Proposed Collection; Comment Request, 95596-95612 [2016-31386]

Download as PDF 95596 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices II. Introduction I. Comments sradovich on DSK3GMQ082PROD with NOTICES General Counsel, Attention: Comments/ 2016–N–13, Federal Housing Finance Agency, 400 Seventh Street SW., Eighth Floor, Washington, DC 20219. To ensure timely receipt of hand delivered package, please ensure that the package is delivered to the Seventh Street entrance Guard Desk, First Floor, on business days between 9 a.m. to 5 p.m. • U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/2016–N–13, Federal Housing Finance Agency, 400 Seventh Street SW., Eighth Floor, Washington, DC 20219. Please note that all mail sent to FHFA via the U.S. Postal Service is routed through a national irradiation facility, a process that may delay delivery by approximately two weeks. For any time-sensitive correspondence, please plan accordingly. See SUPPLEMENTARY INFORMATION for additional information on submission and posting of comments. FOR FURTHER INFORMATION CONTACT: Forrest Pafenberg, Program Manager, National Mortgage Database Project, Forrest.Pafenberg@fhfa.gov or (202) 649–3129; Stacy Easter, Privacy Act Officer, privacy@fhfa.gov or (202) 649– 3803; or David A. Lee, Senior Agency Official for Privacy, privacy@fhfa.gov or (202) 649–3803 (not toll-free numbers), Federal Housing Finance Agency, 400 Seventh Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Deaf is 800–877–8339. SUPPLEMENTARY INFORMATION: III. Revised System of Records FHFA seeks public comments on the revision to the system of records and will take all comments into consideration. See 5 U.S.C. 552a(e)(4) and (11). In addition to referencing ‘‘Comments/2016–N–13,’’ please reference the ‘‘National Mortgage Database Project’’ (FHFA–21). All comments received will be posted without change on the FHFA Web site at http://www.fhfa.gov, and will include any personal information provided, such as name, address (mailing and email), and telephone numbers. In addition, copies of all comments received will be available without change for public inspection on business days between the hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, 400 Seventh Street SW., Washington, DC 20219. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649–3804. The ‘‘National Mortgage Database Project’’ (FHFA–21) system of records is being revised to add data fields related to language, specifically information related to Limited English Proficiency or a Preferred Language. The information is being collected to identify obstacles for borrowers with Limited English Proficiency (LEP) or a Preferred Language (PL) in accessing mortgage credit, analyze potential solutions, and develop measures to improve access to credit. This information will assist FHFA in ensuring that its regulated entities appropriately support meaningful access to the mortgage market for mortgage ready LEP/PL borrowers, as well as support the overall goal of assuring that borrowers are able to understand and participate fully in the mortgage life cycle, including origination, servicing, and loss mitigation, regardless of the language spoken. VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 This notice satisfies the Privacy Act requirement that an agency publish a system of records notice in the Federal Register when there is an addition or change to an agency’s system of records. Congress has recognized that application of all requirements of the Privacy Act to certain categories of records may have an undesirable and often unacceptable effect upon agencies in the conduct of necessary public business. Consequently, Congress established general exemptions and specific exemptions that could be used to exempt records from provisions of the Privacy Act. Congress also required that exempting records from provisions of the Privacy Act would require the head of an agency to publish a determination to exempt a record from the Privacy Act as a rule in accordance with the Administrative Procedure Act. The Director of FHFA has determined that records and information in this system of records are not exempt from the requirements of the Privacy Act. As required by the Privacy Act, 5 U.S.C. 552a(r), and pursuant to paragraph 4c of Appendix I to OMB Circular No. A–130, ‘‘Federal Agency Responsibilities for Maintaining Records About Individuals,’’ dated November 28, 2000, FHFA has submitted a report describing the system of records covered by this notice to the Committee on Oversight and Government Reform of the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Office of Management and Budget. PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 Information about LEP or PL will be collected as part of the National Survey of Mortgage Originations and the American Survey of Mortgage Borrowers. Responses to the survey will be maintained in anonymized form as part of the National Mortgage Database Project. A separate opt-out list from the Surveys will be maintained which will contain name, address, and Zip Code of those individuals who have opted out of receiving communications about the Surveys. FHFA employees will not have access to this list. This list is maintained in order to ensure that these individuals do not receive any future communications about the Surveys after opting out. The revision to the system of records notice is described in detail below. All other aspects of the system of records notice, other than the changes described below, remain unchanged. FHFA–21 SYSTEM NAME: National Mortgage Database Project. CATEGORIES OF RECORDS IN THE SYSTEM: Records include information related to an individual’s language preference, including, but not limited to, information about the borrower’s or coborrower’s Limited English Proficiency and/or Preferred Language. Dated: December 21, 2016. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2016–31381 Filed 12–27–16; 8:45 am] BILLING CODE 8070–01–P FEDERAL HOUSING FINANCE AGENCY [No. 2016–N–16] Proposed Collection; Comment Request Federal Housing Finance Agency. ACTION: 30-Day Notice of submission of information collection for approval from Office of Management and Budget. AGENCY: In accordance with the requirements of the Paperwork Reduction Act of 1995, the Federal Housing Finance Agency (FHFA or the Agency) is seeking public comments concerning the information collection known as the ‘‘National Survey of Mortgage Originations’’ (NSMO), which has been assigned control number 2590– 0012 by the Office of Management and Budget (OMB) (the collection was previously known as the ‘‘National Survey of Mortgage Borrowers’’). FHFA SUMMARY: E:\FR\FM\28DEN1.SGM 28DEN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices intends to submit the information collection to OMB for review and approval of a three-year extension of the control number, which is due to expire on December 31, 2016. DATES: Interested persons may submit comments on or before January 27, 2017. ADDRESSES: Submit comments to the Office of Information and Regulatory Affairs of the Office of Management and Budget, Attention: Desk Officer for the Federal Housing Finance Agency, Washington, DC 20503, Fax: (202) 395– 3047, Email: OIRA_submission@ omb.eop.gov. Please also submit comments to FHFA, identified by ‘‘Proposed Collection; Comment Request: ‘National Survey of Mortgage Originations, (No. 2016–N–16)’ ’’ by any of the following methods: • Agency Web site: www.fhfa.gov/ open-for-comment-or-input. • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. If you submit your comment to the Federal eRulemaking Portal, please also send it by email to FHFA at RegComments@fhfa.gov to ensure timely receipt by the agency. • Mail/Hand Delivery: Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20219, ATTENTION: Proposed Collection; Comment Request: ‘‘National Survey of Mortgage Originations, (No. 2016–N–16).’’ • U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/2016–N–16, Federal Housing Finance Agency, 400 Seventh Street SW., Eighth Floor, Washington, DC 20219. We will post all public comments we receive without change, including any personal information you provide, such as your name and address, email address, and telephone number, on the FHFA Web site at http://www.fhfa.gov. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649–3804. FOR FURTHER INFORMATION CONTACT: Forrest Pafenberg, Supervisory Economist, Office of the Chief Operating Officer, by email at Forrest.Pafenberg@ fhfa.gov or by telephone at (202) 649– 3129; or Eric Raudenbush, Associate VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 General Counsel, by email at Eric.Raudenbush@fhfa.gov or by telephone at (202) 649–3084, (these are not toll-free numbers), Federal Housing Finance Agency, 400 Seventh Street SW., Washington, DC 20219. The Telecommunications Device for the Hearing Impaired is (800) 877–8339. SUPPLEMENTARY INFORMATION: A. Background The NSMO is a recurring quarterly survey of individuals who have recently obtained a loan secured by a first mortgage on single-family residential property. The survey questionnaire is sent to a representative sample of approximately 6,000 recent mortgage borrowers each calendar quarter and typically consists of between 90 and 95 multiple choice and short answer questions designed to obtain information about borrowers’ experiences in choosing and in taking out a mortgage.1 The questionnaire may be completed either on paper or electronically online, and is available in both English and Spanish. The NSMO is sponsored by FHFA and is one component of the National Mortgage Database Project, an ongoing joint effort of FHFA and the Consumer Financial Protection Bureau (CFPB). Section 1324 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act) requires that FHFA prepare annually a detailed report on the residential mortgage market activities of two of its regulated entities—the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, ‘‘the Enterprises’’)—and to submit that annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.2 At a minimum, the report must: (1) Address the extent to which the Enterprises