Notice of Availability of Hurricane Disaster Assistance-Section 502 Guaranteed Loan Program, 29912-29914 [E6-7901]
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29912
Federal Register / Vol. 71, No. 100 / Wednesday, May 24, 2006 / Notices
(December 24, 1970; 84 Stat. 1542, 7
U.S.C. 2321 et seq.) was established to
encourage the development of novel
varieties of sexually-reproduced plants
and make them available to the public,
providing intellectual property rights
(IPR) protection to those who breed,
develop, or discover such novel
varieties, and thereby promote progress
in agriculture in the public interest. The
PVPA is a voluntary user funded
program that grants intellectual property
ownership rights to breeders of new and
novel seed- and tuber-reproduced plant
varieties. To obtain these rights the
applicant must provide information that
shows the variety is eligible for
protection and that it is indeed new,
distinct, uniform, and stable, as the law
requires. Applicants are provided with
applications to identify the information
that is required to issue a certificate of
protection.
Need and Use of the Information: The
Agricultural Marketing Service will
collect information from the applicant
to be evaluated by examiners to
determine if the variety is eligible for
protection under the PVPA. If this
information were not collected there
will be no basis for issuing certificate of
protection, and no way for applicants to
request protection.
Description of Respondents: Business
or other for-profit; Not-for-profit
institutions; Federal Government.
Number of Respondents: 110.
Frequency of Responses: Reporting:
On occasion; Other (varies).
Total Burden Hours: 1,671.
Ruth Brown,
Departmental Information Collection
Clearance Officer.
[FR Doc. E6–7924 Filed 5–23–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Deschutes Provincial Advisory
Committee (DPAC)
Forest Service.
Notice of meeting.
AGENCY:
jlentini on PROD1PC65 with NOTICES
ACTION:
SUMMARY: The Deschutes Provincial
Advisory Committee will meet for a
field trip on June 7, 2006 starting at 9
a.m. at the Sisters Ranger District, Pine
Street and Hwy 20, Sisters, Oregon.
Topics for discussion include Glaze
Meadow Old Growth Restoration
Project, the Sisters Area Fuels
Reduction Project, Invasive Plants, B&B
Fire Restoration Project, and Metolius
Basin Vegetation Management
Stewardship. A Public Forum will be
available from 12:30 p.m. till 13 p.m.
All Deschutes Province Advisory
VerDate Aug<31>2005
19:46 May 23, 2006
Jkt 208001
Committee Meetings are open to the
public.
FOR FURTHER INFORMATION CONTACT:
Chris Mickle, Province Liaison,
Deschutes NF, Crescent RD, P.O. Box
208, Crescent, OR 97754, Phone (541)
433–3216.
Cecilia R. Seesholtz,
Deputy Forest Supervisor.
[FR Doc. 06–4806 Filed 5–23–06; 8:45 am]
development. Birch Branch, Holder
Cove and Rough Ridge campgrounds
will each offer a vault toilet facility,
visitor information board, self-service
fee collection site, bear resistant trash
containers, developed campsites with a
picnic table, fire ring and lantern post.
Campsites will be available on a first
come, first served basis.
BILLING CODE 3410–11–M
Dated: May 17, 2006.
H. Thomas Speaks, Jr.,
Cherokee National Forest Supervisor.
[FR Doc. 06–4805 Filed 5–23–06 8:45 am]
DEPARTMENT OF AGRICULTURE
BILLING CODE 3410–52–M
Forest Service
DEPARTMENT OF AGRICULTURE
Notice of New Recreation Fee Site;
Federal Lands Recreation
Enhancement Act, (Title VIII, Pub. L.
108–447)
Cherokee National Forest,
USDA Forest Service.
ACTION: Notice of new recreation fee
site.
AGENCY:
Cherokee National Forest will
begin charging a fee for overnight use at
three campgrounds presently under
construction at dispersed campsites 6, 7
and 8 in the Tellico River Corridor.
