Real Estate Settlement Procedures Act (RESPA): Rule To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs; Further Deferred Applicability Date for the Revised Definition of “Required Use” and Solicitation of Public Comment on Withdrawal of Required Use Provision, 10172-10174 [E9-5221]
Download as PDF
<![CDATA[
10172
Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Rules and Regulations
Aerospace Defense Command Region
(CONR).’’ The FAA is taking this action
in response to a request from the United
States Air Force (USAF), supported by
United States Customs and Border
Protection (legacy United States
Customs Service), to reflect an
administrative change of responsibility
for the restricted area. There are no
changes to the boundaries; designated
altitudes; time of designation; or
activities conducted within the affected
restricted area.
DATES: Effective Date: 0901 UTC, May 7,
2009.
FOR FURTHER INFORMATION CONTACT:
Colby Abbott, Airspace and Rules
Group, Office of System Operations
Airspace and AIM, Federal Aviation
Administration, 800 Independence
Avenue, SW., Washington, DC 20591;
telephone: (202) 267–8783.
SUPPLEMENTARY INFORMATION:
History
On December 10, 2008, the USAF
requested that the FAA change the using
agency for R–6320 from, ‘‘United States
Customs Service’’ to ‘‘Continental North
American Aerospace Defense Command
Region (CONR).’’ The USAF request was
based on their interest in retaining the
restricted area and expected funding in
the future to purchase and house
another aerostat system within that
restricted airspace. United States
Customs and Border Protection (legacy
United States Customs Service)
confirmed they have no interest in
maintaining operational control over R–
6320 and agreed to relinquish the using
agency responsibility to CONR.
Coordination with Houston Air Route
Traffic Control Center was effected prior
to this using agency change request
being submitted by the USAF.
Section 73.63 of 14 CFR Part 73 was
republished in FAA Order 7400.8R,
dated February 5, 2009.
The Rule
This action amends Title 14 Code of
Federal Regulations (14 CFR) part 73 by
revising the using agency listed for R–
6320, Matagorda, TX; transferring using
agency responsibility for R–6320 from
‘‘United States Customs Service’’ to
‘‘Continental North American
Aerospace Defense Command Region
(CONR).’’ This is an administrative
change and does not affect the
boundaries, designated altitudes, or
activities conducted within the
restricted area; therefore, notice and
public procedures under 5 U.S.C. 553(b)
are unnecessary.
The FAA has determined that this
action only involves an established
VerDate Nov<24>2008
14:58 Mar 09, 2009
Jkt 217001
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current. Therefore, this regulation: (1) Is
not a ‘‘significant regulatory action’’
under Executive Order 12866; (2) is not
a ‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is so minimal. Since this is a
routine matter that will only affect air
traffic procedures and air navigation, it
is certified that this rule, when
promulgated, will not have a significant
economic impact on a substantial
number of small entities under the
criteria of the Regulatory Flexibility Act.
Environmental Review
The FAA has determined that this
action qualifies for categorical exclusion
under the National Environmental
Policy Act in accordance with 311d.,
FAA Order 1050.1E, Environmental
Impacts: Policies and Procedures. This
airspace action is not expected to cause
any potentially significant
environmental impacts, and no
extraordinary circumstances exist that
warrant preparation of an
environmental assessment.
List of Subjects in 14 CFR Part 73
Airspace, Prohibited areas, Restricted
areas.
Adoption of the Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR part 73, as follows:
■
PART 73—SPECIAL USE AIRSPACE
1. The authority citation for part 73
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
§ 73.63
■
*
[Amended]
2. § 73.63 is amended as follows:
*
*
*
*
R–6320
Matagorda, TX
[Amended]
By removing the words ‘‘Using
agency. United States Customs Service’’
and inserting the words ‘‘Using agency.
Continental North American Aerospace
Defense Command Region (CONR).’’
*
*
*
*
*
Issued in Washington, DC, March 2, 2009.
Edith V. Parish,
Manager, Airspace and Rules Group.
[FR Doc. E9–4948 Filed 3–9–09; 8:45 am]
BILLING CODE 4910–13–P
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Part 3500
[Docket No. FR–5180–F–05]
RIN 2502–AI61
Real Estate Settlement Procedures Act
(RESPA): Rule To Simplify and
Improve the Process of Obtaining
Mortgages and Reduce Consumer
Settlement Costs; Further Deferred
Applicability Date for the Revised
Definition of ‘‘Required Use’’ and
Solicitation of Public Comment on
Withdrawal of Required Use Provision
AGENCY: Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, HUD.