are fulfilling their statutory duties with respect to the residential mortgage markets, including their duty to serve underserved markets; (2) aggregate and analyze relevant data on income to assess the compliance of each Enterprise with statutory housing goals established under section 1331 of 1 A copy of the most recent NSMO questionnaire appears at the end of this document. In addition, copies of the questionnaire in both English and Spanish can be accessed online at: http:// www.fhfa.gov/Homeownersbuyer/Pages/NationalSurvey-of-Mortgage-Originations.aspx. 2 See 12 U.S.C. 4544(a). Congress added the requirements of section 1324 to the Safety and Soundness Act in 2008. See Housing and Economic Recovery Act of 2008, Public Law 110–289, sec. 1125, 122 Stat. 2654, 2693–95 (2008). PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 95597 the Safety and Soundness Act; 3 (3) aggregate and analyze data on income, race, and gender by census tract and other relevant classifications, and compare such data with larger demographic, housing, and economic trends; (4) identify the extent to which each Enterprise is involved in mortgage purchases and secondary market activities involving subprime and nontraditional loans; (5) compare the characteristics of subprime and nontraditional loans purchased and securitized by each Enterprise to other loans purchased and securitized by each Enterprise; and (6) compare the characteristics of high-cost loans purchased and securitized, but not held in portfolio, by each Enterprise to such securitized loans that are retained in portfolio or repurchased by the Enterprise, including such characteristics as the purchase price of the property securing the mortgage, the loan-to-value ratio of the mortgage, the terms of the mortgage, the creditworthiness of the borrower, and any other relevant data, as determined by the Director of FHFA.4 Section 1324 further requires that FHFA conduct a monthly survey to collect data needed to adequately analyze the matters that must be addressed in the annual report.5 In particular, the survey must collect information on the characteristics of individual prime and subprime mortgages and the creditworthiness and other characteristics of the borrowers on those mortgages.6 It may also address such other matters as the Director of FHFA deems to be appropriate.7 The statute requires that FHFA compile a database of timely and otherwise unavailable residential mortgage market information obtained from the monthly survey and to make that information available to the public.8 As a means of fulfilling these and other statutory requirements, as well as to support policymaking and research regarding the residential mortgage markets, FHFA and CFPB jointly established the National Mortgage Database Project in 2012. The project is designed to provide comprehensive information about the U.S. mortgage market based on a five percent sample of residential mortgages. The project has three primary components: (1) The National Mortgage Database; (2) the quarterly NSMO; and (3) the annual 3 12 U.S.C. 4561. 12 U.S.C. 4544(b). 5 See 12 U.S.C. 4544(c)(1). 6 See 12 U.S.C. 4544(c)(2)(A), (B). 7 See 12 U.S.C. 4544(c)(2)(C). 8 See 12 U.S.C. 4544(c)(3). 4 See E:\FR\FM\28DEN1.SGM 28DEN1 sradovich on DSK3GMQ082PROD with NOTICES 95598 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices American Survey of Mortgage Borrowers (ASMB).9 When fully complete, the National Mortgage Database will be a de-identified loan-level database of closed-end first-lien residential mortgage loans that is representative of the market as a whole, contains detailed loan-level information on the terms and performance of the mortgages and the characteristics of the associated borrowers and properties, is continually updated, has an historical component dating back to 1998, and provides a sampling frame for surveys to collect additional information. The core data in the National Mortgage Database are drawn from a random 1-in-20 sample of all closed-end first-lien mortgage loans outstanding at any time between January 1998 and the present from the files of Experian, one of the three nationwide credit reporting agencies. The National Mortgage Database currently contains data on approximately 11.6 million mortgage loans. Between 80,000 and 100,000 mortgages, drawn from a random 1-in20 sample of loans newly reported to Experian, are added each quarter. Additional information on the mortgages in the datasets is drawn from other existing sources, including, but not limited to the Home Mortgage Disclosure Act (HMDA) data released by the Federal Financial Institutions Examination Council (FFIEC), property valuation models, transactional data maintained by local governments, and administrative data files maintained by the Enterprises and by federal agencies. Mortgages are followed in the National Mortgage Database until they terminate through prepayment (including refinancing), foreclosure, or maturity. The NSMO was developed to complement the National Mortgage Database by providing critical and timely information—not available from existing sources—on the range of nontraditional and subprime mortgage products being offered, the methods by which these mortgages are being marketed, and the characteristics of borrowers for these types of loans. In particular, the survey questionnaire is designed to elicit directly from mortgage borrowers information on the characteristics of borrowers and on their experiences in finding and obtaining a mortgage loan, including: Their mortgage shopping behavior; their mortgage closing experiences; their 9 While the NSMO solicits information about the experiences of borrowers who have recently obtained a mortgage, the ASMB solicits information on borrowers’ experience with maintaining their existing mortgages. OMB has cleared the ASMB under the PRA and assigned it control no. 2590– 0015, which expires on July 31, 2019. VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 expectations regarding house price appreciation; and critical financial and other life events effecting their households, such as unemployment, large medical expenses, or divorce. The survey questions do not focus on the terms of the borrowers’ mortgage loans because these fields are available in the Experian data. However, the NSMO collects a limited amount of information on each respondent’s mortgage to verify that the Experian records and survey responses pertain to the same mortgage. Each wave of the NSMO is sent to the primary borrowers on about 6,000 mortgage loans, which are drawn from a simple random sample of the 80,000 to 100,000 newly originated mortgage loans that are added to the National Mortgage Database from the Experian files each quarter (at present, this represents an approximately 1-in-15 sample of loans added to the National Mortgage Database and an approximately 1-in-300 sample of all mortgage loan originations). By contract with FHFA, the conduct of the NSMO is administered through Experian, which has subcontracted the survey administration through a competitive process to Westat, a nationallyrecognized survey vendor.10 Westat also carries out the pre-testing of the survey materials. Wave 1 of the NSMO was mailed out in April 2014, and a new wave of the survey has been conducted each quarter since. To date, eleven quarterly waves of the survey have been completed. B. Need For and Use of the Information Collection FHFA views the National Mortgage Database Project as a whole, including the NSMO, as the monthly ‘‘survey’’ that is required by section 1324 of the Safety and Soundness Act. Core inputs to the National Mortgage Database, such as a regular refresh of the Experian data, occur monthly, though NSMO itself does not. In combination with the other information in the National Mortgage Database, the information obtained through the NSMO is used to prepare the report to Congress on the mortgage market activities of Fannie Mae and Freddie Mac that FHFA is required to submit under section 1324, as well as for research and analysis by FHFA and CFPB in support of their regulatory and supervisory responsibilities related to the residential mortgage markets. The NSMO is especially critical in ensuring 10 The Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., requires that the survey process, because it utilizes borrower names and addresses drawn from credit reporting agency records, must be administered through Experian in order to maintain consumer privacy. PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 that the National Mortgage Database contains uniquely comprehensive information on the range of nontraditional and subprime mortgage products being offered, the methods by which these mortgages are being marketed and the characteristics—and particularly the creditworthiness—of borrowers for these types of loans. In the future, the information may be used to provide a resource for research and analysis by other federal agencies and by academics and other interested parties outside of the government. FHFA is also seeking OMB approval to conduct cognitive pre-testing of the survey materials. The Agency will use information collected through that process to assist in drafting and modifying the survey questions and instructions, as well as the related communications, to read in the way that will be most readily understood by the survey respondents and that will be most likely to elicit usable responses. Such information will also be used help the Agency decide on how best to organize and format the survey questionnaires. The OMB control number for this information collection is 2590–0012. The current clearance for the information collection expires on December 31, 2016. C. Burden Estimate FHFA has analyzed the hour burden on members of the public associated with conducting the survey (12,000 hours) and with pre-testing the survey materials (30 hours) and estimates the total annual hour burden imposed on the public by this information collection to be 12,030 hours. The estimate for each phase of the collection was calculated as follows: I. Conducting the Survey FHFA estimates that the NSMO questionnaire