Birch Branch Campground and Holder
Cove Campground will be $10.00 per
campsite per day. Rough Ridge
Campground, which will accommodate
small groups, will be $20.00 campsite
per day. These developed campgrounds
will facilitate overnight use along the
Tellico River on the Tellico Ranger
District of Cherokee National Forest. Fee
revenue will support maintenance and
operation of the campgrounds and
future site improvements.
DATES: Construction of the three
campgrounds is scheduled to be
completed and the facilities opened to
the public at different times in 2006.
Overnight fees at all three sites will be
initiated January 1, 2007.
ADDRESSES: Forest Supervisor, Cherokee
National Forest, 2800 Ocoee Street N,
Cleveland, TN 37312.
FOR FURTHER INFORMATION CONTACT:
Doug Byerly, Recreation Fee
Coordinator, 423–476–9748.
SUPPLEMENTARY INFORMATION: The
Federal Recreation Lands Enhancement
Act (Title VII, Pub. L. 108–447) directed
the Secretary of Agriculture to publish
advance notice in the Federal Register
whenever new recreation fee areas are
established. Cherokee National Forest
presently manages ten overnight
recreation fee sites on the Tellico Ranger
District. Recreation fees for overnight
use range from $5.00 to $20.00 per
campsite per day based on the level of
SUMMARY:
PO 00000
Frm 00002
Fmt 4703
Sfmt 4703
Rural Housing Service
Notice of Availability of Hurricane
Disaster Assistance—Section 502
Guaranteed Loan Program
Rural Housing Service, USDA.
Notice of funding availability.
AGENCY:
ACTION:
SUMMARY: The Rural Housing Service,
an agency within the USDA Rural
Development mission area, provides
housing loan guarantees to rural
residents through its Section 502
Guaranteed Loan Program. The
Department of Defense, Emergency
Supplemental Appropriations to
Address Hurricanes in the Gulf of
Mexico and Pandemic Influenza Act,
2006 (Act), Pub. L. 109–148 (12/30/05)
provides USDA Rural Development
with additional authorities and
resources to address the damage caused
by hurricanes that occurred during the
2005 calendar year. The intent of this
NOFA is to introduce a temporary
Mortgage Recovery Advance Program
for existing Section 502 Guaranteed
Loan Program borrowers impacted by
certain 2005 hurricanes.
DATES: Effective Date: May 24, 2006 to
April 30, 2007.
FOR FURTHER INFORMATION CONTACT:
Stuart Walden, Senior Loan Specialist,
Section 502 Guaranteed Loan Program—
STOP 0784 (Room 2250), U.S.
Department of Agriculture, Rural
Housing Service, 1400 Independence
Ave. SW., Washington, DC 20250–0784.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The paperwork burden has been
cleared by the Office of Management
and Budget (OMB) under OMB Control
Number 0575–0078.
Overview
Based upon the extensiveness and the
magnitude of the damage to housing in
the Gulf Coast Region, USDA Rural
E:\FR\FM\24MYN1.SGM
24MYN1
jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 71, No. 100 / Wednesday, May 24, 2006 / Notices
Development’s Section 502 Guaranteed
Loan Program is making $500,000
available for assistance for Mortgage
Recovery Advances. These funds will be
made available on a first-come, firstserved basis. Additional funding for this
initiative is not expected. Funding for
this initiative will be derived from
funds made available through the Act.
A Notice of Funds Availability
(NOFA) related to the Act (71 FR
12671–74, March 13, 2006) provided
access to the following funding levels
for USDA Rural Development single
family housing programs in designated
disaster areas:
• $1,293,103,000 in deliverable
Section 502 guaranteed homeownership
funds;
• $175,593,000 in deliverable Section
502 direct homeownership funds;
• $34,188,000 in deliverable Section
504 direct repair/rehabilitation loans;
and
• $20,000,000 in deliverable Section
504 direct repair/rehabilitation grants.
