The department may impose additional appropriate remedies and sanctions against a borrower when any of the following occurs:

1. (a) The department determines that the annual compliance report required in Section 129075 indicates that the borrower is out of compliance with subdivision (j) of Section 129050.
2. (b) A facility fails to carry out the actions agreed to in a plan approved by the department pursuant to Section 129070.

3. (c) The facility fails to submit compliance reports as required by Section 129075. The additional remedies include referring the violation to the office of Attorney General of California for legal action authorized under existing law or other remedy at law or equity.

   However, the remedies obtainable by legal action shall not include withdrawal or cancellation of the loan insurance provided under this chapter.