will be sent to 24,000 recipients annually (6,000 recipients per quarterly survey × 4 calendar quarters). Although, based on historical experience, the Agency expects that only 30 to 35 percent of those surveys will be returned, it has assumed that all of the surveys will be returned for purposes of this burden calculation. Based on the reported experience of respondents to prior NSMO questionnaires, FHFA estimates that it will take each respondent 30 minutes (0.5 hours) to complete the survey, including the gathering of necessary materials to respond to the questions. This results in a total annual burden estimate of 12,000 hours for the survey phase of this collection (24,000 E:\FR\FM\28DEN1.SGM 28DEN1 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices respondents × 0.5 hours per respondent = 12,000 hours annually). sradovich on DSK3GMQ082PROD with NOTICES II. Pre-Testing the Materials FHFA estimates that it will pre-test the survey materials with 30 cognitive testing participants annually. The estimated participation time for each participant is one hour, resulting in a total annual burden estimate of 30 hours for the pre-testing phase of the collection (30 participants × 1 hour per participant = 30 hours annually). D. Comments Received in Response to Initial Notice In accordance with the requirements of 5 CFR 1320.8(d), FHFA published an initial notice requesting comments regarding this information collection in the Federal Register on September 13, 2016.11 The 60 day comment period closed on November 14, 2016. FHFA received two comment letters, one of which recommended revisions to the content of the survey questionnaire and the other of which recommended measures to increase survey response rates. FHFA has carefully considered each of the suggested revisions, but, as explained below, has decided not to implement any of those suggestions at this time. The first comment letter was from an individual who has served in various capacities with a community association trade group and who is the president of a company that provides online technology in support of the sale, resale, finance, and refinance of homes in community associations.12 The letter asserts that certain questions in the NSMO questionnaire ‘‘fail to adequately and effectively recognize’’ the role of community associations in U.S. home ownership and that, as a result, data from the NSMO regarding community associations ‘‘has nominal heuristic and statistical value at best.’’ It suggests adding several questions to the NSMO questionnaire, and revising several existing questions, to elicit more information relevant to community associations. Specifically, the letter first suggests revising Question 60 to elicit more specific information on the type of property that is associated with the respondent’s mortgage and adding two questions as to whether the respondent’s property is in a community association and, if so, the specific type of community association. 11 See 81 FR 62889 (Sept. 13, 2016). letter explains that community associations are ‘‘housing management organizations that are an out-growth of traditional subdivision and zoning controls’’ and include 12 The VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 FHFA believes that, while such questions could be suitable for a survey that focuses on housing structure, they would not be appropriate for the NSMO, which focuses on consumers’ experience in seeking and obtaining a residential mortgage loan.13 The commenter also suggests adding a question to elicit information on the respondent’s level of familiarity with various types of community association fees. Again, such a question would be beyond the scope of the NSMO, which does not attempt to capture information on the cost of a mortgage or on fees paid at origination or over the life of the mortgage. Finally the letter suggests revising the answer choices for Questions 7, 39, and 50 to allow respondents to indicate, respectively: Whether they used any of the proceeds from a refinance to pay community association fees; whether and to what extent community association documents or officials may have provided them with information about mortgages or mortgage lenders; and whether and to what extent they sought input about their mortgage loan closing documents from officials of a community association. FHFA notes that each of those questions permits a respondent to choose ‘‘other’’ and to write in a specific answer if none of the other answer choices are applicable. To date, none of the questions have elicited an ‘‘other’’ response in the vein of any of the answer choices that the commenter suggests adding. Accordingly, FHFA does not see a need to revise any of the questions in the manner suggested. The second comment letter, from a law school professor, states that the NSMO is very important to understanding the health of the mortgage market and agrees that the collection is necessary for the proper performance of FHFA functions. However, it also expresses a concern that, given the length of the survey questionnaire, those recipients who ultimately decide to respond will not be representative of the typical borrower. It suggests two ways of encouraging a response from recipients who might otherwise be reluctant to take the time to complete the survey: (1) Providing a greater incentive; and (2) allowing recipients the option of completing a shorter version of the questionnaire. FHFA agrees that non-response bias (the bias that results when respondents condominiums, cooperatives, and planned communities. 13 Both the American Housing Survey (sponsored jointly by the Department of Housing and Urban Development and the Census Bureau) and the PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 95599 differ systematically from nonrespondents) is an important concern and the Agency has spent, and continues to spend, significant time considering ways to increase response rates and to mitigate the effects of nonresponse bias. In developing the NSMO, the Agency consulted with top experts on conducting consumer surveys, who recommended an up-front payment of five dollars as the most effective way of incentivizing survey recipients to respond. FHFA adopted this recommendation. In addition, based on the results of the first seven waves of the NSMO, these experts also evaluated the expected effect on the response rate of increasing or decreasing the number of questions and the length of the questionnaire. Both experts opined that shortening the questionnaire would not significantly increase the response rate. With respect to the mitigation of nonresponse bias when analyzing survey responses, FHFA has followed best practices of survey sampling analysis. The availability in the National Mortgage Database of extensive credit and administrative data on both responding and non-responding borrowers gives FHFA the ability to construct non-response weights with more accuracy than is possible for most surveys. E. Comment Request In accordance with the requirements of 5 CFR 1320.10(a), FHFA is publishing this second notice to request comments regarding the following: (1) Whether the collection of information is necessary for the proper performance of FHFA functions, including whether the information has practical utility; (2) the accuracy of FHFA’s estimates of the burdens of the collection of information; (3) ways to enhance the quality, utility and clarity of the information collected; and (4) ways to minimize the burden of the collection of information on members and project sponsors, including through the use of automated collection techniques or other forms of information technology. Comments should be submitted in writing to both OMB and FHFA as instructed above in the Comments section. Dated: December 22, 2016. Kevin Winkler, Chief Information Officer, Federal Housing Finance Agency. American Community Survey (sponsored by the Census Bureau) would be more appropriate vehicles for eliciting such information. E:\FR\FM\28DEN1.SGM 28DEN1 95600 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices t services. We want to make it as easy as survey in the enclosed business this survey. You can mail back the paper the survey online. The online version of the any IN to your survey # because it in the encuesta Thanks so much for your in home VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00046 national effort to Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.016</GPH> sradovich on DSK3GMQ082PROD with NOTICES encuesta Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95601 n Privacy Act Notice: In accordance with the Privacy Act, as amended (5 U.S.C. § 552a), the following notice is provided. The information requested on this Survey is collected pursuant to 12 U.S.C. 4544 for the purposes of gathering information for the National Mortgage Database. Routine uses which may be made of the collected information can be found in the Federal Housing Finance Agency's System of Records Notice (SORN) FHFA-21 National Mortgage Database. Providing the requested information is voluntary. Submission of the survey authorizes FHFA to collect the information provided and to disclose it as set forth in the referenced SORN. Paperwork Reduction Act Statement: Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act, unless that collection of information displays a currently valid OMB Control Number. VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00047 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.017</GPH> sradovich on DSK3GMQ082PROD with NOTICES OMB No. 2590-0012 Expires 12/31120 16 95602 • Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices Thankyouforhelping us to learn more . abouJ your experience in getting or rejmcmcJJtg a mortgage. 1. \Vitbin the past 18 months or so, did you take out or co-sign for a mortgage l()~tn including any refinance.of an .existing mortgage? 0 Yes .. 0 0 Somevvhat OVery ONotat.all 6. How firm an idea did. you (and any co"signers) ha:veabout the mortgage you wanted? 4lfy()u took out or co-sigved for more than one martgage durir;g this time, please refer to your ex:perien.ce with the most· N!e(!nt refina.nee or new mortgage. 