Expanding the assistance made
available under the Act to cover
Mortgage Recovery Advances will
reduce, slightly, the amount of funds
made available for new Section 502
Guaranteed Loans provided for through
the Act’s provisions. It is anticipated
that there will be ample funding for new
loan Section 502 Guaranteed Loan
activity.
USDA Rural Development intends to
expand the single family housing
program options made available by the
Act and the March 13, 2006, NOFA
through the availability of a Mortgage
Recovery Advance program for existing
Section 502 Guaranteed Loan Program
borrowers ( herein referred to as
‘‘borrowers’’) who are in default on their
housing loans due to 2005 hurricanerelated impacts. Mortgage Recovery
Advances will reduce foreclosure rates
and overall guaranteed loan losses for
USDA Rural Development in affected
areas. As a home retention and loss
mitigation option, eligible delinquent
borrowers may receive a one-time
advance from their loan servicer in an
amount equal to not more than 12
months past due mortgage payments, to
include past due principal, interest,
taxes, and insurance. Mortgage Recovery
Advances are designed to assist
borrowers who do not currently have
the ability to support their normal
monthly mortgage obligation due to a
verifiable loss of income, increase in
living expenses attributable to the
hurricanes, and who have exhausted
other home retention loss mitigation
options. The advance would be applied
directly to the eligible borrowers’
delinquent mortgage installments in
VerDate Aug<31>2005
17:08 May 23, 2006
Jkt 208001
order to bring the loan into a current
and performing status.
Only approved lenders, as prescribed
in 7 CFR section 1980.308 may hold
Section 502 Guaranteed loans. Loan
servicers processing Mortgage Recovery
Advances described in the Notice may
not always be approved holding lenders.
Approved holding lenders are
responsible for the actions of any loan
servicer they may employ for servicing
section 502 guaranteed loans.
Upon application, loan servicers will
be reimbursed by USDA Rural
Development for eligible advances made
under the Mortgage Recovery Advance
program. The advance amount will be
recorded as a junior lien on the
property, and the borrower is required
to repay Rural Development at the
earlier of when the Section 502
Guaranteed Loan is paid off or when the
borrower no longer owns the property.
This debt will be evidenced by a
promissory note and mortgage or deed
of trust.
Designated Disaster Area
The designated disaster area shall be
those Presidentially-declared areas
eligible for individual assistance in the
states of Alabama, Florida, Louisiana,
Mississippi, and Texas in accordance
with the Robert T. Stafford Disaster
Relief and Emergency Assistance Act,
42 U.S.C. 5121 et seq.
Description of Assistance
Under the Section 502 Guaranteed
Loan Program’s Mortgage Recovery
Advance program, a loan servicer may,
as provided in this NOFA, advance
funds on behalf of a borrower in an
amount necessary to reinstate a
defaulted loan, and file a request to
USDA Rural Development to be
reimbursed for the amount of the
advance.
All Mortgage Recovery Advances will
require Agency approval prior to
settlement. Each eligible advance that is
executed by a loan servicer will entitle
them to a one-time compensation
payment of $500.00 from Rural
Development to defray expenses
associated with the action.
Borrower Qualifications
Borrowers must meet the following
requirements to be eligible for a
Mortgage Recovery Advance:
(1) The borrower’s loan default must
have resulted from one or more of the
2005 hurricanes, such as water or wind
damage to the dwelling, increase in
expenses, or loss of income as a result
of the disaster.
PO 00000
Frm 00003
Fmt 4703
Sfmt 4703
29913
(2) The borrower must have lived or
worked in a designated disaster area at
the time of the disaster.
(3) The borrower must have been
current on their Section 502 Guaranteed
Loan, including those accounts
performing under a repayment plan or
forbearance agreement, prior to the
disaster.
