Loan Guaranty: Servicer Regulation Changes, 25142-25144 [2024-07113]
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25142
Federal Register / Vol. 89, No. 70 / Wednesday, April 10, 2024 / Rules and Regulations
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
1. The authority citation for part 165
continues to read as follows:
■
[FR Doc. 2024–07571 Filed 4–9–24; 8:45 am]
Authority: 46 U.S.C. 70034, 70051, 70124;
33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;
Department of Homeland Security Delegation
No. 00170.1, Revision No. 01.3.
2. Add § 165.T08–0250 to read as
follows:
■
ddrumheller on DSK120RN23PROD with RULES1
(a) Regulated Area. The following
areas are temporary safety zones:
(1) Moving Safety Zone: All waters
within a 100-yard radius of the M/V
HAPPY DIAMOND, as the vessel
transits from the approximate
coordinates 29°19′01.21″ N,
094°38′38.1″ W, off the coast of
Galveston, and proceeds through the
Houston Ship Channel to the assigned
docking stations.
(2) Fixed Safety Zone: All waters
within a 25-yard radius of the M/V
HAPPY DIAMOND, while moored, at
the Bayport Terminal in Seabrook,
Texas, will be in effect for the event’s
duration.
(b) Definition. The term ‘‘designated
representative’’ means Coast Guard
Patrol Commanders, including Coast
Guard coxswains, petty officers, and
other officers operating Coast Guard
vessels, and Federal, state, and local
officers designated by or assisting the
COTP Houston-Galveston in the
enforcement of the regulated areas.
(c) Regulations. (1) All persons and
vessels are prohibited from entering,
transiting through, anchoring in, or
remaining within the regulated area
unless authorized by the COTP or the
COTP’s designated representative.
(2) Designated representatives may
control vessel traffic throughout the
enforcement area as determined by the
prevailing conditions.
(3) Persons and vessels may request
authorization to enter, transit through,
anchor in, or remain within the
regulated areas by contacting the COTP
by telephone at 866–539–8114, or the
COTP’s designated representative via
VHF radio on channel 16. If
authorization is granted by the COTP or
the COTP’s designated representative,
all persons and vessels receiving such
authorization must comply with the
instructions of the COTP or the COTP’s
designated representative.
(d) Enforcement Period. This rule will
be subject to enforcement from 5 a.m. on
April 4, 2024, through 4 p.m. on April
17, 2024.
16:36 Apr 09, 2024
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BILLING CODE 9110–04–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 36
§ 165.T08–0250 Fixed and Moving Safety
Zone; Around the M/V HAPPY DIAMOND,
Houston Ship Channel and Seabrook, TX.
VerDate Sep<11>2014
Dated: April 3, 2024.
Keith M. Donohue,
Captain, U.S. Coast Guard, Captain of the
Port Sector Houston-Galveston.
RIN 2900–AR97
Loan Guaranty: Servicer Regulation
Changes
Department of Veterans Affairs.
Final rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA) is renaming and clarifying
certain loss-mitigation terms used in
VA’s regulations. VA is making these
changes to align the names and
definitions with their general use in the
housing finance industry. VA believes
that these revisions will help avoid
confusion and enable servicers and
veterans to address loan defaults more
quickly and effectively.
DATES: This rule is effective May 10,
2024.
FOR FURTHER INFORMATION CONTACT:
Andrew Trevayne, Assistant Director for
Loan and Property Management, and
Stephanie Li, Assistant Director for
Regulations, Legislation, Engagement,
and Training, Loan Guaranty Service
(26), Veterans Benefits Administration,
Department of Veterans Affairs, 810
Vermont Avenue NW, Washington, DC
20420, (202) 632–8862. (This is not a
toll-free telephone number.)
SUPPLEMENTARY INFORMATION: On July
20, 2023, VA published a proposed rule
in the Federal Register (88 FR 46720) to
rename and clarify certain lossmitigation terms used in VA’s
regulations to better align such name
and terms with their general use in the
housing finance industry. The public
comment period for the proposed rule
closed on September 18, 2023. VA is
adopting as final the proposed
regulatory changes with the grammatical
edit as noted below.
VA received one comment that did
not address the subject of the
rulemaking but instead requested VA
ban realtors from transactions involving
veterans or their survivors. VA finds
this comment to be outside the scope of
this rulemaking and, therefore, will
make no changes to the regulatory text
based on this comment.
