[Federal Register Volume 77, Number 134 (Thursday, July 12, 2012)]
[Notices]
[Pages 41197-41198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17018]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5602-N-04]
Notice of Proposed Information Collection: Comment Request; Legal
Instructions Concerning Applications for Full Insurance Benefits--
Assignment of Multifamily Mortgages to the Secretary
AGENCY: Office of the General Counsel, HUD.
ACTION: Notice.
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SUMMARY: The proposed information collection requirement described
below will be submitted to the Office of Management and Budget (OMB)
for review, as required by the Paperwork Reduction Act. The Department
is soliciting public comments on the subject proposal.
DATES: Comments Due Date: September 10, 2012.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposal. Comments should refer to the proposal by name and/or OMB
Control Number and should be sent to: Nacheshia Foxx, Reports Liaison
Officer, Department of Housing and Urban Development, 451 Seventh
Street SW., Room 10276, Washington, DC 20410-0500.
FOR FURTHER INFORMATION CONTACT: Millicent Potts, Assistant General
Counsel for Multifamily Mortgage Division, Office of General Counsel,
Department of Housing and Urban Development, 451 Seventh Street SW.,
Room 9230, Washington, DC 20410-0500, telephone (202) 708-1274 (this is
not a toll-free number) for a copy of the instructions.
SUPPLEMENTARY INFORMATION: The Department is submitting the proposed
information collection to OMB for review, as required by the Paperwork
Reduction Act of 1995 (44 U.S.C. Chapter 35, as amended).
This notice is soliciting comments from members of the public and
affected agencies concerning the proposed collection of information to:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (2)
Evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information; (3) Enhance the quality, utility,
and clarity of the information to be collected; and (4) Minimize the
burden of the collection of information on those who are to respond;
including through the use of appropriate automated collection
techniques or other forms of information technology, e.g., permitting
electronic submission of responses.
This notice also lists the following information:
Title of Proposal: Legal Instructions Concerning Applications for
Full Insurance Benefits--Assignment of Multifamily Mortgage to the
Secretary.
OMB Control Number, if applicable: 2510-0006.
Description of the need for the information and proposed use:
Mortgagees of HUD-insured mortgages may receive mortgage insurance
benefits upon assignment of mortgages to HUD. In connection with the
assignment, legal documents (e.g., mortgage, mortgage note, security
agreement, title insurance policy) must be submitted to the Department.
The instructions describe the documents to be submitted and the
procedures for submission.
HUD has made the following revisions to the Legal Instructions
Concerning Applications for Full Insurance Benefits--Assignment of
Multifamily Mortgage to the Secretary (the ``Legal Instructions''):
Part A, item 1--removed the reference to ``the model form of
assignment'' and replaced it with ``the requisite language below''
since there is not a model form of assignment.
Part B, first paragraph--revised second sentence to add ``or
debentures'' to indicate that one 15-day extension of the deadline for
claims is applicable for claims paid in cash or debentures.
Part B, item 1--``(insert the unpaid balance as of the date of
assignment)'' has been changed to ``[insert the unpaid balance as of
the date of assignment]'' as this language is instructive and should
not appear within the actual endorsement on the Note. Also, ``note''
was changed to ``Note'' within the requisite language, since the
references are to the promissory Note.
Part B, item 2--removed ``, certified by the recording official''
as this language was redundant. Also, revised the requisite
Indemnification Agreement language for consistency with the form of
Indemnification Agreement in Part B, item 1, to read as follows:
[Insert name of the mortgagee] agrees to indemnify and hold
harmless the Secretary of Housing and Urban Development and his/her
successors and assigns against any loss, costs, or charges
whatsoever, including attorney's fees, which may be sustained by the
Secretary as a result of the failure of the mortgagee to furnish an
original copy of [insert description of document].''
Part B, item 4--removed ``, if recorded'' at the end of the first
sentence, as this language was redundant.
