; and (2) enact additional penalties for purchasers described in paragraph (1) that the Director determines have repeatedly not complied with the requirements under subsection (a)(5), including monetary penalties and prohibition from participating in sales under this section. (e) Regulations The Director shall issue regulations defining the terms of permissible auctions or sales in accordance with the requirements in this section. 1330. Sale of re-performing loans (a) Bulk auction or group sales An enterprise may not conduct bulk auctions or other group sales of single family re-performing residential loans unless the following requirements are met: (1) The enterprise establishes a system that provides priority to Federal, State, local, or Tribal governments or nonprofit organizations that have the capacity and experience required for buying, servicing, and resolving single family mortgage loans in a manner that promotes affordable housing, fair housing, affordable homeownership, provision of housing counseling, or neighborhood stabilization. (2) Clear, written notice is sent by the enterprise or servicer through certified and first-class mail to the borrower and all owners of record, with a copy sent to the enterprise if sent by the servicer, not less than 90 days before the inclusion of the loan in any proposed sale— (A) stating that the loan will be included in a bulk auction or group sale of re-performing loans; and (B) describing the bulk auction or group sale process, including— (i) the loss mitigation or other protections available to the borrower and other owners of record both before and after the auction or sale