In the proposed rule, VA discussed
that the Agency would remove the
SUMMARY:
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references to ‘‘written’’ and ‘‘executed’’
in regard to a repayment plan and a
special forbearance agreement and
replace them with a requirement for the
repayment plan or special forbearance
agreement be documented 88 FR 46720,
46721. However, VA inadvertently kept
the term ‘‘executed’’ in the proposed
amendment to the definition of ‘‘special
forbearance.’’ Therefore, VA is
correcting the error in this final rule by
replacing the current rule’s phrase, ‘‘a
written agreement executed’’ with ‘‘a
documented agreement,’’ as proposed,
and removing the term ‘‘executed.’’ The
corrected definition of special
forbearance reads in this final rule, ‘‘a
documented agreement by and between
the holder and the borrower.’’ The
deletion is grammatical only, not
substantive, and reflects VA’s intent as
explained in the proposal.
The purpose of this paragraph is to
clarify the Agency’s intent with respect
to the severability of the provisions of
this final rule. Each provision that the
Agency has amended is capable of
operating independently, and the
Agency intends them to be severable. If
any provision of this rule is determined
by judicial review or operation of law to
be invalid, the Agency would not intend
that partial invalidation to render the
remainder of this rule invalid. Likewise,
if the application of any portion of this
final rule to a particular circumstance
were determined to be invalid, the
agencies would intend that the rule
remain applicable to all other
circumstances.
Executive Orders 12866, 13563, and
14094
Executive Order 12866 (Regulatory
Planning and Review) directs agencies
to assess the costs and benefits of
available regulatory alternatives and,
when regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, and other advantages;
distributive impacts; and equity).
Executive Order 13563 (Improving
Regulation and Regulatory Review)
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. Executive Order
14094 (Executive Order on Modernizing
Regulatory Review) supplements and
reaffirms the principles, structures, and
definitions governing contemporary
regulatory review established in
Executive Order 12866 of September 30,
1993 (Regulatory Planning and Review),
and Executive Order 13563 of January
18, 2011 (Improving Regulation and
Regulatory Review). The Office of
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ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 70 / Wednesday, April 10, 2024 / Rules and Regulations
Information and Regulatory Affairs has
determined that this rulemaking is not
a significant regulatory action under
Executive Order 12866, as amended by
Executive Order 14094. The Regulatory
Impact Analysis associated with this
rulemaking can be found as a
supporting document at
www.regulations.gov.
participating small servicers. After the
first year of implementation, there will
be a monetary benefit realized by
servicers due to the reduction in burden
this rulemaking will accomplish.
Therefore, pursuant to 5 U.S.C. 605(b),
the initial and final regulatory flexibility
analysis requirements of 5 U.S.C. 603
and 604 do not apply.
Regulatory Flexibility Act
The Secretary hereby certifies that
this final rule will not have a significant
economic impact on a substantial
number of small entities as they are
defined in the Regulatory Flexibility Act
(5 U.S.C. 601–612). However, this
rulemaking will have a direct impact on
a number of industries that service VA
loans. VA defines a servicer as a
mortgage company that collects funds
for a debt incurred by a borrower to
purchase a home. When a loan becomes
delinquent after a borrower misses one
or more mortgage payments, servicers
are responsible for servicing delinquent
loans and working with the borrower to
reach an agreement that will bring the
loan current or avoid foreclosure
whenever feasible.
A recent analysis indicated there are
currently 450 servicers in varying
industries that will be impacted by this
rulemaking. This final rule will impose
a one-time rule familiarization cost to
servicers in 2024, estimated at $55.91
per servicer regardless of size. The
$55.91 cost is derived by dividing the
cost of rule familiarization, which is
estimated to be $25,157, by the 450
servicers VA currently works with. To
estimate the one-time rule
familiarization cost, VA multiplies the
number of servicers by the time needed
for in-house or retained legal counsel to
review and ensure compliance with the
rule and their compensation rate. VA
assumes that it would take 30 minutes
for a lawyer to review the rulemaking.
The compensation rate of the lawyers is
estimated by multiplying their hourly
wage rate ($78.74) by the fringe benefits
factor, 1.42. Multiplying the number of
servicers (450) by the time to review the
rule (30 minutes) and their total
compensation rate ($111.81 per hour)
results in a one-time total cost of
$25,157 in Fiscal Year (FY) 2024. This
one-time cost in FY 2024 is offset by the
long-term cost savings of this
rulemaking from reduced agreement
preparation and sharing efforts.