(4) The borrower’s account must be in
arrears at least four but not more than
twelve installments. The loan servicer’s
Mortgage Recovery Advance will
include, in addition to the initial four
delinquent installments, only the
amount necessary to meet the
borrower’s arrearages, not to exceed the
equivalent of 12 months of past due
principal, interest, taxes, and hazard
insurance. The lender or holder is
requested to perform an escrow analysis
prior to filing the claim to ensure that
the partial claim payment made on
behalf of the mortgagor represents, as
accurately as possible, the escrow
amounts required for taxes and
insurance.
(5) The borrower must not be eligible
for other home retention loss mitigation
options, such a repayment plan, loan
forbearance arrangement, or loan
modification. Accounts that are fewer
than four installments past due should
be serviced using these traditional loss
mitigation workout tools.
(6) The account must not have been
referred for foreclosure.
(7) The borrower must not currently
have the ability to support their normal
monthly mortgage obligation due to the
verifiable loss of income or increase in
living expenses or costs from property
damage to their principal residence
attributable to the disaster.
(8) The borrower must continue
occupying the property as a primary
residence or intend to resume
occupancy on a permanent basis when
the residence becomes habitable. The
impacted property must be habitable or
capable of being repaired to be
habitable.
(9) The borrower must have the
demonstrated ability to resume making
their regularly scheduled mortgage
payment once the Mortgage Recovery
Advance has been applied to their
account.
Loan Servicer Requirements
General liquidation requirements for
Section 502 Guaranteed Loans are found
in 7 CFR section 1980.374. This
provision requires that loan servicers
submit a plan to USDA Rural
Development when an account is 90
days or greater delinquent, and a
method other than foreclosure will be
used to resolve the delinquency.
E:\FR\FM\24MYN1.SGM
24MYN1
29914
Federal Register / Vol. 71, No. 100 / Wednesday, May 24, 2006 / Notices
jlentini on PROD1PC65 with NOTICES
Loan servicers must demonstrate that
borrowers eligible for the Mortgage
Recovery Advance program have homes
that are in a habitable condition or will
be repaired to a habitable condition, and
that they can resume making their
regularly scheduled mortgage loan
payments after the Mortgage Recovery
Advance is paid, using the following
standards:
(a) Estimate the borrower’s
anticipated monthly net income for the
same period, making necessary
adjustments for income fluctuations.
(b) Estimate the borrower’s normal
monthly living expenses (food, utilities,
etc.) including debt service on the
mortgage and other scheduled and
anticipated obligations.
(c) Subtract expenses from income to
determine the amount of surplus
income available each month.
Loan Servicers must receive prior
approval from USDA Rural
Development before they make a
Mortgage Recovery Advance with a
defaulted borrower.
Loan servicers will be required to
have the borrowers execute a Mortgage
Recovery Advance promissory note and
mortgage or deed-of-trust perfecting a
lien for USDA Rural Development for
the amount of the Mortgage Recovery
Advance. These RD forms are available
by contacting the USDA Rural
Development, Single Family Housing
Guaranteed Loan Division, at (202) 690–
4507, or by e-mail at:
SFHGLD@wdc.usda.gov. Loan servicers
will file the mortgage or deed of trust in
the appropriate local real estate records.
Repayment Terms
(a) The Mortgage Recovery Advance
note and subordinate mortgage or deedof-trust must be recorded in favor of
USDA Rural Development and will be
interest free.
(b) No monthly or periodic payments
are required; however, borrowers may
voluntarily submit partial payments
without incurring any prepayment
penalty.
(c) The note is due at the earlier of:
(1) The payoff of the first lien
mortgage and the guaranteed note; or
(2) When the borrower transfers title
to the property by voluntary or
involuntary means.
(d) USDA Rural Development will
collect this Federal debt from the
borrower by any available means if the
advance is not repaid based on the
terms outlined in the promissory note
and mortgage or deed-of-trust.