ACTION: Final rule; request for
comments.
SUMMARY: This final rule delays the
effective date of the definition of
‘‘required use’’ as revised by HUD’s
November 17, 2008, final rule amending
its RESPA regulations, until July 16,
2009. The November 17, 2008, final rule
revised HUD’s RESPA regulations to
further the purposes of RESPA by
requiring more timely and effective
disclosures related to mortgage
settlement costs for federally related
mortgage loans to consumers. The final
rule revised the existing definition of
‘‘required use,’’ which revision was
directed to enhancing protections for
consumers from certain practices
conducted by affiliated business
arrangements. The revised definition of
‘‘required use’’ would have become
effective on January 16, 2009. However,
on January 15, 2009, HUD published a
final rule that delayed the effective date
of the definition of ‘‘required use’’ from
January 16, 2009, to April 16, 2009, due
to litigation by the National Association
of Home Builders, et al., around the
time of issuance of the final rule. For
this same reason, HUD is further
delaying the effective date of required
use until July 16, 2009.
In this rule, HUD also solicits
comment on withdrawing the revised
definition of ‘‘required use’’ from the
November 17, 2008, final rule. HUD will
consider these comments before
pursuing new rulemaking process on
this definition. Since promulgating the
rule on November 17, 2008, HUD has
determined to reevaluate the scope and
operation of the required use provision.
New rulemaking would give HUD the
opportunity to present for public
consideration a new proposal based
upon HUD’s reevaluation of the
required use provision to help ensure
better consumer protections.
E:\FR\FM\10MRR1.SGM
10MRR1
Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Rules and Regulations
DATES: The amendment to § 3500.1 is
effective March 10, 2009. The effective
date of the definition of ‘‘required use’’
in § 3500.2, as revised by HUD’s final
rule published on November 17, 2008,
at 73 FR 68204, and further delayed by
final rule published on January 15,
2009, at 74 FR 2369, is further delayed
to July 16, 2009.
Comment Due Date: April 9, 2009.
ADDRESSES: Interested persons are
invited to submit comments regarding
this rule to the Regulations Division,
Office of General Counsel, 451 7th
Street, SW., Room 10276, Department of
Housing and Urban Development,
Washington, DC 20410–0500.
Communications must refer to the above
docket number and title. There are two
methods for submitting public
comments. All submissions must refer
to the above docket number and title.
1. Submission of Comments by Mail.
Comments may be submitted by mail to
the Regulations Division, Office of
General Counsel, Department of
Housing and Urban Development, 451
7th Street, SW., Room 10276,
Washington, DC 20410–0500.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make them immediately available to the
public. Comments submitted
electronically through the https://
www.regulations.gov Web site can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
Note: To receive consideration as public
comments, comments must be submitted
through one of the two methods specified
above. Again, all submissions must refer to
the docket number and title of the rule.
No Facsimile Comments. Facsimile
(FAX) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments and communications
submitted to HUD will be available for
public inspection and copying between
8 a.m. and 5 p.m. weekdays at the above
address. Due to security measures at the
HUD Headquarters building, an advance
appointment to review the public
comments must be scheduled by calling
the Regulations Division at 202–708–
3055 (this is not a toll-free number).
VerDate Nov<24>2008
14:58 Mar 09, 2009
Jkt 217001
Individuals with speech or hearing
impairments may access this number
through TTY by calling the Federal
Information Relay Service at 800–877–
8339. Copies of all comments submitted
are available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Ivy
Jackson, Director, or Barton Shapiro,
Deputy Director, Office of RESPA and
Interstate Land Sales, Office of Housing,
Department of Housing and Urban
Development, 451 7th Street, SW.,
Room 9158, Washington, DC 20410–
8000; telephone 202–708–0502 (this is
not a toll-free telephone number).
Persons with hearing or speech
impairments may access this number
through TTY by calling the toll-free
Federal Information Relay Service at
800–877–8339.