VA considers a rulemaking to have a
‘‘significant economic impact’’ when the
impact associated with the rulemaking
for a small entity equals or exceeds 1
percent of annual revenue. Thus, this
rulemaking is not expected to have a
significant economic impact on the
Unfunded Mandates
VerDate Sep<11>2014
16:36 Apr 09, 2024
Jkt 262001
The Unfunded Mandates Reform Act
of 1995 requires, at 2 U.S.C. 1532, that
agencies prepare an assessment of
anticipated costs and benefits before
issuing any rule that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
(adjusted annually for inflation) in any
one year. This final rule will have no
such effect on State, local, and tribal
governments, or on the private sector.
Paperwork Reduction Act
Although this final rule contains
provisions constituting collections of
information under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501–3521), there are no
provisions associated with this
rulemaking constituting any new
collection of information or any
revisions to the existing collection of
information. The collections of
information for 38 CFR 36.4317,
36.4319, and 36.4320 are currently
approved by Office of Management and
Budget (OMB) and have been assigned
OMB control number 2900–0021.
Congressional Review Act
Pursuant to Subtitle E of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (known as the
Congressional Review Act) (5 U.S.C. 801
et seq.), the Office of Information and
Regulatory Affairs designated this rule
as not satisfying the criteria under 5
U.S.C. 804(2).
List of Subjects in 38 CFR Part 36
Condominiums, Housing, Indians,
Individuals with disabilities, Loan
programs—housing and community
development, Loan programs—Indians,
Loan programs—veterans, Manufactured
homes, Mortgage insurance, Reporting
and recordkeeping requirements,
Veterans.
Signing Authority
Denis McDonough, Secretary of
Veterans Affairs, approved and signed
this document on March 28, 2024, and
authorized the undersigned to sign and
submit the document to the Office of the
Federal Register for publication
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25143
electronically as an official document of
the Department of Veterans Affairs.
Luvenia Potts,
Regulation Development Coordinator, Office
of Regulation Policy & Management, Office
of General Counsel, Department of Veterans
Affairs.
For the reasons stated in the
preamble, the Department of Veterans
Affairs amends 38 CFR part 36 as set
forth below:
PART 36—LOAN GUARANTY
Subpart B—Guaranty or Insurance of
Loans to Veterans With Electronic
Reporting
1. The authority citation for part 36,
subpart B continues to read as follows:
■
Authority: 38 U.S.C. 501 and 3720.
2. Amend § 36.4301 by:
a. Removing the definition of
‘‘Compromise sale’’;
■ b. Revising the third sentence of
‘‘Liquidation sale’’;
■ c. Revising the definition of
‘‘Repayment plan’’;
■ d. Adding, in alphabetical order, the
definition for ‘‘Short sale’’; and
■ e. Revising the definition of ‘‘Special
forbearance’’.
The revisions and addition read as
follows:
■
■
§ 36.4301
Definitions.
*
*
*
*
*
Liquidation sale. * * * This term also
includes a short sale.
*
*
*
*
*
Repayment plan. This is a
documented agreement by and between
the borrower and the holder to reinstate
a loan that is 61 or more calendar days
delinquent, by requiring the borrower to
pay each month over a fixed period
(minimum of three months duration) the
normal monthly payments plus an
agreed upon portion of the delinquency
each month.
*
*
*
*
*
Short sale. A sale to a third party for
an amount less than is sufficient to
repay the unpaid balance on the loan
where the holder has agreed in advance
to release the lien in exchange for the
proceeds of such sale.
Special forbearance. This is a
documented agreement by and between
the holder and the borrower where the
holder agrees to suspend all payments
or accept reduced payments for one or
more months, on a loan 61 or more
calendar days delinquent, and the
borrower agrees to pay the total
delinquency at the end of the specified
period or enter into a repayment plan.
*
*
*
*
*
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§ 36.4315
Federal Register / Vol. 89, No. 70 / Wednesday, April 10, 2024 / Rules and Regulations
[Amended]
§ 36.4322
3. Amend § 36.4315(a) by removing
‘‘written’’ and adding in its place ‘‘a
documented’’.
■
§ 36.4316
[Amended]
Servicer reporting requirements.
*
*
*
*
*
(c) * * *
(30) Basic claim information—when
the servicer files a claim under
guaranty. The servicer shall report this
event within 365 calendar days of loan
termination for non-VA purchase
claims, and within 60 calendar days of
the approval date for VA purchase
claims.
