[Federal Register Volume 79, Number 38 (Wednesday, February 26, 2014)]
[Notices]
[Pages 10820-10821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04198]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5756-N-05]
60-Day Notice of Proposed Information Collection: Quality Control
Requirements for Direct Endorsement Lenders
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
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SUMMARY: HUD is seeking approval from the Office of Management and
Budget (OMB) for the information collection described below. In
accordance with the Paperwork Reduction Act, HUD is requesting comment
from all interested parties on the proposed collection of information.
The purpose of this notice is to allow for 60 days of public comment.
DATES: Comments Due Date: April 28, 2014.
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: Colette Pollard, Reports
Management Officer, QDAM, Department of Housing and Urban Development,
451 7th Street SW., Room 4176, Washington, DC 20410-5000; telephone
202-402-3400 (this is not a toll-free number) or email at
[email protected] for a copy of the proposed forms or other
available information. Persons with hearing or speech impairments may
access this number through TTY by calling the toll-free Federal Relay
Service at (800) 877-8339.
FOR FURTHER INFORMATION CONTACT: Justin D. Burch, Director, Quality
Assurance Division, Office of Lender Activities and Program Compliance,
Department of Housing and Urban Development, 451 7th Street SW., Room
B133-P3214, Washington, DC 20410, telephone 202-708-1515 (this is not a
toll-free number). Persons with hearing or speech impairments may
access this number through TTY by calling the toll-free Federal Relay
Service at (800) 877-8339. Copies of available documents submitted to
OMB may be obtained from Mr. Burch.
SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is
seeking approval from OMB for the information collection described in
Section A.
A. Overview of Information Collection
Title of Information Collection: Quality Control Requirements for
Direct Endorsement Lenders.
OMB Approval Number: 2502-0600.
Type of Request: Extension of a currently approved collection.
Form Number: N/A.
Description of the need for the information and proposed use: Under
24 CFR 202.8(3), Direct Endorsement (DE) lenders which sponsor third-
party originators (TPOs) are responsible to the Secretary for the
actions of TPOs or mortgagees in originating loans or mortgages, unless
applicable law or regulation requires specific knowledge on the part of
the party to be held responsible. As a result, DE lenders are
responsible for conducting quality control on TPO originations of FHA-
insured mortgage loans, and ensuring that their quality control plans
contain appropriate oversight provisions. This creates an information
collection burden on DE lenders, since these institutions must conduct
quality control on all loans they originate and underwrite. In
addition, under 24 CFR 203.255(c) and (e), HUD conducts both pre- and
post-endorsement reviews of loans submitted for FHA insurance by DE
lenders. As part of those reviews, the Secretary is authorized to
determine if there is any information indicating that any certification
or required document is false, misleading, or constitutes fraud or
misrepresentation on the part of any party, or that the mortgage fails
to meet a statutory or regulatory requirement. In order to assist the
Secretary with this directive, FHA requires that lenders self-report
all findings of fraud and material misrepresentation, as well any
material findings concerning the origination, underwriting, or
servicing of the loan that the lender is unable to mitigate or
otherwise resolve. The obligation to self-report these findings creates
an additional information collection burden on DE lenders.
In accordance with the requirements of 5 CFR 1320.8(d), a Notice
soliciting comments on this collection of information was initially
published in the Federal Register on December 21, 2010 (Volume 75,
Number 244, page 80066). At that time, FHA still allowed for loan
correspondents to participate in its programs and had not yet
transitioned to the use of TPOs. Therefore, FHA estimated information
[[Page 10821]]
collection burdens based on the expected used of TPOs by DE lenders.
Three years later, FHA has revised these estimates with real data,
which has substantially reduced the information collection burden
associated with OMB Control Number 2502-0600.
Respondents: Business or other for-profit
Estimated Number of Respondents: 1,831.
Estimated Number of Responses: 135,682.
Frequency of Response: Annually.
Average Hours per Response: .52.
Total Estimated Burdens: 71,017.
B. Solicitation of Public Comment
This notice is soliciting comments from members of the public and
affected parties concerning the collection of information described in
Section A on the following:
(1) 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) The accuracy of the agency's estimate of the burden of the
proposed collection of information;
(3) Ways to enhance the quality, utility, and clarity of the
information to be collected; and
(4) Ways to 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.
HUD encourages interested parties to submit comment in response to
these questions.
Authority: Section 3507 of the Paperwork Reduction Act of
1995, 44 U.S.C. Chapter 35.
Dated: February 20, 2014.
Laura M. Marin,
Associate General Deputy Assistant Secretary for Housing-Associate
Deputy Federal Housing Commissioner.
[FR Doc. 2014-04198 Filed 2-25-14; 8:45 am]
BILLING CODE 4210-67-P