SUPPLEMENTARY INFORMATION: On
November 17, 2008 (73 FR 68204), HUD
published a final rule amending its
regulations to further the purposes of
the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2601–2617) by
requiring more timely and effective
disclosures related to mortgage
settlement costs for federally related
mortgage loans to consumers. The final
rule followed publication of a March 14,
2008, proposed rule (73 FR 14030) and
made changes in response to public
comment and in further consideration of
certain issues by HUD. Additional
information regarding the regulatory
amendments, and the changes made by
HUD at the final rule stage, is provided
in the preamble to the November 17,
2008, final rule.
The November 17, 2008, final rule
became effective on January 16, 2009,
but provided a longer transition period
for the majority of the new
requirements. Other provisions,
however, were scheduled to take effect
on January 16, 2009. Among regulatory
changes identified as being applicable
upon the effective date of January 16,
2009, is the revised definition of the
term ‘‘required use.’’ The revision of
that definition became the subject of
litigation, following issuance of the final
rule. (National Association of Home
Builders, et al. v. Steve Preston, et al.,
Civ. Action No. 08–CV–1324, United
States District Court for the Eastern
District of Virginia, Alexandria
Division.)
For reasons related to the proper
litigation of this case, HUD issued a
final rule on January 15, 2009 (74 FR
2369) that deferred the effective date of
the revised definition of ‘‘required use’’
for an additional 90 days until April 16,
2009. The litigation continues and HUD
finds again that for reasons including
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Fmt 4700
Sfmt 4700
10173
the pending litigation, the applicability
date of the definition of ‘‘required use’’
should be further delayed until July 16,
2009. The effective and implementation
dates of the remaining provisions of the
November 17, 2008, final rule are not
affected by the action taken in this rule.
The further delay is consistent with
the direction to federal agencies,
provided in a January 21, 2009,
memorandum from the Director of the
Office of Management and Budget to
consider extending the effective date for
rules published under the prior
Administration, which have not yet
taken effect. Additionally, the
memorandum notes that the
Administrative Procedure Act provides
for agencies to postpone the effective
date of an agency action pending
judicial review (see 5 U.S.C. 705).
Accordingly, this further extension is
consistent with law and the new
Administration’s procedural directions.
With the further delay of the effective
date, HUD seeks to use this time to
solicit public comment on withdrawing
the ‘‘required use’’ definition, as
promulgated in the November 17, 2008,
final rule and commencing new
rulemaking on this definition, which
would similarly strive to ensure
consumers are protected from certain
practices conducted by affiliated
business arrangements. Since issuance
of the final rule, HUD has determined to
reevaluate the scope and operation of
the required use provision. This issue is
one of importance in the RESPA
context, and HUD, regulated industries,
consumers and the public generally
would be better served by new
rulemaking. New rulemaking would
offer HUD with the opportunity to
present a new proposal based upon
HUD’s reevaluation of the required use
provision. New rulemaking would
provide consumers, industry, and other
interested members of the public with
the opportunity to comment on a
definition of ‘‘required use,’’ developed
as part of HUD’s evaluation process, and
for HUD to make informed decisions
based on this new commentary. HUD
therefore specifically seeks public
comment on withdrawing the required
use provision from the November 17,
2008, final rule and commencing new
rulemaking on this subject.
In general, HUD publishes a rule for
public comment before issuing a rule for
effect, in accordance with its own
regulations on rulemaking at 24 CFR
part 10. Part 10, however, does provide
in § 10.1 for exceptions from that
general rule where HUD finds good
cause to omit advance notice and public
participation. The Department finds that
good cause exists to publish this final
E:\FR\FM\10MRR1.SGM
10MRR1
10174
Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Rules and Regulations
rule for effect without first soliciting
public comment as requiring public
comment before extending the effective
date would be contrary to the interest of
justice and the public interest.
List of Subjects in 24 CFR Part 3500
Consumer protection, Condominiums,
Housing, Mortgagees, Mortgage
servicing, Reporting and recordkeeping
requirements.
Accordingly, 24 CFR part 3500 is
corrected by making the following
amendments:
■
PART 3500—REAL ESTATE
SETTLEMENT PROCEDURES ACT
1. The authority citation for part 3500
continues to read as follows:
■
Authority: 12 U.S.C. 2601 et seq: 42 U.S.C.
3535(d).
2. Section 3500.1(b)(1) is revised to
read as follows:
■
§ 3500.1
Designation and applicability.