(31) VA purchase settlement—when
VA purchases a loan and the servicer
reports the tax and insurance
information. The servicer shall report
this event within 60 calendar days of
the VA purchase approval date.
*
*
*
*
*
§ 36.4319
6. Amend § 36.4319 by:
■ a. Removing ‘‘special forbearance
agreements’’ and ‘‘compromise sales’’
and adding in their place ‘‘special
forbearances’’ and ‘‘short sales’’,
respectively, in paragraph (a);
■ b. Removing ‘‘Compromise Sale’’ and
adding in its place ‘‘Short Sale’’ in the
table in paragraph (b);
■ c. Removing ‘‘compromise sale’’ and
adding in its place ‘‘short sale’’ in
paragraph (c)(4).
■
§ 36.4320
[Amended]
7. Amend § 36.4320 by:
■ a. Removing ‘‘Refunding’’ and adding
in its place ‘‘VA purchase’’ in the
heading;
■ b. Removing ‘‘refund’’ and adding in
its place ‘‘purchase’’ in paragraph (c);
and
■ c. Removing ‘‘2900–0362’’ and adding
in its place ‘‘2900–0021’’ in the
parenthesis at the end of the section.
ddrumheller on DSK120RN23PROD with RULES1
■
VerDate Sep<11>2014
16:36 Apr 09, 2024
BILLING CODE 8320–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 81
Designation of Areas for Air Quality
Planning Purposes
CFR Correction
This rule is being published by the
Office of the Federal Register to correct
an editorial or technical error that
appeared in the most recent annual
revision of the Code of Federal
Regulations.
■ In title 40 of the Code of Federal
Regulations, Part 81, revised as of July
1, 2023, in § 81.350, in the table titled
‘‘Wisconsin—2010 Sulfur Dioxide
NAAQS [Primary]’’, the entry for
‘‘Outagamie County (part)’’ is removed.
[FR Doc. 2024–07673 Filed 4–9–24; 8:45 am]
BILLING CODE 0099–10–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
42 CFR Parts 411, 413, 488, and 489
[CMS–1779–F2]
[Amended]
Jkt 262001
RIN 0938–AV02
Medicare Program; Prospective
Payment System and Consolidated
Billing for Skilled Nursing Facilities;
Updates to the Quality Reporting
Program and Value-Based Purchasing
Program for Federal Fiscal Year 2024;
Corrections
Centers for Medicare &
Medicaid Services (CMS), Department
of Health and Human Services (HHS).
ACTION: Final rule; correction.
AGENCY:
This document corrects
technical errors in the final rule that
appeared in the August 7, 2023 Federal
Register, entitled ‘‘Medicare Program;
Prospective Payment System and
Consolidated Billing for Skilled Nursing
Facilities; Updates to the Quality
Reporting Program and Value-Based
Purchasing Program for Federal Fiscal
Year 2024’’. The effective date was
October 1, 2023.
SUMMARY:
PO 00000
Frm 00028
Fmt 4700
This correcting document is
effective April 10, 2024, and is
applicable beginning October 1, 2023.
FOR FURTHER INFORMATION CONTACT: John
Kane, (410) 786–0557, for information
related to the SNF PPS.
SUPPLEMENTARY INFORMATION:
DATES:
[FR Doc. 2024–07113 Filed 4–9–24; 8:45 am]
4. Amend § 36.4316 by:
■ a. Removing ‘‘documented’’ in
paragraphs (b)(2), (3), and (4); and
■ b. Removing ‘‘written’’ in paragraph
(b)(6).
■ 5. Amend § 36.4317 by:
■ a. Removing ‘‘agreement’’ in
paragraph (c)(18);
■ b. Removing ‘‘Compromise sale’’ and
‘‘compromise sale’’ and adding ‘‘Short
sale’’ and ‘‘short sale’’, respectively, in
paragraph (c)(21); and
■ c. Revising paragraphs (c)(30) and
(31).
The revisions read as follows:
■
§ 36.4317
[Amended]
8. Amend §§ 36.4322(e)(1), (1)(ii), (2),
and (f)(1)(iii) by removing ‘‘compromise
sale’’ each place it appears and adding
‘‘short sale’’ in its place.
■
Sfmt 4700
I. Background
In FR Doc. 2023–16249 of August 7,
2023 (88 FR 53200), there were
technical errors that are identified and
corrected in this correcting document.