0 Fitm idea No ~·Please return the blank questionnaire so We know the survey does not appzy to you. money enclosed is you1's to keep. 0Someidea 0 iittle idea 7. How mu~h did you useea~h ofthefollowing sources to. get information about mortgages or :iuo~-t~"-b'C:' l.Cnd<a.::.:.? 2. Did we mail this survey to .the address of tire house or property you financed with t(lis mortgage? 0 • 5. When you began the process Ql getting this mortgage, bow concerned were you about qualifying for a IJlurtgage'? A Lot Your lender or mortgage broker Other lenders or brokers Real estate agents or builders Material in the mail Websites that provide infonnation on getting a mortgage Newspaper/TV/Radio Friends/relatives(co-workers .Bankers or finam::ial plafln{lrs Housing cotmselors O.No 3; Including.you, who signed or co-signed for this mortgage? Mark all that applJt. 0 0 0 0 A Not Little At All 0 0 0 0 0 0 0 0 0 0 0 D 0 0 0 0 0 0 0 0 0 0 0 0 Oisigned 0 Spouse/part:t:ler including a former spouse/partner OParents 0Children 0 Other relatives 0 Other (e.g. friend, business partner) 0 d Qth.er (specifY) lf this loan was co-signed by others, take into acco~mt ali co~signers.as best you.can when answering the rest q[the surwy. Otherwise, itisyou.r own situation that ·H•e want.to know .about. 8. Wllich ofthe following best describes.your shopping process? .0 I picked rhe lqan type first, and Jhen I picked the lender/mortgage broker 0 I picked the lender1m ortgage broker tlrst, and then I picked the loari type 4. When you .began the process of getting this mortgage, howfamUiarwereyou (and a:ny co-signprs) with each oftltc following? Not Very Soluewbat At All The mortgage interest rates available at that time The different types.of mortgages available The mortgage process The down. payment needed to .qualifY for a.nmrtgage The income needed to qualify for a mortgage 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D .your .credit history or 0 Directly to a lender, such as a bank: or credit ~mion 0 Through a mortgage broker (,someone who works .with multiple lendersto get a loan) 0 Other (spe'YifY) _ _ _ _ _ _ _ _ _.,-- 10. .How many diffenmt lenders/mortgage brokers did you seriously consider before· cbQosing where to apply forthis mortgage'l 01 02 04. • VerDate Sep<11>2014 05:ormore 0 33029 ~18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00048 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.018</GPH> sradovich on DSK3GMQ082PROD with NOTICES credit score The money needed at dosing 9. How did yvu. apply for this mortgage'? }/{ark one. answer. 95603 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 11. How many different lenders/mortgage brokers did you end up applying to? 02 01 03 0.4 Not Important Important 05ormore '~--------~~~~--~~~J Lower interest rate Lower APR (Annual Percentage Rate) Lower closing fees Lower dovmpayrrterit Lower monthly payment An interest rate fixed for.the life of the loan A term of 30 years No mortgage inm1rance 12. Did you apply .to more than ~me lender/ mortgage broker for any ofthe following reaspns? Yes N() 0 0 0 0 0 0 Searching for better loan tenns Concern over qualitying for a loan Information learned from the "Loan Estimate" Turned down on earlier application 0 0 0 0 0 0 No 0 D 0 0 0 0 Check other sources to confirm that 'terms of tHis mortgage wen: reasonable No 0 0 0 D 0 0 0 0 0 0 0 0 O 0 0 0 20. Your lender may have given you a booklet "Your home loan toolki(: A step-by-step guide", do you remember receiving a (:'opy? 15. How open were you to suggestions from your lender/mortgage broker about mortgages,vith different features orterms? sradovich on DSK3GMQ082PROD with NOTICES 0 Yes real estate. agent or home builder;) VerDate Sep<11>2014 0 0 Have to add another co-signer to qualify Resolve credineport errors or proble111s Answer follow-up requests for more information about income or assets Have more than one appraisal Redo!refile paperwork due to processing delays j)elay or p0stponc closing date Have ymrr "Loan Estimate" revised to reflect changes in your loan terms 0 OI D Yes C onliime with 0No SkiptoQ22 0Don'tknow Skip to Q22 0Notatall • No 0 19. In the process of getting this mortgage from your lender/mortgage broker, did. you;., (or one ofmy;.:o-signers).did 0 The lender/mortgage broker did . 0 We were put in contact by a third party (such as a 0Somcwhat 0 Apply to a different lender/mortgage broker 14: Wlto initiated the first contact between you and the lender/mortgage broker you u.s.ed for the mortgage you took out? OVery D broker 0 Reputation of the lender/mortgage brokerO Spoke my primary lrmguage, which is not English 0 0 0 Seek a change in your loan or closing 0 Recommendation from a real estate agent/home builder 0 0 Yes 0 Recommendation from a friend/ relative/co-worker 0 Ask questions of your lender/mortgage 0 0 0 0 18. Did the "Loan Estimate'' lead you to ... 0 0 0 0 0 Yes N()t 0 0 0 0 0 Ilasy to understand Valuable infom1ation Important Important 0 0 0 17. Was the "Lo~~cn Estimate" you received frqm your lender/mortgage broker .... 13. :ftowimportantwereeacbo(the following in choosing the lender/mortgage broker you used for the mortgage you took out? Having an established banking relationship Having a local office or branch nearby Used previously to get a mortgage Lender/mortgage broker is a personal friend or relative Lender/mortgage broker operates online • 16. Ho.w important were each of the following in determining the mortgage you took out? 33029 ~- 2 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.019</GPH> • 95604 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices • 2L Did the "Your home loan toolkit" booklet lead Y()U to ask additional questions about your. mortgage terms'!: o ONo 22. During tlm 3 pplication process were. you told about mortgages with any oftl:te following? Yes An interest rate that is fixed for the life of the loan An interest rate that could change over the. life of the loan .. A tenn of less than 30 years A higher interest rate in return.for lower dosing costs A lower interest rate in return for paying higher closing costs (discount points) In.terest~only monthly payments An escrow account for taxes and/or homeowner insurance A prepayment penalty (fee if the morigage · ispaidojfearly) Reduced documentation or "easy" approval VA USDA orRuralHo\lS1ng loan No 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 D 28. Did you take a course about lt()me~buyingor talk to ahousing counselor? 0No-Skipto Q32 23. In selectingyour settlement/closing agent did OYesl you ... Yes Use an agent selected/recommended by the lender/mortgage broker 0 Use an agent you liad used prev:io~sly 0 Shop around 0 D. .29. How was the home~ buying course or·. counseling provided? No 0 0 0 Yes In person, in a group Over the phone Online Did not have a settlement/closing agent 0 Yes-Contin12e withQ25 0No - Skip to Q26 . 0 D01t't know- Skip to.Q26 OVery 0 Somewhat D:Notatall 33029 ~- 3 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.020</GPH> sradovich on DSK3GMQ082PROD with NOTICES VerDate Sep<11>2014 31. Overall, bow ~elpful was th!l hom(.l-buying course .or .counseling? Reissued previous title insiJrance Used title insurance rccommcnqcd by 1enJer/rttQ:rtgage broker orsettlemenl agent Shopped .around . • 0 D D 0 Less tlian3 hours. 03 -6hours 01 12hours 0 More than 12 hours .25. Which best. describes bow. you picked the title insurance? 0 D 30. How many hours was the home-buying course or counseling? 24. Do you have title insurance on this mortgage? 0 0 No. D 0 D D In person, one-on-one 95605 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices • 32; 'What was the primary purpose for lhismost · recen~ mortgage'! IJyou refinam;ed an existing mortgage for anyreason, please select .refinance below. lvfm:kQ!!J! answer: 0 d 0 0 0 36. How important were the following in your decision to retlmuwe, modify or obtain a new mortgage'? Not )inportant. hnportant Purchase of a property Coritin!{e withQ33 Change to a fixed-rate loan Get a lower interest rate Get a lower monthly payment Consolidat~ or pay downoth()r debt Repay the loan more quickly Take .out cash Penn anent financing on a construction Joan Refinance or modification of an existing mortgage New loan on amortgage-:free property Some other purpose (specify) · • 0 0 0 0 0 0 0 0 0 0 0 0 37. App}'oximately bow much was owed, in total, on the old mortgage(s)and loari(s)you refinanced'? 33.. Dip You clotho following. before or after you made an offer on this house or properly? Before .Offer After Offer 0 0 0 0 0 [j 0 0 0 0 0 0 0 0 $ ~--..,...---..,...------ .00 D. Zero (the property was mortgage-free) Did Not Do 0 Contacted a lender to explore mortgage options Got a pre-approval or prequalification from a lender Decided on the type of loan Made a decision on which lender to use Submitted an official loan apphcatlon 38. Howdoes the total amount of your new murtgage(s) compare to the total amount of the old mortgage(s) and loan(s) you paid.off (include any new Sec;ond liens; nome equity /oa/'lS, ora home equity line of credit (HELOG))? 0 0 0 0 34. What percenn:lown payment did you make on this.pFoperty? New amount is lower- Skip to Q40 New amount is about the sfune -Skip ro Q40 "'h.-, New amount is higher Prorerty was mortgage-freeJ •. ! 39. Did you usethe money you got from this new mort gage for any oft he folio wing? [jo% 0 0 0 Less than 3% 3% to less than 5% 5,%to less than ·1 0% 0 lQ% to less than 20% 0 20% to less thlln 30% [j 30% or n1 ore Yes College expenses Auto or other major purchase Buy out co-borrower e.g. ex-spouse Pay off other bills or debts Home repairs or new construction Savings Closing costs of new mortgage Business. or investment Other (specify) 35. Did you use any ofthe following sources of funds to purchase this property? !'lot Used Proceeds from the sale of another property Savings, retirement account, inheritance, or other assets 1\ssistancc or loan from a nonprofit or government agency A s()cond lien, home equity loan, or home eq:uityljne ofcredit (HELOC) Gift or loan from family or friend Seller contribution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 [j 0 0 J)sed 0 l'!o 0 4(). When you t~o~ out this most recent mortgage or relinam;e, what was the loan amount (the dollar amount you borrowed)? 