(e) Repayments of all or parts of
Mortgage Recovery Advances must be
collected and remitted to Rural
Development by the loan servicer, or
VerDate Aug<31>2005
17:08 May 23, 2006
Jkt 208001
they may be remitted directly to USDA
Rural Development by the borrower. To
remit a payment via check, payable to
USDA Rural Development, include the
check and along with the borrower’s
name and taxpayer identification (ID)
number to: USDA Rural Development,
Cash Management Branch, FC–363,
Attention: Mortgage Recovery Advance,
P.O. Box 200011, St. Louis, Missouri
63120–0011.
To remit a payment electronically,
contact USDA Rural Development’s
Cash Management Branch at (314) 457–
4023 and ask for instructions for
Remittance Express.
Filing a Claim for Reimbursement
A claim for reimbursement of the
Mortgage Recovery Advance program
must be submitted to the Agency within
60 days of the advance being executed
by the borrower through their signature
on the promissory note, but no later
than April 30, 2007.
When filing the claim for
reimbursement to USDA Rural
Development, the loan servicer must:
(1) Submit a copy of the promissory
note and filed mortgage or deed of trust;
(2) Include a summary of the amount
of the funds advanced, including the
monthly principal, interest, taxes, and
insurance amount, and other account
information indicating the borrower’s
arrearage before the advance as well as
the present status of the account as of
the date of the advance;
(3) Provide the name, address, and tax
ID number for the loan servicer; and
(4) Provide the name, address, and
phone number of a contact person for
the loan servicer that can answer
questions about the reimbursement
request.
The Agency will pay the one-time
$500 payment to the servicer with the
reimbursement.
Subsequent Borrower Default
(1) Borrowers will be eligible for only
one Mortgage Recovery Advance.
(2) If a borrower defaults on their loan
after receiving a Mortgage Recovery
Advance and a loss claim is filed by the
loan servicer due to the default, any
reimbursement issued for the Mortgage
Recovery Advance to the servicer on
behalf of the borrower will be credited
toward the maximum loan guarantee
amount payable by USDA Rural
Development under the guarantee.
Emergency Declaration
Consistent with Proclamation 7925
issued by President Bush, the USDA
Rural Development Mission Area has
determined that it would be
impracticable, unnecessary, and
PO 00000
Frm 00004
Fmt 4703
Sfmt 4703
contrary to public interest to delay the
effective date of this Notice for any
reason.
Dated: May 18, 2006.
David J. Villano,
Acting Administrator, Rural Housing Service.
[FR Doc. E6–7901 Filed 5–23–06; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Information Collection Activity;
Comment Request
Rural Utilities Service, USDA.
Notice and request for
comments.
AGENCY:
ACTION:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35, as amended), the
Rural Utilities Service an agency
delivering the U.S. Department of
Agriculture (USDA) Rural Development
Utilities Programs, invites comments on
this information collection for which
approval from the Office of Management
and Budget (OMB) will be requested.
DATES: Comments on this notice must be
received by July 24, 2006.
FOR FURTHER INFORMATION CONTACT:
Richard C. Annan, Director, Program
Development and Regulatory Analysis,
Rural Utilities Service, 1400
Independence Ave., SW., STOP 1522,
Room 5818 South Building,
Washington, DC 20250–1522.
Telephone: (202) 720–0784. FAX: (202)
720–8435.
SUPPLEMENTARY INFORMATION: The Office
of Management and Budget’s (OMB)
regulation (5 CFR part 1320)
implementing provisions of the
Paperwork Reduction Act of 1995 (Pub.
L. 104–13) requires that interested
members of the public and affected
agencies have an opportunity to
comment on information collection and
recordkeeping activities (see 5 CFR
1320.8(d)). This notice identifies an
information collection that RUS is
submitting to OMB for extension.
Comments are invited on: (a) 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; (b) the accuracy of
the Agency’s estimate of the burden of
the proposed collection of information
including the validity of the
methodology and assumptions used; (c)
ways to enhance the quality, utility and
clarity of the information to be
collected; and (d) ways to minimize the
E:\FR\FM\24MYN1.SGM
24MYN1
]]>Agencies
[Federal Register Volume 71, Number 100 (Wednesday, May 24, 2006)]
[Notices]
[Pages 29912-29914]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7901]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Availability of Hurricane Disaster Assistance--Section
502 Guaranteed Loan Program
AGENCY: Rural Housing Service, USDA.