*
*
*
*
*
(b) * * *
(1) The definition of Required use in
§ 3500.2 is applicable commencing on
July 16, 2009; §§ 3500.8(b), 3500.17,
3500.21, 3500.22 and 3500.23, and
Appendices E and MS–1 are applicable
commencing January 16, 2009.
*
*
*
*
*
Dated: March 6, 2009.
Brian D. Montgomery,
Assistant Secretary for Housing—Federal
Housing Commissioner.
[FR Doc. E9–5221 Filed 3–9–09; 8:45 am]
Wednesday, February 11, 2009, under
sections 367(a), 367(b) and 1248(a) of
the Internal Revenue Code. The final
regulations under section 367 revise
existing final regulations and add crossreferences. The final regulations under
section 1248 update an effective/
applicability date. The temporary
regulations under section 367(a) and (b)
revise existing final regulations
concerning transfers of stock to a foreign
corporation that are described in section
351 by reason of section 304(a)(1). The
temporary regulations under section
1248(a) provide that, for purposes of
section 1248(a), gain recognized by a
shareholder under section 301(c)(3) in
connection with the receipt of a
distribution of property from a foreign
corporation with respect to its stock
shall be treated as gain from the sale or
exchange of the stock of such foreign
corporation. The temporary regulations
affect certain persons that transfer stock
to a foreign corporation in a transaction
described in section 304(a)(1), or certain
persons that recognize gain under
section 301(c)(3) in connection with the
receipt of a distribution of property from
a foreign corporation with respect to its
stock.
DATES: This correction is effective
March 10, 2009, and is applicable on
February 11, 2009.
FOR FURTHER INFORMATION CONTACT:
Sean W. Mullaney, (202) 622–3860 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
BILLING CODE 4210–67–P
DEPARTMENT OF THE TREASURY
The final and temporary regulations
that are the subject of this document are
under sections 367 and 1248 of the
Internal Revenue Code.
Internal Revenue Service
Need for Correction
26 CFR Part 1
As published Wednesday, February
11, 2009 (74 FR 6824), final and
temporary regulations (TD 9444)
contains an error that may prove to be
misleading and is in need of
clarification.
[TD 9444]
RIN 1545–BI42
Application of Section 367 to a Section
351 Exchange Resulting From a
Transaction Described in Section
304(a)(1); Treatment of Gain
Recognized Under Section 301(c)(3) for
Purposes of Section 1248; Correction
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to final and
temporary regulations.
SUMMARY: This document contains a
correction to final and temporary
regulations (TD 9444) that were
published in the Federal Register on
VerDate Nov<24>2008
14:58 Mar 09, 2009
Jkt 217001
Correction of Publication
Accordingly, the publication of the
final and temporary regulations (TD
9444), which was the subject of FR Doc.
E9–2835, is corrected as follows:
On page 6825, column 2, in the
preamble, under the paragraph heading
‘‘A. Modified Application of Section
367(a) to Deemed Section 351
Exchanges’’, first paragraph of the
column, fourth line from the bottom of
the paragraph, the language ‘‘recognized
$100x gain under section’’ is corrected
PO 00000
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Fmt 4700
Sfmt 4700
to read ‘‘recognize $100x gain under
section’’.
Guy Traynor,
Acting Chief, Publications and Regulations
Branch, Legal Processing Division, Associate
Chief Counsel, (Procedure and
Administration).
[FR Doc. E9–4997 Filed 3–9–09; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9444]
RIN 1545–BI42
Application of Section 367 to a Section
351 Exchange Resulting From a
Transaction Described in Section
304(a)(1); Treatment of Gain
Recognized Under Section 301(c)(3) for
Purposes of Section 1248; Correction
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
SUMMARY: This document contains a
correction to final and temporary
regulations (TD 9444) that were
published in the Federal Register on
Wednesday, February 11, 2009, under
sections 367(a), 367(b) and 1248(a) of
the Internal Revenue Code. The final
regulations under section 367 revise
existing final regulations and add crossreferences.