0 Don't know • VerDate Sep<11>2014 33029 ~- 4 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00051 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.021</GPH> sradovich on DSK3GMQ082PROD with NOTICES Skip toQ40--~--~--.,._.,.__.......,.. 95606 • Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 41. \Vllat is th~ monthly payment, including the amount paid to escrow for taxes and insurance? $ - - - - : - - - .00 41; 'fhe Closing I)isclosure statement you received at dosing shows. theloandosing costs and other closing costs separately. What were the loan closing costs yon paid on this loan? 0Don'tknow 0 Don't k11ow $ .,..-------·00 A2. Wltat is the interest rate oh this mortgagt!'! 48. How were tl1e total closhtg c.osts (loan 0 Don't know · • ~,;osts and other costs) for thi.s{oan paid? 43. Isthis an adjustable-rate mortgage (one that alluws the interest rate to change .over the life of the loan)? Yes 0 By me or a co-signer (check or 1vire transfer) By lender/mortgage brok;er By seller/builder Added to the mortgage amount Don't )i:Jiow No 0 0No 0 0 D 0 0 0 0 D 0 D D 0 0 0 Other (specify) 0Don'.tknow 44. Atthe time uf applic;cttion; did the lender give 0 you the option. to .set/lock the interest rate so that .it wollld not. change before closing'? Loan. had no closing costs 49. Were the loan costs you paid simila1· to whatyou DYes D.No had expected to pay based on the Loan.Rstimates or Closing Dis~losures you received? 0Don'tknow 0No DYes. 50. Dld youseek input about your dosing documents from any of the following people'! 45. When was the interest rate set/locked on this loan'l Yes 0 At application 0 Between application and Closing Real estate agent Personal attori1ey Title agent 46. Does this mortgage have any ofthefollowing .· features? Yes No 0 D D 0 D D D 0 D D D A prepayment penalty (fee if the mortgage is paid off early) An escrow account for taxes and/or homeowner insurance A balloon payment Int~:~rcst~only .payments Private mortgage insurance 0 D 0 D 51,. At any time after you made your fin.al loan applicatio11 di<l anyofthe following change'? Higher D • Same T..ower 0 D 0 D 0 0 0 0 D D D 33029 ~- 5 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00052 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.022</GPH> sradovich on DSK3GMQ082PROD with NOTICES 0 0 Other (spec1fy) Monthly payment In'tl':rest rate Other fees Amount of money needed to close loan VerDate Sep<11>2014 D 0 0 0 0 Trusted friend or relativewho is not a co~sigmwoo the mortgage Housing counselor Doll' I IU!ow D 0 0 0 0 0 Settle1,11ent agent 0Around NQ 0 Lender/mortgage broker 95607 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices • 52. Did you fuce any unpleasant "surpri!>'CS" a1 your loan closing? 57. When did you buy or g~t this property'! If you refinanced,thedate you originally bought.or got the property'! 0 No "'-Skip to Q54 DYes-,. . 53. What unpl~msant.surpris~ did you face',' Yes Loan documents not ready Closing did not occur as origin:>lly scheduled Three day rule required re-disclosure Mortgage terms different at dosirig interest rate; monthly payment More cash needed at closing e.g. escrow, unexpected fees Asked. to sign .blank document~ Rushed at closing or not given time to read documents No 0 0 0 0 0 0 0 0 0 0 $ ---..,....-,------,- .00. 0 0 -,...,.,--'--month year 58. What was.the purch1tse prke of this property, or. ifyou built it, the construction and land cost? 0 0 0 • 0 DDon'tknow 59.· How did you acquire this. property? Markone answer. 0 0 Purchased an "xisting home Purchased a newly·bui1t home from a builder D Ha.d or purchased land and built a house D Received a<> a gift or inheritance, Other (speCify) 54.. At the same time you toQkoutthis mortgage; did you also take out another loan on the property you finaneed with this mortgage (a D. Other (specify) - -......- - - - - - , - - - , - - .60. Which of the following .best describes thjs property? Mark one answer. second lien, home equity loan.. ora home equity line ofcredit (HELOC))? 0 Single-family detached house .~Skip to Q62 0 Mobile home or manufactured home -Skip to Q62 0 Townhouse, row house, or villa 0 2-unit, 3-unit, or 4-unitdwelling 0 ApartJpent (or condo/co-op) in apartment DNo-Sf..ipto.Q56 DYes, 55. Wh;r.t was the amount of this loan? building 0 Unit in a partly comm<1rcial structure $ - - - - , . - - - - - .00 0Don't}mow 0 Other (specify) ---,------.,-..._J 56. l{ow well could you explain to soriuionethe ..• No~ Very Somewtiat At All Process of taking out a mortgage Difference. between a fixed" and an adjustable~rate mortgage Dilierence between a prime and subprime loan Difference between a mortgage's interest rl'lte and its APR Amortization of a loan Consequences ofnotmaking required mortgage .pa)111ent!? D D 0 D D 0 D D 0 D D D 6L Does this lnortgage .cover more than one unit? 0No 0 62. About how mueb do you think: this property is worth in terms of what you could sell jt for now? DDon~tknow 0 0 63. Do you rent .out all or any .portion of.tllis property? D 0 D 0 0 DYes~ Relationship between discount points (lndinterest rate D 0 0 64; How much rent do you receive annually'! Reason payments into an escrow account can change D 0 0 0No .Sldp to Q65 $ - - - - - - - .00 pcrycar • VerDate Sep<11>2014 33029 ~18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.023</GPH> sradovich on DSK3GMQ082PROD with NOTICES D Difference between lender's and <Jwner' s title insurance 95608 71. How likely is it that in the next couple of years 65. Besides you, the mortgage co-signers, and renters; does anyone else help pay the expenses for this property? DYes you wilL Not Very Somewhat At All Sell this property Move but keep thisproperty Refinance the mortgage on this property Pay off this mortgage arid own the 1Jroperty mortgage-free 0No 66. Which of the following best describes how you use this property? 0 ·· Primary residence (where you spendihe majority ofyourtime) 0Jt will be my primary residence soon 0 0 0 0 0 D 0 0 0 D D 0 0 0 0 0 } · Seasonal orsecond horne · Home for other reiatives . Skipto Q6B. Rental or. investment property Other (specify)_ _ _-.,-_ __ 72. What is your current marital status? 0Separated []. .. ma.rried.· 0Divorced ~:-::;--/~=...,... month year 0Wicfowed Significant Little/No Increase Change 0 Significant· Decrease 0 DYes D D 0 D 0 0 0 0 ONo D 0 ·• Please dnswerthefoliowing questions for you and your spouse orpartner.. ifapplicable. 0 D D ·. · ·.·, ·. ... . · 73 .. Do yQu h~ve a partner whO shal"e.'il the decision-making and responsibilities of running yQur household .but is not yl}ur· legal spouse'! 68. In the last couple years, how has the following .changed in tbeneighborhood where this property is located? Number of homes for sale Number of vacant homes Number of homes for rent Number offorec.losures or short sales House prices Ov.erall desirability of living there h. 0Married- Skip to Q74 67.. If primary residence, when did you move into this property? 0 0 0 74. Age at last birthday: Spouse( You ___ years 69. lVhat do you think will happen to the prices of homes. in this neighboihood.over the.next cou pie. ofyears? Partner --._years 75, Sex: You Male 0 Female D Increase a Jot 0 Increase a little 0 0 Remainahout the same 0 Decrease a little D De.crease a lot Spouse/ Partner 0 0 76. Highest level. ofedu~;:ation achieved: SPf)usef You Some schooling High school graduate Technic.al school 70, In the next couple oryears, how do you expect th() overall desirability of living in this neighborhood to change? 0 Some college College gradvate Postgraduate s1:tldies Become more deSirable 0Stay aboutthe same sradovich on DSK3GMQ082PROD with NOTICES 0 Becdn1e less desirable • VerDate Sep<11>2014 • Parmer 0 0 0 0 0 0 D· O 0 tJ 0 0 33029 ~- 7 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00054 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.024</GPH> • Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95609 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices • 82. Approximately how much is y~mr total.annual household income from all so:urccs (wages, '77. llispanic or Latino: You Spouse/ Partner 0 0 You Spouse! Partner No 78. RaL~: Murk salaries, tips, interest, child support, investment income, .retirement, s.ocialsecurity, andalimonJ~'t 0 0 0 0 Less. than $35,000 $35,000 to .$49,999 0 $5o,ooo to $74,999 0 $75,000 to $99,999 0$100,000 to $174,999 0 $175,00(1 or more that apply. 0 0 0 0 0 'A<Jlltc Black or African .}\merican American Indian or Alaska Native Asian Natiyc B!lwaiian or Pacific Islander 0 0 0 0 0 83. How does this •otal annual household income compare towhatitis in a "normal" year'! 0 Higher than nonn al ONoimal 0 Lower thannormal 79. Current work status: Mark allthatapp4y. spouse/ You Self-employed full time Self-employed part time Employed full time Employed part time Retired Unemployed, temporarily laid-off or on leave Not work41gfor pay (student homemaker, disabied) sO. 0 0 0 0 0 J>artuel' 0 0 84. Does your total annual household income in dude any oftbdollowing sources? 0 Yes 0 0 0 D Wages or salary Business or self-employment Interest or dividends Alimony or child stlpport Social Security, pension or other retirement benefits 0 D 0 0 Partner 0 0 0 0 0 0 0 0 0 No 0 D 0 0 0 0 0 0 86. Which~ ofthefollowing staternents best describt)S the amount of financial risk you are willing to .take when you save or make investments? 