These corrections are applicable as if
they had been included in the final rule
entitled ‘‘Medicare Program; Prospective
Payment System and Consolidated
Billing for Skilled Nursing Facilities;
Updates to the Quality Reporting
Program and Value-Based Purchasing
Program for Federal Fiscal Year 2024’’
(hereinafter referred to as the FY 2024
SNF PPS final rule), which was effective
October 1, 2023.
II. Summary of Errors
A. Summary of Errors in the Preamble
On page 53221 of the FY 2024 SNF
PPS final rule (88 FR 53200), we
discussed our proposal to add the
surgical option that allows a subset of
subcategory 42.2—codes for displaced
fractures to be eligible for one of two
orthopedic surgery categories.
Additionally, we stated that we would
add this surgical option to the
subcategory of M84.5—codes for
pathological fractures to certain weight
bearing bones to be eligible for one of
two orthopedic surgery categories. In
the final rule, we inadvertently stated
that this proposal applied to 45 of the
codes within the subcategory S42.2
codes and to 46 of the codes within the
subcategory M84.5 codes. However,
these numbers were inadvertently
swapped, meaning that the proposal
applied to 46 of the codes within the
subcategory S42.2 codes and to 45 of the
codes within the subcategory M84.5
codes. We are correcting these errors.
B. Summary and Corrections of Errors to
Tables Posted on the CMS Website for
the PDPM ICD–10 Mappings
We are correcting the following errors
to the FY 2024 Patient Driven Payment
Model (PDPM) ICD–10–CM mappings
(hereinafter referred to as PDPM ICD–10
code mappings) that were made
available on the CMS website at https://
www.cms.gov/medicare/medicare-feefor-service-payment/snfpps/pdpm in
conjunction with the release of the FY
2024 SNF PPS final rule, as corrected by
the correction notification that appeared
in the October 4, 2023 Federal Register,
entitled ‘‘Medicare Program; Prospective
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]]>Agencies
[Federal Register Volume 89, Number 70 (Wednesday, April 10, 2024)]
[Rules and Regulations]
[Pages 25142-25144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07113]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 36
RIN 2900-AR97
Loan Guaranty: Servicer Regulation Changes
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Veterans Affairs (VA) is renaming and
clarifying certain loss-mitigation terms used in VA's regulations. VA
is making these changes to align the names and definitions with their
general use in the housing finance industry. VA believes that these
revisions will help avoid confusion and enable servicers and veterans
to address loan defaults more quickly and effectively.
DATES: This rule is effective May 10, 2024.
FOR FURTHER INFORMATION CONTACT: Andrew Trevayne, Assistant Director
for Loan and Property Management, and Stephanie Li, Assistant Director
for Regulations, Legislation, Engagement, and Training, Loan Guaranty
Service (26), Veterans Benefits Administration, Department of Veterans
Affairs, 810 Vermont Avenue NW, Washington, DC 20420, (202) 632-8862.
(This is not a toll-free telephone number.)
SUPPLEMENTARY INFORMATION: On July 20, 2023, VA published a proposed
rule in the Federal Register (88 FR 46720) to rename and clarify
certain loss-mitigation terms used in VA's regulations to better align
such name and terms with their general use in the housing finance
industry. The public comment period for the proposed rule closed on
September 18, 2023. VA is adopting as final the proposed regulatory
changes with the grammatical edit as noted below.
VA received one comment that did not address the subject of the
rulemaking but instead requested VA ban realtors from transactions
involving veterans or their survivors. VA finds this comment to be
outside the scope of this rulemaking and, therefore, will make no
changes to the regulatory text based on this comment.
In the proposed rule, VA discussed that the Agency would remove the
references to ``written'' and ``executed'' in regard to a repayment
plan and a special forbearance agreement and replace them with a
requirement for the repayment plan or special forbearance agreement be
documented 88 FR 46720, 46721. However, VA inadvertently kept the term
``executed'' in the proposed amendment to the definition of ``special
forbearance.'' Therefore, VA is correcting the error in this final rule
by replacing the current rule's phrase, ``a written agreement
executed'' with ``a documented agreement,'' as proposed, and removing
the term ``executed.'' The corrected definition of special forbearance
reads in this final rule, ``a documented agreement by and between the
holder and the borrower.'' The deletion is grammatical only, not
substantive, and reflects VA's intent as explained in the proposal.