ACTION: Notice of funding availability.
-----------------------------------------------------------------------
SUMMARY: The Rural Housing Service, an agency within the USDA Rural
Development mission area, provides housing loan guarantees to rural
residents through its Section 502 Guaranteed Loan Program. The
Department of Defense, Emergency Supplemental Appropriations to Address
Hurricanes in the Gulf of Mexico and Pandemic Influenza Act, 2006
(Act), Pub. L. 109-148 (12/30/05) provides USDA Rural Development with
additional authorities and resources to address the damage caused by
hurricanes that occurred during the 2005 calendar year. The intent of
this NOFA is to introduce a temporary Mortgage Recovery Advance Program
for existing Section 502 Guaranteed Loan Program borrowers impacted by
certain 2005 hurricanes.
DATES: Effective Date: May 24, 2006 to April 30, 2007.
FOR FURTHER INFORMATION CONTACT: Stuart Walden, Senior Loan Specialist,
Section 502 Guaranteed Loan Program--STOP 0784 (Room 2250), U.S.
Department of Agriculture, Rural Housing Service, 1400 Independence
Ave. SW., Washington, DC 20250-0784.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The paperwork burden has been cleared by the Office of Management
and Budget (OMB) under OMB Control Number 0575-0078.
Overview
Based upon the extensiveness and the magnitude of the damage to
housing in the Gulf Coast Region, USDA Rural
[[Page 29913]]
Development's Section 502 Guaranteed Loan Program is making $500,000
available for assistance for Mortgage Recovery Advances. These funds
will be made available on a first-come, first-served basis. Additional
funding for this initiative is not expected. Funding for this
initiative will be derived from funds made available through the Act.
A Notice of Funds Availability (NOFA) related to the Act (71 FR
12671-74, March 13, 2006) provided access to the following funding
levels for USDA Rural Development single family housing programs in
designated disaster areas:
$1,293,103,000 in deliverable Section 502 guaranteed
homeownership funds;
$175,593,000 in deliverable Section 502 direct
homeownership funds;
$34,188,000 in deliverable Section 504 direct repair/
rehabilitation loans; and
$20,000,000 in deliverable Section 504 direct repair/
rehabilitation grants.
Expanding the assistance made available under the Act to cover
Mortgage Recovery Advances will reduce, slightly, the amount of funds
made available for new Section 502 Guaranteed Loans provided for
through the Act's provisions. It is anticipated that there will be
ample funding for new loan Section 502 Guaranteed Loan activity.
USDA Rural Development intends to expand the single family housing
program options made available by the Act and the March 13, 2006, NOFA
through the availability of a Mortgage Recovery Advance program for
existing Section 502 Guaranteed Loan Program borrowers ( herein
referred to as ``borrowers'') who are in default on their housing loans
due to 2005 hurricane-related impacts. Mortgage Recovery Advances will
reduce foreclosure rates and overall guaranteed loan losses for USDA
Rural Development in affected areas. As a home retention and loss
mitigation option, eligible delinquent borrowers may receive a one-time
advance from their loan servicer in an amount equal to not more than 12
months past due mortgage payments, to include past due principal,
interest, taxes, and insurance. Mortgage Recovery Advances are designed
to assist borrowers who do not currently have the ability to support
their normal monthly mortgage obligation due to a verifiable loss of
income, increase in living expenses attributable to the hurricanes, and
who have exhausted other home retention loss mitigation options. The
advance would be applied directly to the eligible borrowers' delinquent
mortgage installments in order to bring the loan into a current and
performing status.
