[Federal Register Volume 79, Number 152 (Thursday, August 7, 2014)]
[Rules and Regulations]
[Pages 46181-46182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18723]



24 CFR Parts 200 and 2700

[Docket No. FR-5795-F-01]
RIN 2502-AJ24

Removal of Emergency Homeowners' Loan Program Regulations

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.


SUMMARY: Through this rule, HUD removes regulations for the Emergency 
Homeowners' Loan Program. The statutory authority to provide emergency 
assistance to homeowners under this program expired on September 30, 
2011. Because these regulations are no longer operative, they are being 
removed by this final rule. To the extent that assistance made 
available under this program is still ongoing, the removal of these 
regulations does not affect the requirements for transactions entered 
into when these parts were in effect. Assistance made available under 
the Emergency Homeowners' Loan Program will continue to be governed by 
the regulations that existed immediately before September 8, 2014.

DATES: Effective date: September 8, 2014.

FOR FURTHER INFORMATION CONTACT: Camille E. Acevedo, Associate General 
Counsel for Legislation and Regulations, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
10276, Washington, DC 20410; telephone 202-708-1793 (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 800-877-8389.


I. Background

    On July 2, 1975, the Emergency Housing Act of 1975 (Pub. L. 94-50) 
(12 U.S.C. 2701 et seq.) was signed into law. Title I of this statute 
is the Emergency Homeowners' Relief Act (1975 Act), which conferred on 
HUD standby authority to insure or make loans to, or make emergency 
mortgage relief payments on behalf of, homeowners to defray their 
mortgage expenses (collectively emergency assistance). The goal of the 
program was to prevent widespread mortgage foreclosures and distress 
sales of homes by homeowners who had experienced a substantial 
reduction of income resulting from the temporary involuntary loss of 
employment or underemployment due to adverse economic conditions. HUD 
promulgated regulations implementing the 1975 Act on December 30, 1975 
(see 40 FR 59866) and codified these regulations in 24 CFR part 2700. 
This emergency assistance program, quickly put in place by HUD in 1975, 
was not utilized and, in 1995, as part of HUD's effort to remove 
outdated, obsolete, or unutilized regulations, HUD removed the 
regulations in 24 CFR part 2700 from the CFR. (See 60 FR 47263.)
    The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. 
L.111-203) (the Dodd-Frank Act), signed into law on July 21, 2010, 
reauthorized the 1975 Act, with certain amendments, and the Emergency 
Homeowners' Loan Program (EHLP). The Dodd-Frank Act also made available 
$1,000,000,000 for HUD to provide emergency mortgage assistance on 
behalf of homeowners struggling to make mortgage payments due to a 
substantial reduction of income resulting from the temporary 
involuntary loss of employment or underemployment due to adverse 
economic conditions. In accordance with the 1975 Act, as reauthorized 
and amended, HUD reinstituted regulations for EHLP on March 4, 2011, at 
76 FR 11946, and administered EHLP. (For further information about 
EHLP, see 76 FR 11946 through 11948.)
    The reauthorization of EHLP, however was only for one fiscal year, 
fiscal year (FY) 2011. September 30, 2011 was the last date upon which 
HUD could enter into binding agreements with individual mortgagors 
approved for participation in EHLP. As provided in the March 4, 2011, 
rule, a binding agreement was considered to have occurred only when a 
borrower had been approved for participation in this program and funds 
had been allocated to that borrower, all of which must have occurred on 
or before September 30, 2011.

This Final Rule

    Since authority for HUD to enter into agreements with borrowers to 
provide emergency assistance under the EHLP expired on September 30, 
2011, HUD is proceeding to remove EHLP regulations codified in 24 CFR 
part 2700.
    Emergency assistance provided under EHLP that is still outstanding 
will continue to be governed by the regulations in effect prior to 
September 8, 2014. Accordingly, this rule amends 24 CFR 200.1301 
(Expiring Programs--Savings Clause) of 24 CFR 200, subpart W 
(Administrative Matters), and adds a new paragraph (f) to Sec.  
200.1301, which preserves the EHLP regulations as in effect prior to 
the effective date of this final rule and continues to govern any 
assistance provided under EHLP on or before September 30, 2011.