The final regulations under section
1248 update an effective/applicability
date. The temporary regulations under
section 367(a) and (b) revise existing
final regulations concerning transfers of
stock to a foreign corporation that are
described in section 351 by reason of
section 304(a)(1). The temporary
regulations under section 1248(a)
provide that, for purposes of section
1248(a), gain recognized by a
shareholder under section 301(c)(3) in
connection with the receipt of a
distribution of property from a foreign
corporation with respect to its stock
shall be treated as gain from the sale or
exchange of the stock of such foreign
corporation. The temporary regulations
affect certain persons that transfer stock
to a foreign corporation in a transaction
described in section 304(a)(1), or certain
persons that recognize gain under
section 301(c)(3) in connection with the
receipt of a distribution of property from
a foreign corporation with respect to its
stock.
E:\FR\FM\10MRR1.SGM
10MRR1
]]>Agencies
[Federal Register Volume 74, Number 45 (Tuesday, March 10, 2009)]
[Rules and Regulations]
[Pages 10172-10174]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5221]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 3500
[Docket No. FR-5180-F-05]
RIN 2502-AI61
Real Estate Settlement Procedures Act (RESPA): Rule To Simplify
and Improve the Process of Obtaining Mortgages and Reduce Consumer
Settlement Costs; Further Deferred Applicability Date for the Revised
Definition of ``Required Use'' and Solicitation of Public Comment on
Withdrawal of Required Use Provision
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: This final rule delays the effective date of the definition of
``required use'' as revised by HUD's November 17, 2008, final rule
amending its RESPA regulations, until July 16, 2009. The November 17,
2008, final rule revised HUD's RESPA regulations to further the
purposes of RESPA by requiring more timely and effective disclosures
related to mortgage settlement costs for federally related mortgage
loans to consumers. The final rule revised the existing definition of
``required use,'' which revision was directed to enhancing protections
for consumers from certain practices conducted by affiliated business
arrangements. The revised definition of ``required use'' would have
become effective on January 16, 2009. However, on January 15, 2009, HUD
published a final rule that delayed the effective date of the
definition of ``required use'' from January 16, 2009, to April 16,
2009, due to litigation by the National Association of Home Builders,
et al., around the time of issuance of the final rule. For this same
reason, HUD is further delaying the effective date of required use
until July 16, 2009.
In this rule, HUD also solicits comment on withdrawing the revised
definition of ``required use'' from the November 17, 2008, final rule.
HUD will consider these comments before pursuing new rulemaking process
on this definition. Since promulgating the rule on November 17, 2008,
HUD has determined to reevaluate the scope and operation of the
required use provision. New rulemaking would give HUD the opportunity
to present for public consideration a new proposal based upon HUD's
reevaluation of the required use provision to help ensure better
consumer protections.
[[Page 10173]]
DATES: The amendment to Sec. 3500.1 is effective March 10, 2009. The
effective date of the definition of ``required use'' in Sec. 3500.2,
as revised by HUD's final rule published on November 17, 2008, at 73 FR
68204, and further delayed by final rule published on January 15, 2009,
at 74 FR 2369, is further delayed to July 16, 2009.
Comment Due Date: April 9, 2009.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule to the Regulations Division, Office of General Counsel, 451
7th Street, SW., Room 10276, Department of Housing and Urban
Development, Washington, DC 20410-0500. Communications must refer to
the above docket number and title. There are two methods for submitting
public comments. All submissions must refer to the above docket number
and title.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street, SW., Room 10276,
Washington, DC 20410-0500.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make them immediately available to
the public. Comments submitted electronically through the https://
www.regulations.gov Web site can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments must
be submitted through one of the two methods specified above. Again,
all submissions must refer to the docket number and title of the
rule.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the
above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments must be
scheduled by calling the Regulations Division at 202-708-3055 (this is
not a toll-free number). Individuals with speech or hearing impairments
may access this number through TTY by calling the Federal Information
Relay Service at 800-877-8339. Copies of all comments submitted are
available for inspection and downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Ivy Jackson, Director, or Barton
Shapiro, Deputy Director, Office of RESPA and Interstate Land Sales,
Office of Housing, Department of Housing and Urban Development, 451 7th
Street, SW., Room 9158, Washington, DC 20410-8000; telephone 202-708-
0502 (this is not a toll-free telephone number). Persons with hearing
or speech impairments may access this number through TTY by calling the
toll-free Federal Information Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION: On November 17, 2008 (73 FR 68204), HUD
published a final rule amending its regulations to further the purposes
of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601-
2617) by requiring more timely and effective disclosures related to
mortgage settlement costs for federally related mortgage loans to
consumers. The final rule followed publication of a March 14, 2008,
proposed rule (73 FR 14030) and made changes in response to public
comment and in further consideration of certain issues by HUD.