The purpose of this paragraph is to clarify the Agency's intent
with respect to the severability of the provisions of this final rule.
Each provision that the Agency has amended is capable of operating
independently, and the Agency intends them to be severable. If any
provision of this rule is determined by judicial review or operation of
law to be invalid, the Agency would not intend that partial
invalidation to render the remainder of this rule invalid. Likewise, if
the application of any portion of this final rule to a particular
circumstance were determined to be invalid, the agencies would intend
that the rule remain applicable to all other circumstances.
Executive Orders 12866, 13563, and 14094
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, and other advantages;
distributive impacts; and equity). Executive Order 13563 (Improving
Regulation and Regulatory Review) emphasizes the importance of
quantifying both costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility. Executive Order 14094 (Executive Order on
Modernizing Regulatory Review) supplements and reaffirms the
principles, structures, and definitions governing contemporary
regulatory review established in Executive Order 12866 of September 30,
1993 (Regulatory Planning and Review), and Executive Order 13563 of
January 18, 2011 (Improving Regulation and Regulatory Review). The
Office of
[[Page 25143]]
Information and Regulatory Affairs has determined that this rulemaking
is not a significant regulatory action under Executive Order 12866, as
amended by Executive Order 14094. The Regulatory Impact Analysis
associated with this rulemaking can be found as a supporting document
at www.regulations.gov.
Regulatory Flexibility Act
The Secretary hereby certifies that this final rule will not have a
significant economic impact on a substantial number of small entities
as they are defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612). However, this rulemaking will have a direct impact on a number of
industries that service VA loans. VA defines a servicer as a mortgage
company that collects funds for a debt incurred by a borrower to
purchase a home. When a loan becomes delinquent after a borrower misses
one or more mortgage payments, servicers are responsible for servicing
delinquent loans and working with the borrower to reach an agreement
that will bring the loan current or avoid foreclosure whenever
feasible.
A recent analysis indicated there are currently 450 servicers in
varying industries that will be impacted by this rulemaking. This final
rule will impose a one-time rule familiarization cost to servicers in
2024, estimated at $55.91 per servicer regardless of size. The $55.91
cost is derived by dividing the cost of rule familiarization, which is
estimated to be $25,157, by the 450 servicers VA currently works with.
To estimate the one-time rule familiarization cost, VA multiplies the
number of servicers by the time needed for in-house or retained legal
counsel to review and ensure compliance with the rule and their
compensation rate. VA assumes that it would take 30 minutes for a
lawyer to review the rulemaking. The compensation rate of the lawyers
is estimated by multiplying their hourly wage rate ($78.74) by the
fringe benefits factor, 1.42. Multiplying the number of servicers (450)
by the time to review the rule (30 minutes) and their total
compensation rate ($111.81 per hour) results in a one-time total cost
of $25,157 in Fiscal Year (FY) 2024. This one-time cost in FY 2024 is
offset by the long-term cost savings of this rulemaking from reduced
agreement preparation and sharing efforts.
VA considers a rulemaking to have a ``significant economic impact''
when the impact associated with the rulemaking for a small entity
equals or exceeds 1 percent of annual revenue. Thus, this rulemaking is
not expected to have a significant economic impact on the participating
small servicers. After the first year of implementation, there will be
a monetary benefit realized by servicers due to the reduction in burden
this rulemaking will accomplish. Therefore, pursuant to 5 U.S.C.
605(b), the initial and final regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604 do not apply.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. This final rule will have no such effect on
State, local, and tribal governments, or on the private sector.
Paperwork Reduction Act
Although this final rule contains provisions constituting
collections of information under the provisions of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3521), there are no provisions
associated with this rulemaking constituting any new collection of
information or any revisions to the existing collection of information.
The collections of information for 38 CFR 36.4317, 36.4319, and 36.4320
are currently approved by Office of Management and Budget (OMB) and
have been assigned OMB control number 2900-0021.
Congressional Review Act
Pursuant to Subtitle E of the Small Business Regulatory Enforcement
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C.
801 et seq.), the Office of Information and Regulatory Affairs
designated this rule as not satisfying the criteria under 5 U.S.C.
804(2).
List of Subjects in 38 CFR Part 36
Condominiums, Housing, Indians, Individuals with disabilities, Loan
programs--housing and community development, Loan programs--Indians,
Loan programs--veterans, Manufactured homes, Mortgage insurance,
Reporting and recordkeeping requirements, Veterans.
