§4642 Reporting of fraudulent loans

Summary

The Director must require regulated entities to quickly tell the Director if they learn they bought or sold a fraudulent loan or financial instrument, or if they suspect fraud. The Director must also require those entities to have procedures to find these kinds of transactions. If a regulated entity or a person connected to it reports in good faith, or makes someone report, they cannot be held liable under any federal or state law or contract, including arbitration, for making the report or for not notifying the people named in it.