0 0 No, never serveq in the U.S. Anned Forces 0 Yes 40l(k), 4Cl3(b), IRA, or pension plan Stocks, bonds, .or mutuaHunds (noUn retirermmt accounts qr penstonplans) Certificates of deposit Investment real Spouse! on active duty in the past, but not now No, 'never on active duty for in:itiallbasic training 0 0 ft:~llowing? Armed Forces as well as activation from the Reserves or National Guard). Y<:s, n9w on active duty No 0 8S; Does anyont.J in your household have any of the Ever seryed on active duty in the U.S. Armed Forces: (Active duty includes serving in the U.S You • 0 0 8L.Besides you (and your spouselpartner)who else live.sin your household? lvlark all that app~v. 0 0 Children/grandchildren under agel B 0 Children/grandchildren age 18-22 0 Chi!dren/gmndch1Jdren age 23 or older 0 Parents ofyou or your spouse or partner tl Other relatives like siblings or .cousins 0 Non"relatives 0 0 Take suhstantial financialrisks expecting to earn substantial retun1s Takeabove-avcrage financial ex:pectingto earn aboye-average returns Take aviit:age financial risks expecting to earn average returns Not will in~ to take any .financial risks • VerDate Sep<11>2014 33029 ~- 8 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00055 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.025</GPH> sradovich on DSK3GMQ082PROD with NOTICES 0Nooneelse 95610 87. Do you agr.ee or disagree with the following statements? Agree 90. In the last cou pie years, bow have the following changed for you (and your spouse/partner)? Di~agree Owning a home is a good financial investment 0 0 Most mortgage lenders generally treat born:Jwers well 0 0 Most mortgage lenders would offer me roughly the same rates and fees 0 0 0 Signi)'icant Little/No Increase Change 0 Late payments will lower mY credit rating Lenders shouldn't care about any late payments, only whether loans ate fully repaid 0 0 D 0 D 0 0 0 0 0 D 92. How likely is it that in the next couple of years you (or your spouse/partner) will f;tce ... D 0 D 0 0 0 D D D 0 0 0 Difll~ulties·makirtgyour "\o D D 0 D 0 0 D D D D D D D D D D Disaster affecting your (or your spquse/partner's) work Moved within the area (less than 50 miles) Moved to a new atea (50 m.i!esor more) D Retirement D Disability or serious illness..of household member Disaster affecting a property you own Decrease· D Not Very Stimewltat· At All Ye~ Separated, divorced or partner left Married, remarried ornew partner Death of a household member Addition to your household (not including spouse/partner) Person leaving your household (not including spouse/partner) 0 mortgage payments A layoff, unemployment, or forced reduction in how·s Some .other personal financial crisis 93. If your household faced an unexpected peuonalfinancial crisis in the next couple of years, how likely is it y1.1u could... Not Very Somewhat At All Pay your bills for the next 3 months without borrm\~ng D .Get significant financiilllielp ftom family or friends D 0 D D D 0 D D 0 0 0 No 0 0 0 0 0 0 0 D Significantly increase your income Yes D Borrow a significant amount from a bank or credit union 89. In the tast cpuple of years, have any oft he follo'ft-h1g happened to you (or yout· spouse/partner)? sradovich on DSK3GMQ082PROD with NOTICES Significant <::hanw Household income Housing expenses. Non-housing expenses SS. Inthe last couple of years, have any oftht.> following happened to you? 0 0 D 0 D 0 D • VerDate Sep<11>2014 0 lilcrease 0 Starting a second job 0 D D 91 .. In the next couple of years, how do you expect . the following to change for you (and your spouse/partner)? 0 I would consider counseling or taking a course about managing my finances if I faced financial difficulties Business failure A personal financial crisis Decrease Signifi<:ant Little/No It is 0kay to defaultorsropmaking mortgage payments if it is in the borrow~r's ftnancial.interest Layoff, unemployment, or reduced hours of work Retirement Promotion Starting anew.job Significant 0 D 0 D D Household income Housing expenses Non-hou-;ing expenses 33029 ~ 9 18:54 Dec 27, 2016 Jkt 241001 PO 00000 • Frm 00056 Fmt 4703 Sfmt 4725 E:\FR\FM\28DEN1.SGM 28DEN1 • EN28DE16.026</GPH> • Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95611 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices • • The Federal Housing Finance Agency and the Consumer Rnancial Protection Bureau thank you forcompleting this survey. We have provided the space below if ypu wish to share additional comments or further explain any of youranswers. Please do not put your name or address on the questionnaire. Please. use .:the enclosed business reply env.efope to return your completed questionnaire. FHFA 1600 Research Blvd, RC 816 Rockville,IVID 20850 • VerDate Sep<11>2014 33029 ~- 10 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00057 Fmt 4703 Sfmt 9990 E:\FR\FM\28DEN1.SGM 28DEN1 EN28DE16.027</GPH> sradovich on DSK3GMQ082PROD with NOTICES For .any questions aboutthe survey or online access you can call toll free 1-855-339-7877. 95612 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices [FR Doc. 2016–31386 Filed 12–27–16; 8:45 am] BILLING CODE 8070–01–P FEDERAL MARITIME COMMISSION [Petition No. P4–16] sradovich on DSK3GMQ082PROD with NOTICES Petition of the Coalition for Fair Port Practices for Rulemaking; Notice of Filing and Request for Comments Notice is hereby given that the Coalition for Fair Port Practices (hereinafter Petitioner), has petitioned the Commission pursuant to 46 CFR 502.51 of the Commission’s Rules of Practice and Procedure, to initiate a rulemaking ‘‘to clarify what constitutes ‘just and reasonable rules and practices’ with respect to the assessment of demurrage, detention, and per diem charges by ocean common carriers and marine terminal operators when ports are congested or otherwise inaccessible.’’ Petitioner proposes and provides the text of a proposed rule and submits fifteen verified statements or supporting letters from its members which include ‘‘a broad cross-section of industry stakeholders, including shippers, receivers, motor carriers, port draymen, freight forwarders, 3PLs, and customs brokers.’’ In order for the Commission to make a thorough evaluation of the Petition, interested persons are requested to submit views or arguments in reply to the Petition no later than February 28, 2017. Replies shall consist of an original and 5 copies, be directed to the Assistant Secretary, Federal Maritime Commission, 800 North Capitol Street NW., Washington, DC 20573–0001, and be served on Petitioner’s counsel, Karyn A. Booth, Thompson Hine LLP, 1919 M Street NW., Suite 700, Washington, DC 20036. A PDF copy of the reply must also be sent to secretary@fmc.gov. Include in the email subject line ‘‘Petition No. P4–16.’’ Replies containing confidential information should not be submitted by email. The Commission will provide confidential treatment for identified confidential information to the extent allowed by law. A reply containing confidential information must include: • A transmittal letter requesting confidential treatment that identifies the specific information in the reply for which protection is sought and demonstrates that the information is a trade secret or other confidential research, development, or commercial information. • A confidential copy of the reply, clearly marked ‘‘Confidential- VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 Restricted’’, with the confidential material clearly marked on each page. • A public version of your reply with the confidential information excluded or redacted, marked ‘‘Public Version— confidential materials excluded.’’ The Petition will be posted on the Commission’s Web site at http:// www.fmc.gov/P4-16. Replies filed in response to this Petition also will be posted on the Commission’s Web site at this location. Parties participating in this proceeding may elect to receive service of the Commission’s issuances in this proceeding through email in lieu of service by U.S. mail. A party opting for electronic service shall advise the Office of the Secretary in writing and provide an email address where service can be made. Rachel E. Dickon, Assistant Secretary. [FR Doc. 2016–31356 Filed 12–27–16; 8:45 am] BILLING CODE 6731–AA–P FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than January 11, 2017. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690–1414: 1. James W. Mease, Winterset, Iowa; James W. Mease Profit Sharing & 401(k), Winterset, Iowa; Justin Mease, Ankeny, Iowa; Sue A. Mease, Winterset, Iowa; Jane M. Reed Revocable Trust, Jane M. Reed Trustee, Winterset, Iowa; John B. Reed Revocable Trust, John B. Reed Trustee, Winterset, Iowa; April Schaefer, Cedar Rapids, Iowa; David Trask, Winterset, Iowa; Judith Trask, Winterset, Iowa; Mary Reed Alles, PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 Chillicothe, Missouri; Fred H. Reed, Johnston, Iowa; Honor Joel Sears, Spokane, Washington; as a group acting in concert, to acquire more than 10 percent of the voting shares of Farmers and Merchants Bancorp, and thereby indirectly control Farmers & Merchants State Bank, both in Winterset, Iowa. Board of Governors of the Federal Reserve System, December 22, 2016. Yao-Chin Chao, Assistant Secretary of the Board. [FR Doc. 2016–31360 Filed 12–27–16; 8:45 am] BILLING CODE 6210–01–P FEDERAL RESERVE SYSTEM [Docket No. 1530; RIN 7100 AE 44] Regulation Q; Regulatory Capital Rules: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies Board of Governors of the Federal Reserve System (Board). ACTION: Notice. AGENCY: Under the rule of the Board regarding risk-based capital surcharges for global systemically important bank holding companies (GSIB surcharge rule), the Board is providing notice of the aggregate global indicator amounts for purposes of a calculation that is required under the GSIB surcharge rule for 2016. DATES: Effective: December 28, 2016. FOR FURTHER INFORMATION CONTACT: Juan C. Climent, Manager, (202) 872–7526, or Holly Kirkpatrick, Supervisory Financial Analyst, (202) 452–2796, Division of Supervision and Regulation; or Mark Buresh, Senior Attorney, (202) 452–5270, or Mary Watkins, Attorney, (202) 452–3722, Legal Division. Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) users may contact (202) 263–4869. SUPPLEMENTARY INFORMATION: The Board’s GSIB surcharge rule establishes a methodology to identify global systemically important bank holding companies in the United States (GSIBs) based on indicators that are correlated with systemic importance.1 Under the GSIB surcharge rule, a firm must calculate its GSIB score using a specific formula (Method 1). Method 1 uses five equally weighted categories that are correlated with systemic importance— size, interconnectedness, crossjurisdictional activity, substitutability, SUMMARY: 1 See E:\FR\FM\28DEN1.SGM 12 CFR 217.402, 217.404. 28DEN1