Part B, item 5--revised the first sentence to read as follows, for
clarity: ``The original security agreement/chattel mortgage, or a
certified copy. All certifications must be made by the recording
official.'' Also revised the second sentence to remove the sample
Indemnification Agreement provision and cross-reference instead to Part
B, item 2.
Part B, item 7--revised the first sentence to read as follows, for
clarity: ``Original interim assignments of the
[[Page 41198]]
[Security Agreement][Chattel Mortgage], or certified copies. All
certifications must be made by the recording official.'' Also, in the
next sentence, changed ``are unrecorded'' to ``were not recorded'', and
referred to the form of Indemnification Agreement in Part B, item 2.
Part B, item 8--changed references to the ``Uniform Commercial
Code'' to ``UCC'' since the term was defined in Part A, item 2. Also
changed ``ATIMA'' to ``as their interests may appear'' for clarity.
Under ``Lapsed UCC filings'', removed ``as applicable'' at the end of
the first paragraph. Under ``UCC filing was never filed'', the
following sentence was added at the end of the first paragraph: ``The
mortgagee must also submit an Indemnification Agreement that contains
the following language and is otherwise acceptable to HUD:''.
Part B, item 8--under ``Lapsed UCC filings * * *'' and ``UCC filing
was never filed''--revised the paragraphs regarding Indemnification
Agreements to include the requisite language, so that the Legal
Instructions would be formatted like Part B, items 1 and 2.
Part B, item 9--changed ``the Departmental regulations'' to ``HUD
regulations'' for clarity.
Part B, item 10 has been revised to indicate that the evidence of
property insurance is acceptable if accompanied by an affidavit from
the mortgagee that the hazard insurance policy is in full force and
effect as of the date of assignment to the Secretary, since mortgagees
are no longer able to obtain an ACORD that does not state it is for
informational purposes only and does not confer rights upon the holder
of the policy. Requisite language for the mortgagee's affidavit has
been added.
Part B, item 12--``project loan'' was changed to ``Note'' for
accuracy, since the endorsement is on the Note.
Part B, item 13 has been added to require submission of additional
documents for loans insured under Section 232 of the National Housing
Act and processed under LEAN, including, but not limited to, an
assignment of the Master Lease and all corollary Subordination and Non-
Disturbance Agreements, the Deposit Account Control Agreement and any
Notice of Exclusive Control that has been delivered to the Bank (as
defined in the Deposit Account Control Agreement), and the
Intercreditor Agreement and all riders thereto.
Part B, former items 13, 14 and 15 have been re-numbered to items
14, 15, and 16, respectively.
Part B, re-numbered item 15 has been revised in the first full
paragraph after the Note, to indicate that if title insurance issues
cannot be resolved within the deadline ``(including extensions)'',
interest will be curtailed ``or the mortgage may be reassigned to the
mortgagee, thereby requiring the mortgagee to reimburse the Secretary
the amounts paid plus interest.''
Part B, re-numbered item 16 has been revised to change ``HUD'' to
``the Secretary'' for consistency.
Part B, final Note at end, has been revised to add that HUD
reserves the right ``in its sole discretion'' to refuse to accept an
Indemnification Agreement.
The revised Legal Instructions, which reflects new language added
in bold, and language removed in strikeout is attached as Appendix A.
Agency form numbers, if applicable: N/A.
Members of affected public: Mortgagees when applying for insurance
benefits from HUD.
Estimation of the total numbers of hours needed to prepare the
information collection including number of respondents, frequency of
response, and hours of response:
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Frequency of Total burden
Number of respondents Burden hours response hours
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359.......................................................... 26 1 9,334
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Status of the proposed information collection: Extension of a
currently approved collection.
Authority: The Paperwork Reduction Act of 1995, 44 U.S.C.
Chapter 35, as amended.
Dated: July 9, 2012.
Aaron Santa Anna,
Assistant General Counsel for Regulations.
[FR Doc. 2012-17018 Filed 7-11-12; 8:45 am]
BILLING CODE 4210-67-P