30-Day Notice of Proposed Information Collection: Application for FHA Insured Mortgages; OMB Control No.: 2502-0059

Published date19 May 2020
Citation85 FR 29959
Record Number2020-10659
SectionNotices
CourtHousing And Urban Development Department
Federal Register, Volume 85 Issue 97 (Tuesday, May 19, 2020)
[Federal Register Volume 85, Number 97 (Tuesday, May 19, 2020)]
                [Notices]
                [Pages 29959-29961]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-10659]
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                DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                [Docket No. FR-7024-N-22]
                30-Day Notice of Proposed Information Collection: Application for
                FHA Insured Mortgages; OMB Control No.: 2502-0059
                AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
                Commissioner, HUD.
                ACTION: Notice.
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                SUMMARY: HUD has submitted the proposed information collection
                requirement described below to the Office of Management and Budget
                (OMB) for review, in accordance with the Paperwork Reduction Act. The
                purpose of this notice is to allow for an additional 30 days of public
                comment.
                DATES: Comments Due Date: June 18, 2020.
                ADDRESSES: Interested persons are invited to submit comments regarding
                this proposal. Written comments and recommendations for the proposed
                information collection should be sent within 30 days of publication of
                this notice to www.reginfo.gov/public/do/Start Printed Page
                15501PRAMain. Find this particular information collection by selecting
                ``Currently under 30-day Review--Open for Public Comments'' or by using
                the search function.
                FOR FURTHER INFORMATION CONTACT: Colette Pollard, US 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]. 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 Ms. Pollard.
                Stakeholders may also view the proposed certification at: https://www.hud.gov/program_offices/housing/sfh/SFH_policy_drafts.
                SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is
                seeking approval from OMB for the information collection described in
                Section A. The Federal Register notice that solicited public comment on
                the information collection for a period of 60 days was published on
                October 25, 2019 at 84 FR 57464.
                A. Overview of Information Collection
                 Title of Information Collection: Application for FHA Insured
                Mortgages.
                 OMB Approval Number: 2502-0059.
                 Type of Request: Revision of currently approved collection.
                 Form Number: HUD-92900-A, HUD-92900-B, HUD-92900-LT, HUD-92561,
                Model Notice for Informed Consumer Choice Disclosure, Model Pre-
                Insurance Review/Checklist, Settlement Certification (previously known
                as Addendum to HUD-1) and HUD-92544.
                 Description of the need for the information and proposed use:
                Specific forms and related documents are needed to determine the
                eligibility of the borrower and proposed mortgage transaction for FHA's
                insurance
                [[Page 29960]]
                endorsement. The Uniform Residential Loan Application (URLA) and form
                HUD-92900-A (Addendum to the URLA) are used in every case by the lender
                to make application for FHA mortgage insurance. Together they describe
                the parties involved, the property, and the conditions and terms on
                which the mortgage insurance will be based. The form HUD-92900-A was
                updated to: Revise certifications to reflect regulations and other
                legal requirements; ensure accuracy of information provided to FHA;
                reduce uncertainty in the industry; maintain the ability to enforce FHA
                program requirements; and remove VA requirements and certifications
                from the 92900-A. Lenders seeking FHA's insurance prepare certain forms
                to collect data.
                 Respondents (i.e. affected public): Individuals (loan applicants)
                and Business or other for-profit (lenders).
                 Estimated Number of Respondents: 15,871.
                 Estimated Number of Responses: 5,798,629.
                 Frequency of Response: 365.3631781236.
                 Average Hours per Response: 0.1194309943.
                 Total Estimated Burdens: 692,542.
                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.
                 (5) ways to minimize the burden of the collection of information on
                those who are to respond, including the use of automated collection
                techniques or other forms of information technology.
                 HUD encourages interested parties to submit comment in response to
                these questions.
                C. Authority
                 Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C.
                Chapter 35.
                D. Summary of Form HUD-92900-A Comments and HUD Responses
                 Comment: A commenter requested copies of all forms included in the
                collection for review.
                 HUD Response: HUD emailed the requested forms to the commenter.
                 Comment: A commenter asked how these changes would impact the
                Veteran's Administration URLA, VA Form 26-1802a.
