Notice2024-03716
30-Day Notice of Proposed Information Collection: Quality Control Requirements for Direct Endorsement Lenders; OMB Control No.: 2502-0600
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 23, 2024
Issuing agencies
Housing and Urban Development Department
Abstract
HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice is to allow for an additional 30 days of public comment.
Full Text
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<title>Federal Register, Volume 89 Issue 37 (Friday, February 23, 2024)</title>
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[Federal Register Volume 89, Number 37 (Friday, February 23, 2024)]
[Notices]
[Pages 13735-13736]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-03716]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-7080-N-11]
30-Day Notice of Proposed Information Collection: Quality Control
Requirements for Direct Endorsement Lenders; OMB Control No.: 2502-0600
AGENCY: Office of Policy Development and Research, Chief Data Officer,
HUD.
ACTION: Notice.
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SUMMARY: HUD is seeking approval from the Office of Management and
Budget (OMB) for the information collection described below. In
accordance with the Paperwork Reduction Act, HUD is requesting comment
from all interested parties on the proposed collection of information.
The purpose of this notice is to allow for an additional 30 days of
public comment.
DATES: Comments Due Date: March 25, 2024.
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 <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function. Interested
persons are also invited to submit comments regarding this proposal and
comments should refer to the proposal by name and/or OMB Control Number
and should be sent to: Colette Pollard, Clearance Officer, REE,
Department of Housing and Urban Development, 451 7th Street SW, Room
8210, Washington, DC 20410-5000; email
<a href="/cdn-cgi/l/email-protection#f6a6978693848199849da493928395829f9998b79582b990909f9593b69e8392d8919980"><span class="__cf_email__" data-cfemail="481829382d3a3f273a231a2d2c3d2b3c212726092b3c072e2e212b2d08203d2c662f273e">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management
Officer, REE, Department of Housing and Urban Development, 451 7th
Street SW, Washington, DC 20410; email Colette Pollard at
<a href="/cdn-cgi/l/email-protection#a4e7cbc8c1d0d0c18af4cbc8c8c5d6c0e4ccd1c08ac3cbd2"><span class="__cf_email__" data-cfemail="ce8da1a2abbabaabe09ea1a2a2afbcaa8ea6bbaae0a9a1b8">[email protected]</span></a>, telephone (202) 402-3400. This is not a toll-
free number. HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech or communication disabilities. To learn more about how to
make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>. 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.
The Federal Register notice that solicited public comment on the
information collection for a period of 60 days was published on July
27, 2023 at 88 FR 48491.
A. Overview of Information Collection
Title of Information Collection: Quality Control Requirements for
Direct Endorsement Lenders.
OMB Approval Number: 2502-0600.
Type of Request: Extension of currently approved collection.
Form Number: Not Applicable.
Description of the need for the information and proposed use: Per
24 CFR 202.8(a)(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
[[Page 13736]]
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, per HUD Handbook
4000.1, Sections V.A.2.d. iv (A) and V.A.2.d.iv (B). The obligation to
self-report these findings creates an additional information collection
burden on DE lenders.
Respondents: Active Title II Direct Endorsement Lenders.
Estimated Number of Respondents: 3,187.
Estimated Number of Responses: 67,710.
Frequency of Response: Annually.
Average Hours per Response: .25.
Total Estimated Burden Hours: 16,927.50.
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Burden Annual Hourly cost
Information collection Number of Frequency Responses hours per burden per Annual cost
respondents of response per annum response hours response
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Quality control of Early Payment Defaults (EPDs).......... 1,463 26 38,038 .25 9,509.50 $53.22 $506,095.59
Quality control of loan originations...................... 1,463 16 23,408 .25 5,852 53.22 311,443.44
Quality control through lender self-reports............... 261 24 6,264 .25 1,566 53.22 83,342.52
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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 Policy Development and
Research, Chief Data Officer.
[FR Doc. 2024-03716 Filed 2-22-24; 8:45 am]
BILLING CODE 4210-67-P
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