30-Day Notice of Proposed Information Collection: Quality Control Requirements for Direct Endorsement Lenders; OMB Control No.: 2502-0600, 81947 [2020-27771]

Download as PDF Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices information technology, e.g., permitting electronic submission of responses. HUD encourages interested parties to submit comment in response to these questions. C. Authority Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35. John Gibbs, Principal Deputy Assistant Secretary for Community Planning and Development. [FR Doc. 2020–27764 Filed 12–16–20; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–7024–N–55] 30-Day Notice of Proposed Information Collection: Quality Control Requirements for Direct Endorsement Lenders; OMB Control No.: 2502–0600 Office of the Chief Information Officer, HUD. ACTION: Notice. AGENCY: HUD has submitted the proposed information collection requirement described below to the Office of Management and Budget (OMB) for review, in accordance with the Paperwork Reduction Act. The purpose of this notice is to allow for an additional 30 days of public comment. DATES: Comments Due Date: January 19, 2021. ADDRESSES: Interested persons are invited to submit comments regarding this proposal. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/ Start Printed Page 15501PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management Officer, QDAM, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email Colette Pollard at Colette.Pollard@ hud.gov or telephone 202–402–3400. Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Relay Service at (800) 877–8339. This is not a toll-free number. Copies of available documents submitted to OMB may be obtained from Ms. Pollard. SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is SUMMARY: VerDate Sep<11>2014 18:52 Dec 16, 2020 Jkt 253001 seeking approval from OMB for the information collection described in Section A. A. Overview of Information Collection Title of Information Collection: Quality Control Requirements for Direct Endorsement Lenders. OMB Approval Number: 2502–0600. Type of Request: Revision. Form Number: Not Applicable. Description of the need for the information and proposed use: Per 24 CFR 202.8(3), a Direct Endorsement (DE) lender that sponsors third party originators (TPOs) is, ‘‘responsible to the Secretary for the actions of its third party originators or mortgagees in originating loans or mortgages, unless applicable law or regulation requires specific knowledge on the part of the party to be held responsible.’’ As a result, DE lenders are responsible for conducting quality control reviews on TPO originations of FHA-insured mortgage loans and ensuring that their Quality Control Plans contain this oversight provision. This creates an information collection burden on DE lenders, since these institutions must also conduct quality control on loans they originate and underwrite. DE lenders must conduct quality control reviews on a sample of loans that they originate or underwrite, including loans originated by TPOs. For the purposes of this information collection, it is assumed that the number of loans reviewed by each DE lender will comply with the Sample Size Standard and Sample Composition Standard described in HUD Handbook 4000.1, Section V.A.3.a. In addition, under 24 CFR 203.255(c) and (e), HUD conducts both pre- and post-endorsement reviews of loans submitted for FHA insurance by DE lenders. As part of those reviews, the Secretary is authorized to determine if there is any information indicating that any certification or required document is false, misleading, or constitutes fraud or misrepresentation on the part of any party, or that the mortgage fails to meet a statutory or regulatory requirement. In order to assist the Secretary with this directive, FHA requires that lenders self-report all findings of fraud and material misrepresentation, as well any material findings concerning the origination, underwriting, or servicing of the loan that the lender is unable to mitigate or otherwise resolve. The obligation to self-report these findings creates an additional information collection burden on DE lenders. In accordance with the requirements of 5 CFR 1320.8(d), a Notice soliciting comments on this collection of PO 00000 Frm 00079 Fmt 4703 Sfmt 9990 81947 information was initially published in the Federal Register on December 21, 2010 (Volume 75, Number 244, page 80066). At that time, FHA still allowed for loan correspondents to participate in its programs and had not yet transitioned to the use of TPOs. Therefore, FHA estimated information collection burdens based on the estimated used of TPOs by DE lenders. FHA has since revised these estimates with real data that captures TPO originations of FHA-insured singlefamily mortgage loans. This revision has increased the information collection burden associated with OMB Control Number 2502–0600. Respondents: Active Title II Direct Endorsement (DE) lenders. Estimated Number of Respondents: 3,641. Estimated Number of Responses: 118,952. Frequency of Response: Annually. Average Hours per Response: 25. Total Estimated Burdens: 29,738. B. Solicitation of Public Comment This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) The accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) Ways to enhance the quality, utility, and clarity of the information to be collected; and (4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. (5) ways to minimize the burden of the collection of information on those who are to respond, including the use of automated collection techniques or other forms of information technology. HUD encourages interested parties to submit comment in response to these questions. C. Authority Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35. Colette Pollard, Department reports Management Officer, Office of the Chief Information Officer. [FR Doc. 2020–27771 Filed 12–16–20; 8:45 am] BILLING CODE 4210–67–P E:\FR\FM\17DEN1.SGM 17DEN1

Agencies

[Federal Register Volume 85, Number 243 (Thursday, December 17, 2020)]
[Notices]
[Page 81947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27771]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7024-N-55]


30-Day Notice of Proposed Information Collection: Quality Control 
Requirements for Direct Endorsement Lenders; OMB Control No.: 2502-0600

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: HUD has submitted the proposed information collection 
requirement described below to the Office of Management and Budget 
(OMB) for review, in accordance with the Paperwork Reduction Act. The 
purpose of this notice is to allow for an additional 30 days of public 
comment.