Agencies

[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Notices]
[Pages 95596-95612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31386]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2016-N-16]


Proposed Collection; Comment Request

AGENCY: Federal Housing Finance Agency.

ACTION: 30-Day Notice of submission of information collection for 
approval from Office of Management and Budget.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995, the Federal Housing Finance Agency (FHFA or the Agency) is 
seeking public comments concerning the information collection known as 
the ``National Survey of Mortgage Originations'' (NSMO), which has been 
assigned control number 2590-0012 by the Office of Management and 
Budget (OMB) (the collection was previously known as the ``National 
Survey of Mortgage Borrowers''). FHFA

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intends to submit the information collection to OMB for review and 
approval of a three-year extension of the control number, which is due 
to expire on December 31, 2016.

DATES: Interested persons may submit comments on or before January 27, 
2017.

ADDRESSES: Submit comments to the Office of Information and Regulatory 
Affairs of the Office of Management and Budget, Attention: Desk Officer 
for the Federal Housing Finance Agency, Washington, DC 20503, Fax: 
(202) 395-3047, Email: OIRA_submission@omb.eop.gov. Please also submit 
comments to FHFA, identified by ``Proposed Collection; Comment Request: 
`National Survey of Mortgage Originations, (No. 2016-N-16)' '' by any 
of the following methods:
     Agency Web site: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. If you submit your 
comment to the Federal eRulemaking Portal, please also send it by email 
to FHFA at RegComments@fhfa.gov to ensure timely receipt by the agency.
     Mail/Hand Delivery: Federal Housing Finance Agency, Eighth 
Floor, 400 Seventh Street SW., Washington, DC 20219, ATTENTION: 
Proposed Collection; Comment Request: ``National Survey of Mortgage 
Originations, (No. 2016-N-16).''
     U.S. Mail, United Parcel Service, Federal Express, or 
Other Mail Service: The mailing address for comments is: Alfred M. 
Pollard, General Counsel, Attention: Comments/2016-N-16, Federal 
Housing Finance Agency, 400 Seventh Street SW., Eighth Floor, 
Washington, DC 20219.
    We will post all public comments we receive without change, 
including any personal information you provide, such as your name and 
address, email address, and telephone number, on the FHFA Web site at 
http://www.fhfa.gov. In addition, copies of all comments received will 
be available for examination by the public on business days between the 
hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, 
Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an 
appointment to inspect comments, please call the Office of General 
Counsel at (202) 649-3804.

FOR FURTHER INFORMATION CONTACT: Forrest Pafenberg, Supervisory 
Economist, Office of the Chief Operating Officer, by email at 
Forrest.Pafenberg@fhfa.gov or by telephone at (202) 649-3129; or Eric 
Raudenbush, Associate General Counsel, by email at 
Eric.Raudenbush@fhfa.gov or by telephone at (202) 649-3084, (these are 
not toll-free numbers), Federal Housing Finance Agency, 400 Seventh 
Street SW., Washington, DC 20219. The Telecommunications Device for the 
Hearing Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

A. Background

    The NSMO is a recurring quarterly survey of individuals who have 
recently obtained a loan secured by a first mortgage on single-family 
residential property. The survey questionnaire is sent to a 
representative sample of approximately 6,000 recent mortgage borrowers 
each calendar quarter and typically consists of between 90 and 95 
multiple choice and short answer questions designed to obtain 
information about borrowers' experiences in choosing and in taking out 
a mortgage.\1\ The questionnaire may be completed either on paper or 
electronically online, and is available in both English and Spanish. 
The NSMO is sponsored by FHFA and is one component of the National 
Mortgage Database Project, an ongoing joint effort of FHFA and the 
Consumer Financial Protection Bureau (CFPB).
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    \1\ A copy of the most recent NSMO questionnaire appears at the 
end of this document. In addition, copies of the questionnaire in 
both English and Spanish can be accessed online at: http://www.fhfa.gov/Homeownersbuyer/Pages/National-Survey-of-Mortgage-Originations.aspx.
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    Section 1324 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (Safety and Soundness Act) requires that FHFA 
prepare annually a detailed report on the residential mortgage market 
activities of two of its regulated entities--the Federal National 
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage 
Corporation (Freddie Mac) (collectively, ``the Enterprises'')--and to 
submit that annual report to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representatives.\2\ At a minimum, the report must: (1) 
Address the extent to which the Enterprises are fulfilling their 
statutory duties with respect to the residential mortgage markets, 
including their duty to serve underserved markets; (2) aggregate and 
analyze relevant data on income to assess the compliance of each 
Enterprise with statutory housing goals established under section 1331 
of the Safety and Soundness Act; \3\ (3) aggregate and analyze data on 
income, race, and gender by census tract and other relevant 
classifications, and compare such data with larger demographic, 
housing, and economic trends; (4) identify the extent to which each 
Enterprise is involved in mortgage purchases and secondary market 
activities involving subprime and nontraditional loans; (5) compare the 
characteristics of subprime and nontraditional loans purchased and 
securitized by each Enterprise to other loans purchased and securitized 
by each Enterprise; and (6) compare the characteristics of high-cost 
loans purchased and securitized, but not held in portfolio, by each 
Enterprise to such securitized loans that are retained in portfolio or 
repurchased by the Enterprise, including such characteristics as the 
purchase price of the property securing the mortgage, the loan-to-value 
ratio of the mortgage, the terms of the mortgage, the creditworthiness 
of the borrower, and any other relevant data, as determined by the 
Director of FHFA.\4\
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    \2\ See 12 U.S.C. 4544(a). Congress added the requirements of 
section 1324 to the Safety and Soundness Act in 2008. See Housing 
and Economic Recovery Act of 2008, Public Law 110-289, sec. 1125, 
122 Stat. 2654, 2693-95 (2008).
    \3\ 12 U.S.C. 4561.
    \4\ See 12 U.S.C. 4544(b).
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    Section 1324 further requires that FHFA conduct a monthly survey to 
collect data needed to adequately analyze the matters that must be 
addressed in the annual report.\5\ In particular, the survey must 
collect information on the characteristics of individual prime and 
subprime mortgages and the creditworthiness and other characteristics 
of the borrowers on those mortgages.\6\ It may also address such other 
matters as the Director of FHFA deems to be appropriate.\7\ The statute 
requires that FHFA compile a database of timely and otherwise 
unavailable residential mortgage market information obtained from the 
monthly survey and to make that information available to the public.\8\
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    \5\ See 12 U.S.C. 4544(c)(1).
    \6\ See 12 U.S.C. 4544(c)(2)(A), (B).
    \7\ See 12 U.S.C. 4544(c)(2)(C).
    \8\ See 12 U.S.C. 4544(c)(3).
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    As a means of fulfilling these and other statutory requirements, as 
well as to support policymaking and research regarding the residential 
mortgage markets, FHFA and CFPB jointly established the National 
Mortgage Database Project in 2012. The project is designed to provide 
comprehensive information about the U.S. mortgage market based on a 
five percent sample of residential mortgages. The project has three 
primary components: (1) The National Mortgage Database; (2) the 
quarterly NSMO; and (3) the annual

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American Survey of Mortgage Borrowers (ASMB).\9\ When fully complete, 
the National Mortgage Database will be a de-identified loan-level 
database of closed-end first-lien residential mortgage loans that is 
representative of the market as a whole, contains detailed loan-level 
information on the terms and performance of the mortgages and the 
characteristics of the associated borrowers and properties, is 
continually updated, has an historical component dating back to 1998, 
and provides a sampling frame for surveys to collect additional 
information.
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    \9\ While the NSMO solicits information about the experiences of 
borrowers who have recently obtained a mortgage, the ASMB solicits 
information on borrowers' experience with maintaining their existing 
mortgages. OMB has cleared the ASMB under the PRA and assigned it 
control no. 2590-0015, which expires on July 31, 2019.
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    The core data in the National Mortgage Database are drawn from a 
random 1-in-20 sample of all closed-end first-lien mortgage loans 
outstanding at any time between January 1998 and the present from the 
files of Experian, one of the three nationwide credit reporting 
agencies. The National Mortgage Database currently contains data on 
approximately 11.6 million mortgage loans. Between 80,000 and 100,000 
mortgages, drawn from a random 1-in-20 sample of loans newly reported 
to Experian, are added each quarter. Additional information on the 
mortgages in the datasets is drawn from other existing sources, 
including, but not limited to the Home Mortgage Disclosure Act (HMDA) 
data released by the Federal Financial Institutions Examination Council 
(FFIEC), property valuation models, transactional data maintained by 
local governments, and administrative data files maintained by the 
Enterprises and by federal agencies. Mortgages are followed in the 
National Mortgage Database until they terminate through prepayment 
(including refinancing), foreclosure, or maturity.
    The NSMO was developed to complement the National Mortgage Database 
by providing critical and timely information--not available from 
existing sources--on the range of nontraditional and subprime mortgage 
products being offered, the methods by which these mortgages are being 
marketed, and the characteristics of borrowers for these types of 
loans. In particular, the survey questionnaire is designed to elicit 
directly from mortgage borrowers information on the characteristics of 
borrowers and on their experiences in finding and obtaining a mortgage 
loan, including: Their mortgage shopping behavior; their mortgage 
closing experiences; their expectations regarding house price 
appreciation; and critical financial and other life events effecting 
their households, such as unemployment, large medical expenses, or 
divorce. The survey questions do not focus on the terms of the 
borrowers' mortgage loans because these fields are available in the 
Experian data. However, the NSMO collects a limited amount of 
information on each respondent's mortgage to verify that the Experian 
records and survey responses pertain to the same mortgage.
    Each wave of the NSMO is sent to the primary borrowers on about 
6,000 mortgage loans, which are drawn from a simple random sample of 
the 80,000 to 100,000 newly originated mortgage loans that are added to 
the National Mortgage Database from the Experian files each quarter (at 
present, this represents an approximately 1-in-15 sample of loans added 
to the National Mortgage Database and an approximately 1-in-300 sample 
of all mortgage loan originations). By contract with FHFA, the conduct 
of the NSMO is administered through Experian, which has subcontracted 
the survey administration through a competitive process to Westat, a 
nationally-recognized survey vendor.\10\ Westat also carries out the 
pre-testing of the survey materials. Wave 1 of the NSMO was mailed out 
in April 2014, and a new wave of the survey has been conducted each 
quarter since. To date, eleven quarterly waves of the survey have been 
completed.
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    \10\ The Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., 
requires that the survey process, because it utilizes borrower names 
and addresses drawn from credit reporting agency records, must be 
administered through Experian in order to maintain consumer privacy.
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B. Need For and Use of the Information Collection

