Request for Information Regarding Small Mortgage Lending, 60186-60187 [2022-21047]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES 60186 Federal Register / Vol. 87, No. 191 / Tuesday, October 4, 2022 / Notices satisfied both the CTPAT supply chain security and trade compliance requirements. The CTPAT Trade Compliance program application includes questions about the following: • Primary Point of Contact including name, title, email address, and phone number • Business information including Company Name, Company Address, Company phone number, Company website, Company type (private or public), CBP Bond information, Importer of Record Number, and number of employees • Information about the applicant’s Supply Chain Security Profile • Trade Compliance Profile and Internal Control Operating Procedures of the applicant • Broker information • Training material for Supply Chain Security and Trade Compliance • Risk Assessment documentation and results • Period testing documentation and results • Prior disclosure history • Partner Government Agency affiliation information After an importer obtains CTPAT Trade Compliance membership, the importer will be required to submit an Annual Notification Letter to CBP confirming that they are continuing to meet the requirements of the program. This letter should include: personnel changes that impact the CTPAT Trade Compliance program; organizational and procedural changes; a summary of risk assessment and self-testing results; a summary of post-entry amendments and/or disclosures made to CBP; and any importer activity changes within the last 12-month period. Type of Information Collection: CTPAT Application. Estimated Number of Respondents: 750. Estimated Number of Annual Responses per Respondent: 1. Estimated Number of Total Annual Responses: 750. Estimated Time per Response: 20 hours. Estimated Total Annual Burden Hours: 15,000. Type of Information Collection: CTPAT Trade Compliance Application. Estimated Number of Respondents: 50. Estimated Number of Annual Responses per Respondent: 1. Estimated Number of Total Annual Responses: 50. Estimated Time per Response: 2 hours. VerDate Sep<11>2014 16:48 Oct 03, 2022 Jkt 259001 Estimated Total Annual Burden Hours: 100. Type of Information Collection: CTPAT Trade Compliance Program’s Annual Notification Letter. Estimated Number of Respondents: 50. Estimated Number of Annual Responses per Respondent: 1. Estimated Number of Total Annual Responses: 50. Estimated Time per Response: 2 hours. Estimated Total Annual Burden Hours: 100. Dated: September 27, 2022. Seth D. Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection. [FR Doc. 2022–21279 Filed 10–3–22; 8:45 am] BILLING CODE P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6342–N–01] Request for Information Regarding Small Mortgage Lending Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Development, HUD. ACTION: Request for information. AGENCY: In its 2022–2026 Strategic Plan, the Department established strategic goals to ‘‘Support Underserved Communities’’ and to ‘‘Promote Homeownership.’’ Among the goal of supporting underserved communities is to advance housing justice and proactively strengthen and protect vulnerable and underserved communities. Through this Request for Information (RFI), the Federal Housing Administration (FHA) seeks public input regarding barriers to the origination of small mortgages in the FHA program. Information provided in response to this RFI will allow FHA to identify barriers to the origination of small mortgages in the FHA program and consider the development of policies and programs that better support and expand affordable homeownership opportunities in underserved markets with lower housing prices. DATES: Comments are requested on or before December 5, 2022. Late-filed comments will be considered to the extent practicable. ADDRESSES: Interested persons are invited to submit comments responsive to this RFI. All submissions must refer to the docket number and title of the SUMMARY: PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 RFI. Commenters are encouraged to identify the number of the specific question or questions to which they are responding. Responses should include the name(s) of the person(s) or organization(s) filing the comment; however, because any responses received by HUD will be publicly available, responses should not include any personally identifiable information or confidential commercial information. There are two methods for submitting public comments. 1. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at https://www.regulations.gov. 2. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410–0500. HUD strongly encourages commenters to submit their feedback and recommendations electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a response, ensures timely receipt by HUD, and enables HUD to make comments immediately available to the public. Comments submitted electronically through the https://www.regulations.gov website can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically. Note: To receive consideration as public comments, comments must be submitted through one of the two methods specified above. Again, all submissions must refer to the docket number and title of the notice. Public Inspection of Public Comments. All comments and communications properly submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at (202) 708– 3055 (this is not a toll-free number). Individuals can dial 7–1–1 to access the Telecommunications Relay Service (TRS), which permits users to make text-based calls, including Text Telephone (TTY) and Speech to Speech (STS) calls. Copies of all comments submitted are available for inspection and downloading at https:// www.regulations.gov. E:\FR\FM\04OCN1.SGM 04OCN1 Federal Register / Vol. 87, No. 191 / Tuesday, October 4, 2022 / Notices FOR FURTHER INFORMATION CONTACT: Kevin Stevens, Acting Director, Office of Single Family Program Development, Department of Housing and Urban Development, 451 7th Street SW, Room 9266, Washington, DC 20410–0500; telephone number 202–402–4317 (this is not a toll-free number). Individuals can dial 7–1–1 to access the Telecommunications Relay Service (TRS), which permits users to make text-based calls, including Text Telephone (TTY) and Speech to Speech (STS) calls. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with NOTICES I. Background HUD’s 2022–2026 Strategic Plan,1 released in March 2022, established strategic goals to ‘‘Support Underserved Communities’’ and to ‘‘Promote Homeownership.’’ Among the objectives of supporting underserved communities is to ‘‘Advance Housing Justice,’’ which includes expanding the Department’s role in proactively strengthening and protecting vulnerable and underserved communities. Borrowers often experience difficulty finding affordable options to finance the purchase or refinance of properties below certain price thresholds, especially in areas where home values are low. FHA’s mission is to provide mortgage financing options for low- to moderateincome borrowers who are not well served by the private mortgage market, including those seeking small mortgage. HUD understands that a primary barrier to small mortgage lending is the costs to originate and service small mortgages in relation to the limited potential compensation afforded by these loans. Therefore, lenders do not find it economically feasible to originate mortgages with low principal balances. This lack of financing availability for mortgages with low principal balances creates a significant barrier to affordable homeownership for underserved households, particularly in certain geographic areas. Under Title II of the National Housing Act (NHA),2 FHA insures loans made by FHA-approved mortgagees for the purchase or refinance of 1–4 family residences, including individual condominium units and manufactured homes classified as real estate. FHA insures mortgages to increase the availability of affordable home financing options for low- and moderate-income 1 U.S. Dept of Housing and Urban Development, Fiscal Year 2022–2026 Strategic Plan (2022), available at https://www.hud.gov/sites/dfiles/CFO/ documents/FY2022-2026HUDStrategicPlan.pdf. 2 12 U.S.C. 1707 et seq. VerDate Sep<11>2014 16:48 Oct 03, 2022 Jkt 259001 borrowers by protecting mortgagees and lenders against the risk of default. The Title II program provides limits on the maximum loan amounts but does not contain limitations on a minimum loan amount. Additionally, FHA’s regulation at 24 CFR 203.18d prohibits lenders from establishing a minimum principal loan amount under FHA’s Title II program. The House of Representatives Committee Report, 116–452, accompanying the U.S. Departments of Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill, 2021 3 directed HUD to submit a review of its FHA single-family mortgage insurance policies, practices, and products to identify any barriers or impediments to supporting, facilitating, and making available mortgage insurance for mortgages having an original principal obligation of $70,000 or less. In response, HUD is issuing a report concurrently with this RFI that outlines FHA’s role in the small mortgage lending market and identifies certain potential impediments to small mortgage lending. II. Purpose of this Request for Information The purpose of this RFI is to solicit information regarding barriers to originating small mortgage lending in the FHA program and obtain feedback on ways to improve FHA policies and programs that support affordable homeownership opportunities in underserved markets with lower housing prices. III. Specific Information Requested While FHA welcomes all comments relevant to expanding small mortgage lending in the FHA mortgage insurance program, FHA is particularly interested in receiving input from interested parties on the questions outlined below. 1. Communities have reported a lack of available financing for small balance mortgage loans in some areas. Have you observed this to be true and is there a particular mortgage loan amount below which the problem is most acute? 2. What housing supply market conditions and purchasing characteristics affect the availability of and demand for small mortgages? 3. What information can you provide regarding the ways in which the FHA program serves or does not serve borrowers seeking small mortgages? 4. What barriers (e.g., origination and servicing costs, compensation, 3 Available at https://www.congress.gov/ congressional-report/116th-congress/house-report/ 452. PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 60187 disincentives) exist for mortgage lenders and other industry participants in facilitating transactions that include the origination or servicing of small mortgages in the FHA program? 5. What technology solutions could improve the availability of small mortgages in the FHA program? 6. What changes to policies, regulations, features, or processes of the current FHA program would encourage mortgagees to do more lending for small mortgages in the FHA program? 7. What policies, regulations, features, or processes outside of FHA/HUD impact the availability of small mortgages in the FHA program? 8. What, if any, state and local requirements affect the availability of small mortgages in the FHA program? 9. What consumer protections are unique to small mortgages that should be considered in the FHA program? 10. What issues should be considered relating to provision of liquidity for small mortgage lending through securitization? 11. Offer any additional comments on the role that FHA programs could play in improving the supply of small mortgages. Julia R. Gordon, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. 2022–21047 Filed 10–3–22; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6325–N–01] Notice of Regulatory Waiver Requests Granted for the First Quarter of Calendar Year 2022 AGENCY: Office of the General Counsel, HUD. ACTION: Notice. Section 106 of the Department of Housing and Urban Development Reform Act of 1989 (the HUD Reform Act) requires HUD to publish quarterly Federal Register notices of all regulatory waivers that HUD has approved. Each notice covers the quarterly period since the previous Federal Register notice. The purpose of this notice is to comply with the requirements of section 106 of the HUD Reform Act. This notice contains a list of regulatory waivers granted by HUD during the period beginning on January 1, 2022 and ending on March 31, 2022. FOR FURTHER INFORMATION CONTACT: For general information about this notice, contact Aaron Santa Anna, Associate SUMMARY: E:\FR\FM\04OCN1.SGM 04OCN1