DATES:  Comments Due Date: January 19, 2021.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/Start Printed Page 
15501PRAMain. Find this particular information collection by selecting 
``Currently under 30-day Review--Open for Public Comments'' or by using 
the search function.

FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management 
Officer, QDAM, Department of Housing and Urban Development, 451 7th 
Street SW, Washington, DC 20410; email Colette Pollard at 
[email protected] or telephone 202-402-3400. Persons with hearing 
or speech impairments may access this number through TTY by calling the 
toll-free Federal Relay Service at (800) 877-8339. This is not a toll-
free number. Copies of available documents submitted to OMB may be 
obtained from Ms. Pollard.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A.

A. Overview of Information Collection

    Title of Information Collection: Quality Control Requirements for 
Direct Endorsement Lenders.
    OMB Approval Number: 2502-0600.
    Type of Request: Revision.
    Form Number: Not Applicable.
    Description of the need for the information and proposed use: Per 
24 CFR 202.8(3), a Direct Endorsement (DE) lender that sponsors third 
party originators (TPOs) is, ``responsible to the Secretary for the 
actions of its third party originators or mortgagees in originating 
loans or mortgages, unless applicable law or regulation requires 
specific knowledge on the part of the party to be held responsible.'' 
As a result, DE lenders are responsible for conducting quality control 
reviews on TPO originations of FHA-insured mortgage loans and ensuring 
that their Quality Control Plans contain this oversight provision. This 
creates an information collection burden on DE lenders, since these 
institutions must also conduct quality control on loans they originate 
and underwrite.
    DE lenders must conduct quality control reviews on a sample of 
loans that they originate or underwrite, including loans originated by 
TPOs. For the purposes of this information collection, it is assumed 
that the number of loans reviewed by each DE lender will comply with 
the Sample Size Standard and Sample Composition Standard described in 
HUD Handbook 4000.1, Section V.A.3.a.
    In addition, under 24 CFR 203.255(c) and (e), HUD conducts both 
pre- and post-endorsement reviews of loans submitted for FHA insurance 
by DE lenders. As part of those reviews, the Secretary is authorized to 
determine if there is any information indicating that any certification 
or required document is false, misleading, or constitutes fraud or 
misrepresentation on the part of any party, or that the mortgage fails 
to meet a statutory or regulatory requirement. In order to assist the 
Secretary with this directive, FHA requires that lenders self-report 
all findings of fraud and material misrepresentation, as well any 
material findings concerning the origination, underwriting, or 
servicing of the loan that the lender is unable to mitigate or 
otherwise resolve. The obligation to self-report these findings creates 
an additional information collection burden on DE lenders.
    In accordance with the requirements of 5 CFR 1320.8(d), a Notice 
soliciting comments on this collection of information was initially 
published in the Federal Register on December 21, 2010 (Volume 75, 
Number 244, page 80066). At that time, FHA still allowed for loan 
correspondents to participate in its programs and had not yet 
transitioned to the use of TPOs. Therefore, FHA estimated information 
collection burdens based on the estimated used of TPOs by DE lenders. 
FHA has since revised these estimates with real data that captures TPO 
originations of FHA-insured single-family mortgage loans. This revision 
has increased the information collection burden associated with OMB 
Control Number 2502-0600.
    Respondents: Active Title II Direct Endorsement (DE) lenders.
    Estimated Number of Respondents: 3,641.
    Estimated Number of Responses: 118,952.
    Frequency of Response: Annually.
    Average Hours per Response: 25.
    Total Estimated Burdens: 29,738.

B. Solicitation of Public Comment

    This notice is soliciting comments from members of the public and 
affected parties concerning the collection of information described in 
Section A on the following:
    (1) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) The accuracy of the agency's estimate of the burden of the 
proposed collection of information;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who are to respond; including through the use of appropriate 
automated collection techniques or other forms of information 
technology, e.g., permitting electronic submission of responses.
    (5) ways to minimize the burden of the collection of information on 
those who are to respond, including the use of automated collection 
techniques or other forms of information technology.
    HUD encourages interested parties to submit comment in response to 
these questions.

C. Authority

    Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 
Chapter 35.

Colette Pollard,
Department reports Management Officer, Office of the Chief Information 
Officer.
[FR Doc. 2020-27771 Filed 12-16-20; 8:45 am]
BILLING CODE 4210-67-P