Signing Authority
Denis McDonough, Secretary of Veterans Affairs, approved and signed
this document on March 28, 2024, and authorized the undersigned to sign
and submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Luvenia Potts,
Regulation Development Coordinator, Office of Regulation Policy &
Management, Office of General Counsel, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs amends 38 CFR part 36 as set forth below:
PART 36--LOAN GUARANTY
Subpart B--Guaranty or Insurance of Loans to Veterans With
Electronic Reporting
0
1. The authority citation for part 36, subpart B continues to read as
follows:
Authority: 38 U.S.C. 501 and 3720.
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2. Amend Sec. 36.4301 by:
0
a. Removing the definition of ``Compromise sale'';
0
b. Revising the third sentence of ``Liquidation sale'';
0
c. Revising the definition of ``Repayment plan'';
0
d. Adding, in alphabetical order, the definition for ``Short sale'';
and
0
e. Revising the definition of ``Special forbearance''.
The revisions and addition read as follows:
Sec. 36.4301 Definitions.
* * * * *
Liquidation sale. * * * This term also includes a short sale.
* * * * *
Repayment plan. This is a documented agreement by and between the
borrower and the holder to reinstate a loan that is 61 or more calendar
days delinquent, by requiring the borrower to pay each month over a
fixed period (minimum of three months duration) the normal monthly
payments plus an agreed upon portion of the delinquency each month.
* * * * *
Short sale. A sale to a third party for an amount less than is
sufficient to repay the unpaid balance on the loan where the holder has
agreed in advance to release the lien in exchange for the proceeds of
such sale.
Special forbearance. This is a documented agreement by and between
the holder and the borrower where the holder agrees to suspend all
payments or accept reduced payments for one or more months, on a loan
61 or more calendar days delinquent, and the borrower agrees to pay the
total delinquency at the end of the specified period or enter into a
repayment plan.
* * * * *
[[Page 25144]]
Sec. 36.4315 [Amended]
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3. Amend Sec. 36.4315(a) by removing ``written'' and adding in its
place ``a documented''.
Sec. 36.4316 [Amended]
0
4. Amend Sec. 36.4316 by:
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a. Removing ``documented'' in paragraphs (b)(2), (3), and (4); and
0
b. Removing ``written'' in paragraph (b)(6).
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5. Amend Sec. 36.4317 by:
0
a. Removing ``agreement'' in paragraph (c)(18);
0
b. Removing ``Compromise sale'' and ``compromise sale'' and adding
``Short sale'' and ``short sale'', respectively, in paragraph (c)(21);
and
0
c. Revising paragraphs (c)(30) and (31).
The revisions read as follows:
Sec. 36.4317 Servicer reporting requirements.
* * * * *
(c) * * *
(30) Basic claim information--when the servicer files a claim under
guaranty. The servicer shall report this event within 365 calendar days
of loan termination for non-VA purchase claims, and within 60 calendar
days of the approval date for VA purchase claims.
(31) VA purchase settlement--when VA purchases a loan and the
servicer reports the tax and insurance information. The servicer shall
report this event within 60 calendar days of the VA purchase approval
date.
* * * * *
Sec. 36.4319 [Amended]
0
6. Amend Sec. 36.4319 by:
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a. Removing ``special forbearance agreements'' and ``compromise sales''
and adding in their place ``special forbearances'' and ``short sales'',
respectively, in paragraph (a);
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b. Removing ``Compromise Sale'' and adding in its place ``Short Sale''
in the table in paragraph (b);
0
c. Removing ``compromise sale'' and adding in its place ``short sale''
in paragraph (c)(4).
Sec. 36.4320 [Amended]
0
7. Amend Sec. 36.4320 by:
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a. Removing ``Refunding'' and adding in its place ``VA purchase'' in
the heading;
0
b. Removing ``refund'' and adding in its place ``purchase'' in
paragraph (c); and
0
c. Removing ``2900-0362'' and adding in its place ``2900-0021'' in the
parenthesis at the end of the section.
Sec. 36.4322 [Amended]
0
8. Amend Sec. Sec. 36.4322(e)(1), (1)(ii), (2), and (f)(1)(iii) by
removing ``compromise sale'' each place it appears and adding ``short
sale'' in its place.
[FR Doc. 2024-07113 Filed 4-9-24; 8:45 am]
BILLING CODE 8320-01-P