II. Justification for Final Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
final rule for effect, in accordance with HUD's own regulations on 
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions 
to the general rule if the agency finds good cause to omit advance 
notice and public participation. The good cause requirement is 
satisfied when prior public procedure is impracticable, unnecessary, or 
contrary to the public interest.'' (See 24 CFR 10.1.)
    HUD finds that public notice and comment are not necessary for this 
rulemaking because the authority to provide assistance under EHLP 
expired on September 30, 2011, assistance is no longer being provided 
under this program and therefore, the regulations are no longer 
operative. For these reasons, HUD has determined that it is unnecessary 
to delay the effectiveness of this rule in order to solicit prior 
public comment.

III. Findings and Certification

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because HUD has determined that good cause exists to issue this rule 
without prior public comment, this rule is not subject to the 
requirement to publish an initial or final regulatory flexibility 
analysis under the RFA as part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \1\ 
requires that an agency prepare a budgetary impact statement before 
promulgating a rule that includes a Federal mandate that may result in 
the expenditure by state, local and tribal governments, in the 
aggregate, or by the

[[Page 46182]]

private sector of $100 million or more in any one year. If a budgetary 
impact statement is required, section 205 of UMRA also requires an 
agency to identify and consider a reasonable number of regulatory 
alternatives before promulgating a rule.\2\ However, the UMRA applies 
only to rules for which an agency publishes a general notice of 
proposed rulemaking pursuant to the APA.\3\ As discussed above, HUD has 
determined for good cause that the APA does not require general notice 
and public comment on this rule and, therefore, the UMRA does not apply 
to this final rule.

    \1\ 2 U.S.C. 1532.
    \2\ 2 U.S.C. 1534.
    \3\ 2 U.S.C. 1532(a).

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This final rule will not have 
federalism implications and would not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive Order.

Environmental Review

    This final rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern, or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects

24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Home improvement, Housing standards, 
Incorporation by reference, Lead poisoning, Loan programs--housing and 
community development, Minimum property standards, Mortgage insurance, 
Organization and functions (Government agencies), Penalties, Reporting 
and recordkeeping requirements, Social security, Unemployment 
compensation, Wages.

24 CFR Part 2700

    Administrative procedures, Mortgage insurance, Practice and 
procedure, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, and under the authority 
of 42 U.S.C. 3535(d), amend title 24, parts 200 and 2700, as follows:


1. The authority citation for part 200 continues to read as follows:

    Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).

2. Revise Sec.  200.1301 to add paragraph (f) to read as follows:

Sec.  200.1301  Expiring programs--Savings clause.

* * * * *
    (f) No new emergency mortgage assistance, emergency mortgage relief 
loans, advances of credit or emergency mortgage relief payments, or any 
other type of assistance permitted under the Emergency Housing Act of 
1975, title I of the Emergency Homeowners' Relief Act (12 U.S.C. 2701), 
as amended by section 1496 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Pub. L. 111-203) is being provided under the 
programs listed below. Any existing emergency assistance, emergency 
mortgage relief loans, advances of credit or emergency mortgage relief 
payments under these programs will continue to be governed by the 
regulations in effect as they existed immediately before September 8, 
2014 (24 CFR part 2700):
    (1) Part 2700, Emergency Homeowners' Loan Program (12 U.S.C. 2701 
et seq.)
    (2) [Reserved]

PART 2700--[Removed]

3. Remove part 2700.

    Dated: July 30, 2014.
Helen R. Kanovsky,
Acting Deputy Secretary.
[FR Doc. 2014-18723 Filed 8-6-14; 8:45 am]