12 U.S.C. §4907 — Civil liability
HPA private right of action section. Civil-liability framework (actual damages with interest, statutory damages with class- action caps, costs, reasonable attorney fees); 2-year discovery-rule statute of limitations; servicer defense when failure to comply is caused by mortgage-insurer or mortgagee non-compliance.
Verbatim regulatory text
Verbatim provisions from 12 U.S.C. §4907 — Civil liability — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 U.S.C. §4907(a)
(a) In generalAny 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.
12 U.S.C. §4907(b)
(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.
12 U.S.C. §4907(c)
(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.
12 U.S.C. §4907 note — source credit and editorial notes (not statute text)
(Pub. L. 105–216, § 8, July 29, 1998, 112 Stat. 905.)
Get this regulation in your AI window
Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.
Open in Claude Open in ChatGPT
Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.
Get notified if this rule changes
One email when 12 U.S.C. §4907 — Civil liability changes: what changed, the new verbatim text, and the effective date. Nothing else.
Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.
Source of record: https://claudeforcompliance.com/regs/hpa-12usc-4907/
· register hpa-12usc-4907 · verbatim, source-snapshotted regulator text from the
Claude for Compliance corpus. To work from every register at once, download the corpus
and follow the methodology.