Agencies

[Federal Register Volume 87, Number 191 (Tuesday, October 4, 2022)]
[Notices]
[Pages 60186-60187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21047]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6342-N-01]


Request for Information Regarding Small Mortgage Lending

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Department of Housing and Urban Development, HUD.

ACTION: Request for information.

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

SUMMARY: In its 2022-2026 Strategic Plan, the Department established 
strategic goals to ``Support Underserved Communities'' and to ``Promote 
Homeownership.'' Among the goal of supporting underserved communities 
is to advance housing justice and proactively strengthen and protect 
vulnerable and underserved communities. Through this Request for 
Information (RFI), the Federal Housing Administration (FHA) seeks 
public input regarding barriers to the origination of small mortgages 
in the FHA program. Information provided in response to this RFI will 
allow FHA to identify barriers to the origination of small mortgages in 
the FHA program and consider the development of policies and programs 
that better support and expand affordable homeownership opportunities 
in underserved markets with lower housing prices.

DATES: Comments are requested on or before December 5, 2022. Late-filed 
comments will be considered to the extent practicable.

ADDRESSES: Interested persons are invited to submit comments responsive 
to this RFI. All submissions must refer to the docket number and title 
of the RFI. Commenters are encouraged to identify the number of the 
specific question or questions to which they are responding. Responses 
should include the name(s) of the person(s) or organization(s) filing 
the comment; however, because any responses received by HUD will be 
publicly available, responses should not include any personally 
identifiable information or confidential commercial information.
    There are two methods for submitting public comments.
    1. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
https://www.regulations.gov.
    2. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500.
    HUD strongly encourages commenters to submit their feedback and 
recommendations electronically. Electronic submission of comments 
allows the commenter maximum time to prepare and submit a response, 
ensures timely receipt by HUD, and enables HUD to make comments 
immediately available to the public. Comments submitted electronically 
through the https://www.regulations.gov website can be viewed by other 
commenters and interested members of the public. Commenters should 
follow the instructions provided on that site to submit comments 
electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
notice.

    Public Inspection of Public Comments. All comments and 
communications properly submitted to HUD will be available for public 
inspection and copying between 8 a.m. and 5 p.m. weekdays at the above 
address. Due to security measures at the HUD Headquarters building, an 
advance appointment to review the public comments must be scheduled by 
calling the Regulations Division at (202) 708-3055 (this is not a toll-
free number). Individuals can dial 7-1-1 to access the 
Telecommunications Relay Service (TRS), which permits users to make 
text-based calls, including Text Telephone (TTY) and Speech to Speech 
(STS) calls. Copies of all comments submitted are available for 
inspection and downloading at https://www.regulations.gov.

[[Page 60187]]


FOR FURTHER INFORMATION CONTACT: Kevin Stevens, Acting Director, Office 
of Single Family Program Development, Department of Housing and Urban 
Development, 451 7th Street SW, Room 9266, Washington, DC 20410-0500; 
telephone number 202-402-4317 (this is not a toll-free number). 
Individuals can dial 7-1-1 to access the Telecommunications Relay 
Service (TRS), which permits users to make text-based calls, including 
Text Telephone (TTY) and Speech to Speech (STS) calls.

