[Federal Register Volume 61, Number 139 (Thursday, July 18, 1996)]
[Notices]
[Pages 37440-37442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18192]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Request for Comments on Information Collection Package
AGENCY: Rural Housing Service, USDA.
ACTION: Proposed collection; comments request.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, Public
Law 104-13, this Notice announces the Rural Housing Service's (RHS's)
intent to request approval of an Information Collection package in
support of the direct Single Family Housing (SFH) programs of the
Agency.
DATES: Comments must be received no later than close of business
September 16, 1996. Comments received after such date will not be
considered; therefore, the commentor should allow sufficient mailing
and delivery time. RHS encourages the submission of comments within 30
days.
FOR FURTHER INFORMATION CONTACT: For inquiries on the Information
Collection Package, contact Barbara Williams, Information Collection
Coordinator, RHS at (202) 720-9734. For program content, contact David
J. Villano, Special Assistant to the Administrator, RHS at (202) 720-
1628. Comments should be submitted to Ms. Williams at USDA--RHS, 1400
Independence Avenue, SW, Ag Stop 0743, Washington, D.C. 20250-0743.
SUPPLEMENTARY INFORMATION:
Title: Direct Single Family Housing Handbooks Supporting 7 CFR Part
3550.
Type of Request: New information collection.
Abstract: On April 8, 1996, the RHS published a Proposed Rule in
the Federal Register reengineering and reinventing the direct Section
502 and 504 Single Family Housing (SFH) programs (61 FR 15395). That
action proposed the consolidation of 16 separate regulations guiding
the direct SFH programs into one streamlined rule. RHS proposed a
significant 90 percent reduction in CFR coverage. To accomplish this
objective, in part, we removed administrative guidance from the 16
regulations and proposed to provide same in Handbooks which would not
be published in the Federal Register. In our Proposed Rule, we stated
we would publish a Notice in the Federal Register on or about July 1,
[[Page 37441]]
1996, providing a 60-day comment period on the information collection
requirements of the Handbooks. This Notice accomplishes that proposal.
Section 501 of Title V of the Housing Act of 1949, as amended,
authorizes the Secretary of Agriculture to administer such programs and
to prescribe regulations to ensure that these loans and grants made
with Federal Funds are made to eligible applicants for authorized
purposes, and that subsequent servicing and benefits provided to
borrowers are consistent with the authorizing statute.
RHS offers a supervised credit program to extend financial
assistance to construct, improve, alter, repair, replace or
rehabilitate dwellings, which will provide modest, decent, safe, and
sanitary housing to eligible individuals living in rural areas. To
assist individuals in obtaining affordable housing, a borrower's house
payment may be subsidized to an interest rate as low as 1% and under
the deferred mortgage program the subsidy can be reduced further. The
amount of subsidy is based on the borrower's household income. The
information requested by RHS is vital to be able to process
applications for RHS assistance and make prudent credit and program
decisions. It includes borrower financial information such as household
income, assets and liabilities and monthly expenses. Without this
information the Agency is unable to determine if a borrower would
qualify for any services or if assistance has been granted that the
borrower may not have been eligible for. In addition, proper
liquidation and debt settlement decisions are made.
Another integral part of Agency lending requires borrowers to
refinance to other credit when they are able to do so. If a borrower is
unable to find other credit available at reasonable rates and terms,
the Agency will continue to review the borrower for possible
refinancing at periodic intervals. If it is determined that all loan
servicing efforts have failed to produce a successful outcome the
account will be liquidated through voluntary liquidation or
foreclosure. The Agency may also accept a deed in lieu of foreclosure
if it is in the best interest of the Government. The Agency may also
settle debts through charge-off, compromise or adjustment.
The RHS has over 725,000 direct Sections 502 and 504 loans with
approximately 625,000 customers in its portfolio. With our Fiscal Year
(FY) 1996 direct sections 502 and 504 loan appropriation, the Agency
anticipates making 35,000 new direct SFH loans this year. The
accounting system established by RHS's predecessor Agency, the Farmers
Home Administration (FmHA) to maintain its vast farm, housing,
community and business loan programs is severely outdated and not
capable of expansion to keep pace with an ever increasingly automated
society. FmHA was not able to provide the same level of customer
service provided by commercial lenders such as the escrow of real
estate taxes and insurance for its customers and toll free telephone
numbers to contact a servicing representative. These features are
critical for RHS to provide prudent supervised credit to its very-low
and low income customers and assist these families in becoming
successful homeowners.