Additional information regarding the regulatory amendments, and the
changes made by HUD at the final rule stage, is provided in the
preamble to the November 17, 2008, final rule.
The November 17, 2008, final rule became effective on January 16,
2009, but provided a longer transition period for the majority of the
new requirements. Other provisions, however, were scheduled to take
effect on January 16, 2009. Among regulatory changes identified as
being applicable upon the effective date of January 16, 2009, is the
revised definition of the term ``required use.'' The revision of that
definition became the subject of litigation, following issuance of the
final rule. (National Association of Home Builders, et al. v. Steve
Preston, et al., Civ. Action No. 08-CV-1324, United States District
Court for the Eastern District of Virginia, Alexandria Division.)
For reasons related to the proper litigation of this case, HUD
issued a final rule on January 15, 2009 (74 FR 2369) that deferred the
effective date of the revised definition of ``required use'' for an
additional 90 days until April 16, 2009. The litigation continues and
HUD finds again that for reasons including the pending litigation, the
applicability date of the definition of ``required use'' should be
further delayed until July 16, 2009. The effective and implementation
dates of the remaining provisions of the November 17, 2008, final rule
are not affected by the action taken in this rule.
The further delay is consistent with the direction to federal
agencies, provided in a January 21, 2009, memorandum from the Director
of the Office of Management and Budget to consider extending the
effective date for rules published under the prior Administration,
which have not yet taken effect. Additionally, the memorandum notes
that the Administrative Procedure Act provides for agencies to postpone
the effective date of an agency action pending judicial review (see 5
U.S.C. 705). Accordingly, this further extension is consistent with law
and the new Administration's procedural directions.
With the further delay of the effective date, HUD seeks to use this
time to solicit public comment on withdrawing the ``required use''
definition, as promulgated in the November 17, 2008, final rule and
commencing new rulemaking on this definition, which would similarly
strive to ensure consumers are protected from certain practices
conducted by affiliated business arrangements. Since issuance of the
final rule, HUD has determined to reevaluate the scope and operation of
the required use provision. This issue is one of importance in the
RESPA context, and HUD, regulated industries, consumers and the public
generally would be better served by new rulemaking. New rulemaking
would offer HUD with the opportunity to present a new proposal based
upon HUD's reevaluation of the required use provision. New rulemaking
would provide consumers, industry, and other interested members of the
public with the opportunity to comment on a definition of ``required
use,'' developed as part of HUD's evaluation process, and for HUD to
make informed decisions based on this new commentary. HUD therefore
specifically seeks public comment on withdrawing the required use
provision from the November 17, 2008, final rule and commencing new
rulemaking on this subject.
In general, HUD publishes a rule for public comment before issuing
a rule for effect, in accordance with its own regulations on rulemaking
at 24 CFR part 10. Part 10, however, does provide in Sec. 10.1 for
exceptions from that general rule where HUD finds good cause to omit
advance notice and public participation. The Department finds that good
cause exists to publish this final
[[Page 10174]]
rule for effect without first soliciting public comment as requiring
public comment before extending the effective date would be contrary to
the interest of justice and the public interest.
List of Subjects in 24 CFR Part 3500
Consumer protection, Condominiums, Housing, Mortgagees, Mortgage
servicing, Reporting and recordkeeping requirements.
0
Accordingly, 24 CFR part 3500 is corrected by making the following
amendments:
PART 3500--REAL ESTATE SETTLEMENT PROCEDURES ACT
0
1. The authority citation for part 3500 continues to read as follows:
Authority: 12 U.S.C. 2601 et seq: 42 U.S.C. 3535(d).
0
2. Section 3500.1(b)(1) is revised to read as follows:
Sec. 3500.1 Designation and applicability.
* * * * *
(b) * * *
(1) The definition of Required use in Sec. 3500.2 is applicable
commencing on July 16, 2009; Sec. Sec. 3500.8(b), 3500.17, 3500.21,
3500.22 and 3500.23, and Appendices E and MS-1 are applicable
commencing January 16, 2009.
* * * * *
Dated: March 6, 2009.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E9-5221 Filed 3-9-09; 8:45 am]
BILLING CODE 4210-67-P
