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