                 HUD Response: HUD and the Department of Veterans Affairs (VA) both
                use the HUD/VA Addendum to Uniform Residential Application, but the
                form has two different form numbers and expiration dates. VA uses VA
                Form 26-1802a, which expires 02/29/2020 and HUD uses Form HUD-99200-A,
                which expires on 09/30/2022. HUD has notified VA that it was making
                changes to HUD's version of the form to ensure accuracy of information
                provided to HUD; reduce uncertainty in the industry; and maintain the
                ability to enforce HUD program requirements by customizing the
                requirements and loan-level certifications. Once, HUD's changes are
                final and effective, the form HUD-92900-A must be used for HUD loans.
                However, these changes do not affect VA form 26-1802a. HUD does not
                have any information on the status of VA Form 26-1802a.
                 Comment: A commenter shared their expectation that the revised
                loan-level certification, along with related reforms, will increase
                borrower access to FHA mortgage credit, encourage depository
                institutions to return to FHA lending, and maximize compliance with FHA
                requirements.
                 HUD Response: HUD appreciates this feedback and shares the
                expectations for increased access to and compliance with FHA
                requirements.
                 Comment: A commenter suggested that HUD add a knowledge qualifier
                in the Loan Level Certification by replacing ``I certify that the
                statements above are materially correct.'' with ``I certify, to the
                best of my knowledge, that the above statements are materially
                correct.''
                 HUD Response: HUD appreciates this comment. HUD does not believe
                the knowledge qualifier should be included in the certification
                statement because the Department has already committed to taking into
                account knowledge as part of the Defect Taxonomy, which provides the
                framework for the evaluation of all defects in loan origination.
                 Comment: A commenter suggested that the proposed Loan-Level
                Certification is too inclusive because the referenced sections are
                overbroad. The Commenter suggested editing the certification to read
                ``to the extent that no material defect exists in connection with the
                underwriting of this mortgage such that the approval is inconsistent
                with the Handbook Section and with FHA standards, policies and
                guidance.''
                 HUD Response: HUD appreciates this comment. HUD does not believe
                the suggested language is necessary because the certification as
                proposed by HUD already captures the approval of the mortgage in
                accordance with FHA requirements and also provides that analysis of any
                defect would be made in light of the Defect Taxonomy. HUD does not
                believe that any greater clarity is afforded by the language proffered
                by the commenter.
                 Comment: A commenter stated that the Certification's references to
                the HUD Defect Taxonomy creates an ambiguity that suggests that the
                Taxonomy defines the limit of mortgagee liability only when the
                Department is involved. To be consistent with the Taxonomy and to
                support the program and mortgagees, the Commenter recommends that the
                reference should be more generic.
                 HUD Response: HUD does not believe that the reference to the Defect
                Taxonomy creates any ambiguity. HUD's Defect Taxonomy does not itself
                establish or limit liability for violations of HUD requirements, rather
                the Defect Taxonomy demonstrates HUD's commitment to evaluation of any
                defects within the confines of the framework of the Taxonomy.
                 Comment: A commenter provided their support for HUD's MOU with DOJ
                and offered assistance with implementation. Specifically the commenter
                suggested that the Department: (1) Define the numerical trigger that
                accounts for differences in lender size and volume, along with
                attaching a defined time period over which the trigger will be
                assessed; and (2) clarify that ``aggravating factors'' means
                ``systematic and widespread violations'' and only ones that form a
                ``pattern'' of violations; and (3) specifically define the term
                ``violation'' to clarify that it means a final Department finding.
                 HUD Response: HUD appreciates the comment, but this issue is
                outside of the proposed information collection in this notice.
                 Comment: A commenter stated that under the MOU, the MRB will play
                an outsized role in acting as gatekeeper and administrator of the new
                focus on administrative enforcement, rather than
                [[Page 29961]]
                on abusive FCA suits. The Commenter welcomes this development but
                believes with that increased role comes a need to design an MRB process
                that is open, fair to lenders, and transparent.
                 HUD Response: HUD appreciates the comment, but this issue is
                outside of the proposed information collection in this notice.
                 Dated: May 13, 2020.
                Colette Pollard,
                Department Reports Management Officer, Office of the Chief Information
                Officer.
                [FR Doc. 2020-10659 Filed 5-18-20; 8:45 am]
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