    FHFA views the National Mortgage Database Project as a whole, 
including the NSMO, as the monthly ``survey'' that is required by 
section 1324 of the Safety and Soundness Act. Core inputs to the 
National Mortgage Database, such as a regular refresh of the Experian 
data, occur monthly, though NSMO itself does not. In combination with 
the other information in the National Mortgage Database, the 
information obtained through the NSMO is used to prepare the report to 
Congress on the mortgage market activities of Fannie Mae and Freddie 
Mac that FHFA is required to submit under section 1324, as well as for 
research and analysis by FHFA and CFPB in support of their regulatory 
and supervisory responsibilities related to the residential mortgage 
markets. The NSMO is especially critical in ensuring that the National 
Mortgage Database contains uniquely comprehensive information on the 
range of nontraditional and subprime mortgage products being offered, 
the methods by which these mortgages are being marketed and the 
characteristics--and particularly the creditworthiness--of borrowers 
for these types of loans. In the future, the information may be used to 
provide a resource for research and analysis by other federal agencies 
and by academics and other interested parties outside of the 
government.
    FHFA is also seeking OMB approval to conduct cognitive pre-testing 
of the survey materials. The Agency will use information collected 
through that process to assist in drafting and modifying the survey 
questions and instructions, as well as the related communications, to 
read in the way that will be most readily understood by the survey 
respondents and that will be most likely to elicit usable responses. 
Such information will also be used help the Agency decide on how best 
to organize and format the survey questionnaires.
    The OMB control number for this information collection is 2590-
0012. The current clearance for the information collection expires on 
December 31, 2016.

C. Burden Estimate

    FHFA has analyzed the hour burden on members of the public 
associated with conducting the survey (12,000 hours) and with pre-
testing the survey materials (30 hours) and estimates the total annual 
hour burden imposed on the public by this information collection to be 
12,030 hours. The estimate for each phase of the collection was 
calculated as follows:

I. Conducting the Survey

    FHFA estimates that the NSMO questionnaire will be sent to 24,000 
recipients annually (6,000 recipients per quarterly survey x 4 calendar 
quarters). Although, based on historical experience, the Agency expects 
that only 30 to 35 percent of those surveys will be returned, it has 
assumed that all of the surveys will be returned for purposes of this 
burden calculation. Based on the reported experience of respondents to 
prior NSMO questionnaires, FHFA estimates that it will take each 
respondent 30 minutes (0.5 hours) to complete the survey, including the 
gathering of necessary materials to respond to the questions. This 
results in a total annual burden estimate of 12,000 hours for the 
survey phase of this collection (24,000

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respondents x 0.5 hours per respondent = 12,000 hours annually).

II. Pre-Testing the Materials

    FHFA estimates that it will pre-test the survey materials with 30 
cognitive testing participants annually. The estimated participation 
time for each participant is one hour, resulting in a total annual 
burden estimate of 30 hours for the pre-testing phase of the collection 
(30 participants x 1 hour per participant = 30 hours annually).

D. Comments Received in Response to Initial Notice

    In accordance with the requirements of 5 CFR 1320.8(d), FHFA 
published an initial notice requesting comments regarding this 
information collection in the Federal Register on September 13, 
2016.\11\ The 60 day comment period closed on November 14, 2016. FHFA 
received two comment letters, one of which recommended revisions to the 
content of the survey questionnaire and the other of which recommended 
measures to increase survey response rates. FHFA has carefully 
considered each of the suggested revisions, but, as explained below, 
has decided not to implement any of those suggestions at this time.
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    \11\ See 81 FR 62889 (Sept. 13, 2016).
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    The first comment letter was from an individual who has served in 
various capacities with a community association trade group and who is 
the president of a company that provides online technology in support 
of the sale, resale, finance, and refinance of homes in community 
associations.\12\ The letter asserts that certain questions in the NSMO 
questionnaire ``fail to adequately and effectively recognize'' the role 
of community associations in U.S. home ownership and that, as a result, 
data from the NSMO regarding community associations ``has nominal 
heuristic and statistical value at best.'' It suggests adding several 
questions to the NSMO questionnaire, and revising several existing 
questions, to elicit more information relevant to community 
associations.
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    \12\ The letter explains that community associations are 
``housing management organizations that are an out-growth of 
traditional subdivision and zoning controls'' and include 
condominiums, cooperatives, and planned communities.
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    Specifically, the letter first suggests revising Question 60 to 
elicit more specific information on the type of property that is 
associated with the respondent's mortgage and adding two questions as 
to whether the respondent's property is in a community association and, 
if so, the specific type of community association. FHFA believes that, 
while such questions could be suitable for a survey that focuses on 
housing structure, they would not be appropriate for the NSMO, which 
focuses on consumers' experience in seeking and obtaining a residential 
mortgage loan.\13\ The commenter also suggests adding a question to 
elicit information on the respondent's level of familiarity with 
various types of community association fees. Again, such a question 
would be beyond the scope of the NSMO, which does not attempt to 
capture information on the cost of a mortgage or on fees paid at 
origination or over the life of the mortgage.
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    \13\ Both the American Housing Survey (sponsored jointly by the 
Department of Housing and Urban Development and the Census Bureau) 
and the American Community Survey (sponsored by the Census Bureau) 
would be more appropriate vehicles for eliciting such information.
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    Finally the letter suggests revising the answer choices for 
Questions 7, 39, and 50 to allow respondents to indicate, respectively: 
Whether they used any of the proceeds from a refinance to pay community 
association fees; whether and to what extent community association 
documents or officials may have provided them with information about 
mortgages or mortgage lenders; and whether and to what extent they 
sought input about their mortgage loan closing documents from officials 
of a community association. FHFA notes that each of those questions 
permits a respondent to choose ``other'' and to write in a specific 
answer if none of the other answer choices are applicable. To date, 
none of the questions have elicited an ``other'' response in the vein 
of any of the answer choices that the commenter suggests adding. 
Accordingly, FHFA does not see a need to revise any of the questions in 
the manner suggested.
    The second comment letter, from a law school professor, states that 
the NSMO is very important to understanding the health of the mortgage 
market and agrees that the collection is necessary for the proper 
performance of FHFA functions. However, it also expresses a concern 
that, given the length of the survey questionnaire, those recipients 
who ultimately decide to respond will not be representative of the 
typical borrower. It suggests two ways of encouraging a response from 
recipients who might otherwise be reluctant to take the time to 
complete the survey: (1) Providing a greater incentive; and (2) 
allowing recipients the option of completing a shorter version of the 
questionnaire.
    FHFA agrees that non-response bias (the bias that results when 
respondents differ systematically from non-respondents) is an important 
concern and the Agency has spent, and continues to spend, significant 
time considering ways to increase response rates and to mitigate the 
effects of non-response bias. In developing the NSMO, the Agency 
consulted with top experts on conducting consumer surveys, who 
recommended an up-front payment of five dollars as the most effective 
way of incentivizing survey recipients to respond. FHFA adopted this 
recommendation. In addition, based on the results of the first seven 
waves of the NSMO, these experts also evaluated the expected effect on 
the response rate of increasing or decreasing the number of questions 
and the length of the questionnaire. Both experts opined that 
shortening the questionnaire would not significantly increase the 
response rate.
    With respect to the mitigation of non-response bias when analyzing 
survey responses, FHFA has followed best practices of survey sampling 
analysis. The availability in the National Mortgage Database of 
extensive credit and administrative data on both responding and non-
responding borrowers gives FHFA the ability to construct non-response 
weights with more accuracy than is possible for most surveys.

E. Comment Request

    In accordance with the requirements of 5 CFR 1320.10(a), FHFA is 
publishing this second notice to request comments regarding the 
following: (1) Whether the collection of information is necessary for 
the proper performance of FHFA functions, including whether the 
information has practical utility; (2) the accuracy of FHFA's estimates 
of the burdens of the collection of information; (3) ways to enhance 
the quality, utility and clarity of the information collected; and (4) 
ways to minimize the burden of the collection of information on members 
and project sponsors, including through the use of automated collection 
techniques or other forms of information technology. Comments should be 
submitted in writing to both OMB and FHFA as instructed above in the 
Comments section.

    Dated: December 22, 2016.
Kevin Winkler,
Chief Information Officer, Federal Housing Finance Agency.

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[FR Doc. 2016-31386 Filed 12-27-16; 8:45 am]
 BILLING CODE 8070-01-P