SUPPLEMENTARY INFORMATION:

I. Background

    HUD's 2022-2026 Strategic Plan,\1\ released in March 2022, 
established strategic goals to ``Support Underserved Communities'' and 
to ``Promote Homeownership.'' Among the objectives of supporting 
underserved communities is to ``Advance Housing Justice,'' which 
includes expanding the Department's role in proactively strengthening 
and protecting vulnerable and underserved communities. Borrowers often 
experience difficulty finding affordable options to finance the 
purchase or refinance of properties below certain price thresholds, 
especially in areas where home values are low. FHA's mission is to 
provide mortgage financing options for low- to moderate-income 
borrowers who are not well served by the private mortgage market, 
including those seeking small mortgage. HUD understands that a primary 
barrier to small mortgage lending is the costs to originate and service 
small mortgages in relation to the limited potential compensation 
afforded by these loans. Therefore, lenders do not find it economically 
feasible to originate mortgages with low principal balances. This lack 
of financing availability for mortgages with low principal balances 
creates a significant barrier to affordable homeownership for 
underserved households, particularly in certain geographic areas.
---------------------------------------------------------------------------

    \1\ U.S. Dept of Housing and Urban Development, Fiscal Year 
2022-2026 Strategic Plan (2022), available at https://www.hud.gov/sites/dfiles/CFO/documents/FY2022-2026HUDStrategicPlan.pdf.
---------------------------------------------------------------------------

    Under Title II of the National Housing Act (NHA),\2\ FHA insures 
loans made by FHA-approved mortgagees for the purchase or refinance of 
1-4 family residences, including individual condominium units and 
manufactured homes classified as real estate. FHA insures mortgages to 
increase the availability of affordable home financing options for low- 
and moderate-income borrowers by protecting mortgagees and lenders 
against the risk of default.
---------------------------------------------------------------------------

    \2\ 12 U.S.C. 1707 et seq.
---------------------------------------------------------------------------

    The Title II program provides limits on the maximum loan amounts 
but does not contain limitations on a minimum loan amount. 
Additionally, FHA's regulation at 24 CFR 203.18d prohibits lenders from 
establishing a minimum principal loan amount under FHA's Title II 
program.
    The House of Representatives Committee Report, 116-452, 
accompanying the U.S. Departments of Transportation, Housing and Urban 
Development, and Related Agencies Appropriations Bill, 2021 \3\ 
directed HUD to submit a review of its FHA single-family mortgage 
insurance policies, practices, and products to identify any barriers or 
impediments to supporting, facilitating, and making available mortgage 
insurance for mortgages having an original principal obligation of 
$70,000 or less. In response, HUD is issuing a report concurrently with 
this RFI that outlines FHA's role in the small mortgage lending market 
and identifies certain potential impediments to small mortgage lending.
---------------------------------------------------------------------------

    \3\ Available at https://www.congress.gov/congressional-report/116th-congress/house-report/452.
---------------------------------------------------------------------------

II. Purpose of this Request for Information

    The purpose of this RFI is to solicit information regarding 
barriers to originating small mortgage lending in the FHA program and 
obtain feedback on ways to improve FHA policies and programs that 
support affordable homeownership opportunities in underserved markets 
with lower housing prices.

III. Specific Information Requested

    While FHA welcomes all comments relevant to expanding small 
mortgage lending in the FHA mortgage insurance program, FHA is 
particularly interested in receiving input from interested parties on 
the questions outlined below.
    1. Communities have reported a lack of available financing for 
small balance mortgage loans in some areas. Have you observed this to 
be true and is there a particular mortgage loan amount below which the 
problem is most acute?
    2. What housing supply market conditions and purchasing 
characteristics affect the availability of and demand for small 
mortgages?
    3. What information can you provide regarding the ways in which the 
FHA program serves or does not serve borrowers seeking small mortgages?
    4. What barriers (e.g., origination and servicing costs, 
compensation, disincentives) exist for mortgage lenders and other 
industry participants in facilitating transactions that include the 
origination or servicing of small mortgages in the FHA program?
    5. What technology solutions could improve the availability of 
small mortgages in the FHA program?
    6. What changes to policies, regulations, features, or processes of 
the current FHA program would encourage mortgagees to do more lending 
for small mortgages in the FHA program?
    7. What policies, regulations, features, or processes outside of 
FHA/HUD impact the availability of small mortgages in the FHA program?
    8. What, if any, state and local requirements affect the 
availability of small mortgages in the FHA program?
    9. What consumer protections are unique to small mortgages that 
should be considered in the FHA program?
    10. What issues should be considered relating to provision of 
liquidity for small mortgage lending through securitization?
    11. Offer any additional comments on the role that FHA programs 
could play in improving the supply of small mortgages.

Julia R. Gordon,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2022-21047 Filed 10-3-22; 8:45 am]
BILLING CODE 4210-67-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.