chapter by the servicer.
(2) Rule of construction
Nothing in paragraph (1) shall be construed to impose any
additional requirement or liability on a mortgage insurer, a
mortgagee, or a holder of a residential mortgage.
(Pub. L. 105-216, Sec. 8, July 29, 1998, 112 Stat. 905.)
