1. Short title This Act may be cited as the FHA Foreclosure Prevention Act of 2018 . 2. Documentation of loss mitigation efforts Section 204(a) of the National Housing Act ( 12 U.S.C. 1710(a) ) is amended by adding at the end the following: (10) Documentation of loss mitigation efforts (A) In general Notwithstanding any other provision of this title, the Secretary may not pay insurance benefits to any mortgagee of a single family mortgage insured under this Act unless the mortgagee or other servicer for the mortgage has provided documentation to the Secretary that is sufficient to demonstrate compliance with any requirements of the Secretary applicable to the mortgage relating to loss mitigation. (B) Rule of construction Nothing in this paragraph may be construed to limit the authority of the Secretary to impose civil monetary penalties. . 3. HUD oversight of servicers Section 533 of the National Housing Act ( 12 U.S.C. 1735f–11 ) is amended by adding at the end the following: (d) Oversight of mortgage servicers (1) Oversight (A) In general The Secretary shall conduct oversight of servicers of single family mortgages insured under this Act on a regular and ongoing basis and in a manner designed to— (i) ensure that the servicers comply with the requirements of this Act and the standards and guidelines established by the Secretary for the servicing of those mortgages; and (ii) identify systemic problems and trends with the compliance described in clause (i). (B) Loss mitigation requirements The oversight conducted under subparagraph (A) shall include— (i) oversight designed to ensure that the servicers comply with the requirements under this Act, and the standards and guidelines established by the Secretary, for loss mitigation