(a) In general. Any servicer, mortgagee, or mortgage insurer that
violates a provision of this Act 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
10, 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 10, 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 10, 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.
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(b) Timing of actions. No action may be brought
by a mortgagor under subsection (a) 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) with respect to a residential
mortgage transaction, the failure of a servicer to comply with the
requirements of this Act due to the failure of a mortgage insurer
or a mortgagee to comply with the requirements of this Act, shall
not be construed to be a violation of this Act by the servicer.
(2) 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.
[12
USC 4907.]