Only approved lenders, as prescribed in 7 CFR section 1980.308 may
hold Section 502 Guaranteed loans. Loan servicers processing Mortgage
Recovery Advances described in the Notice may not always be approved
holding lenders. Approved holding lenders are responsible for the
actions of any loan servicer they may employ for servicing section 502
guaranteed loans.
Upon application, loan servicers will be reimbursed by USDA Rural
Development for eligible advances made under the Mortgage Recovery
Advance program. The advance amount will be recorded as a junior lien
on the property, and the borrower is required to repay Rural
Development at the earlier of when the Section 502 Guaranteed Loan is
paid off or when the borrower no longer owns the property. This debt
will be evidenced by a promissory note and mortgage or deed of trust.
Designated Disaster Area
The designated disaster area shall be those Presidentially-declared
areas eligible for individual assistance in the states of Alabama,
Florida, Louisiana, Mississippi, and Texas in accordance with the
Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42
U.S.C. 5121 et seq.
Description of Assistance
Under the Section 502 Guaranteed Loan Program's Mortgage Recovery
Advance program, a loan servicer may, as provided in this NOFA, advance
funds on behalf of a borrower in an amount necessary to reinstate a
defaulted loan, and file a request to USDA Rural Development to be
reimbursed for the amount of the advance.
All Mortgage Recovery Advances will require Agency approval prior
to settlement. Each eligible advance that is executed by a loan
servicer will entitle them to a one-time compensation payment of
$500.00 from Rural Development to defray expenses associated with the
action.
Borrower Qualifications
Borrowers must meet the following requirements to be eligible for a
Mortgage Recovery Advance:
(1) The borrower's loan default must have resulted from one or more
of the 2005 hurricanes, such as water or wind damage to the dwelling,
increase in expenses, or loss of income as a result of the disaster.
(2) The borrower must have lived or worked in a designated disaster
area at the time of the disaster.
(3) The borrower must have been current on their Section 502
Guaranteed Loan, including those accounts performing under a repayment
plan or forbearance agreement, prior to the disaster.
(4) The borrower's account must be in arrears at least four but not
more than twelve installments. The loan servicer's Mortgage Recovery
Advance will include, in addition to the initial four delinquent
installments, only the amount necessary to meet the borrower's
arrearages, not to exceed the equivalent of 12 months of past due
principal, interest, taxes, and hazard insurance. The lender or holder
is requested to perform an escrow analysis prior to filing the claim to
ensure that the partial claim payment made on behalf of the mortgagor
represents, as accurately as possible, the escrow amounts required for
taxes and insurance.
(5) The borrower must not be eligible for other home retention loss
mitigation options, such a repayment plan, loan forbearance
arrangement, or loan modification. Accounts that are fewer than four
installments past due should be serviced using these traditional loss
mitigation workout tools.
(6) The account must not have been referred for foreclosure.
(7) The borrower must not currently have the ability to support
their normal monthly mortgage obligation due to the verifiable loss of
income or increase in living expenses or costs from property damage to
their principal residence attributable to the disaster.
(8) The borrower must continue occupying the property as a primary
residence or intend to resume occupancy on a permanent basis when the
residence becomes habitable. The impacted property must be habitable or
capable of being repaired to be habitable.
(9) The borrower must have the demonstrated ability to resume
making their regularly scheduled mortgage payment once the Mortgage
Recovery Advance has been applied to their account.
Loan Servicer Requirements
General liquidation requirements for Section 502 Guaranteed Loans
are found in 7 CFR section 1980.374. This provision requires that loan
servicers submit a plan to USDA Rural Development when an account is 90
days or greater delinquent, and a method other than foreclosure will be
used to resolve the delinquency.
[[Page 29914]]
Loan servicers must demonstrate that borrowers eligible for the
Mortgage Recovery Advance program have homes that are in a habitable
condition or will be repaired to a habitable condition, and that they
can resume making their regularly scheduled mortgage loan payments
after the Mortgage Recovery Advance is paid, using the following
standards:
(a) Estimate the borrower's anticipated monthly net income for the
same period, making necessary adjustments for income fluctuations.
(b) Estimate the borrower's normal monthly living expenses (food,
utilities, etc.) including debt service on the mortgage and other
scheduled and anticipated obligations.
(c) Subtract expenses from income to determine the amount of
surplus income available each month.
Loan Servicers must receive prior approval from USDA Rural
Development before they make a Mortgage Recovery Advance with a
defaulted borrower.
Loan servicers will be required to have the borrowers execute a
Mortgage Recovery Advance promissory note and mortgage or deed-of-trust
perfecting a lien for USDA Rural Development for the amount of the
Mortgage Recovery Advance. These RD forms are available by contacting
the USDA Rural Development, Single Family Housing Guaranteed Loan
Division, at (202) 690-4507, or by e-mail at: SFHGLD@wdc.usda.gov. Loan
servicers will file the mortgage or deed of trust in the appropriate
local real estate records.
Repayment Terms
(a) The Mortgage Recovery Advance note and subordinate mortgage or
deed-of-trust must be recorded in favor of USDA Rural Development and
will be interest free.
(b) No monthly or periodic payments are required; however,
borrowers may voluntarily submit partial payments without incurring any
prepayment penalty.
(c) The note is due at the earlier of:
(1) The payoff of the first lien mortgage and the guaranteed note;
or
(2) When the borrower transfers title to the property by voluntary
or involuntary means.
(d) USDA Rural Development will collect this Federal debt from the
borrower by any available means if the advance is not repaid based on
the terms outlined in the promissory note and mortgage or deed-of-
trust.
(e) Repayments of all or parts of Mortgage Recovery Advances must
be collected and remitted to Rural Development by the loan servicer, or
they may be remitted directly to USDA Rural Development by the
borrower. To remit a payment via check, payable to USDA Rural
Development, include the check and along with the borrower's name and
taxpayer identification (ID) number to: USDA Rural Development, Cash
Management Branch, FC-363, Attention: Mortgage Recovery Advance, P.O.
Box 200011, St. Louis, Missouri 63120-0011.
To remit a payment electronically, contact USDA Rural Development's
Cash Management Branch at (314) 457-4023 and ask for instructions for
Remittance Express.
Filing a Claim for Reimbursement
A claim for reimbursement of the Mortgage Recovery Advance program
must be submitted to the Agency within 60 days of the advance being
executed by the borrower through their signature on the promissory
note, but no later than April 30, 2007.
When filing the claim for reimbursement to USDA Rural Development,
the loan servicer must:
(1) Submit a copy of the promissory note and filed mortgage or deed
of trust;
(2) Include a summary of the amount of the funds advanced,
including the monthly principal, interest, taxes, and insurance amount,
and other account information indicating the borrower's arrearage
before the advance as well as the present status of the account as of
the date of the advance;
(3) Provide the name, address, and tax ID number for the loan
servicer; and
(4) Provide the name, address, and phone number of a contact person
for the loan servicer that can answer questions about the reimbursement
request.
The Agency will pay the one-time $500 payment to the servicer with
the reimbursement.
Subsequent Borrower Default
(1) Borrowers will be eligible for only one Mortgage Recovery
Advance.
(2) If a borrower defaults on their loan after receiving a Mortgage
Recovery Advance and a loss claim is filed by the loan servicer due to
the default, any reimbursement issued for the Mortgage Recovery Advance
to the servicer on behalf of the borrower will be credited toward the
maximum loan guarantee amount payable by USDA Rural Development under
the guarantee.
Emergency Declaration
Consistent with Proclamation 7925 issued by President Bush, the
USDA Rural Development Mission Area has determined that it would be
impracticable, unnecessary, and contrary to public interest to delay
the effective date of this Notice for any reason.
Dated: May 18, 2006.
David J. Villano,
Acting Administrator, Rural Housing Service.
[FR Doc. E6-7901 Filed 5-23-06; 8:45 am]
BILLING CODE 3410-XV-P