In May 1995, the RHS awarded a contract to Fiserv, Inc. and its
subsidiary, Data-Link systems for the purchase of a commercial-off-the-
shelf Dedicated Loan Origination and Servicing System (DLOS) which
includes escrow capability. This system will replace the Agency's
current Program Loan Accounting System (PLAS) and the Management
Records System (MRS) and will provide agency personnel with the tools
to deliver high quality customer services to its customers. RHS intends
to adopt processes and techniques currently utilized by the private
sector including centralized servicing and automation of many forms and
processes. The system is being customized to provide the additional
features and servicing benefits available to RHS customers to assist
them in becoming successful homeowners. The Agency intends to begin
implementing this system on October 1, 1996 with two pilot states.
Other states will be phased into the DLOS system through FY 1996 with
full implementation anticipated by September 30, 1997.
The centralized servicing unit will be located in St. Louis,
Missouri, and will assume primary responsibility for the functions
associated with servicing and managing the loan portfolio such as
collection of loan payments, day to day loan servicing, escrowing, and
accounting in a focused effort to monitor and reduce loan defaults
thereby achieving our goal of having successful homeowners that can
eventually refinance to commercial credit. The centralized unit will be
staffed with many existing RHS employees.
RHS has been aggressively analyzing all existing burden imposed
upon the public to obtain and retain SFH program assistance. A Task
Force of RHS and Rural Development employees at the local, state and
national level was established and worked with the DLOS team to
eliminate all unnecessary burden. This significant effort included
input from the private sector manufacturers of the DLOS system. The
system which RHS has already purchased includes many industry standard
forms. Wherever possible, RHS intends to utilize these industry
standard forms, eliminate duplicative FmHA forms and make full use of
our new expanded automation capabilities. For example, most forms which
a current RHS borrower must complete can be system generated and
contain all relevant system information such as the borrower's account
number, address, property description, real estate taxes, insurance,
income data, etc., thereby reducing unnecessary burden imposed on our
customers. This will reduce the time it takes the public to complete
required information, reduce the need to stock forms throughout Rural
Development offices, and result in cost savings to the public. RHS has
reduced the burden in many of its existing information collection
dockets.
While many information collection dockets have been decreased,
through thorough analysis and consolidation of existing regulations,
and the narrower scope in which the Paperwork Burden Act of 1995
defines an information collection ``burden,'' many new areas of burden
have surfaced which now appear in this proposed package. RHS has made
every effort to analyze and reduce such burden to the maximum extent
possible.
The information is collected from applicants, borrowers,
application packagers, contractors, real estate brokers, employers,
etc. In brief, all applicants and borrowers and any person with any
type of a pecuniary interest in that of an applicant or recipient of a
direct SFH loan or grant. The information is collected by RHS and Rural
Development staff. RHS provides forms and guidelines to assist in the
collection and submission of this information.
The information collected is used by the Agency to verify program
eligibility requirements; continued eligibility requirements for
borrower assistance; servicing of loans; eligibility for special
servicing assistance such as: payment subsidies, moratorium (stop) on
payments, delinquency workout agreements; liquidation of loans, and
debt settlement. The information is also used to ensure that the direct
SFH programs are administered in a manner consistent with legislative
and administrative requirements. The information is typically submitted
via hand delivery or the U.S. Postal Service
[[Page 37442]]
to the RHS or Rural Development office. Occasionally, information is
submitted directly to RHS or Rural Development offices.
Public burden for the direct SFH programs is currently approved in
several information collection dockets. These existing information
collection dockets will be handled as follows:
7 CFR Part 1910, Subpart A--Receiving and Processing
Applications. The direct SFH programs have no burden included in the
existing approved information collection docket (0575-0134).
7 CFR Part 1944, Subpart A--Section 502 Rural Housing Loan
Policies, Procedures, and Authorizations. The existing approved
information collection docket (0575-0059) will be deleted at the final
rule stage for Part 3550. The burden under this existing regulation is
included in this proposed information collection docket.
7 CFR Part 1944, Subpart J--Section 504 Rural Housing
Loans and Grants. The existing approved information collection docket
(0575-0062) will be deleted at the final rule stage for 7 CFR Part
3550. The burden under this existing regulation is included in this
proposed information collection docket.
7 CFR Part 1951, Subpart C--Offsets of Federal Payments to
FmHA Borrowers. RHS will make a technical correction to the existing
approved information collection docket (0575-0119) at the final rule
stage of Part 3550 to remove the public burden for the direct Section
502 and 504 loan and grant programs. The burden for the direct SFH
programs in this existing regulation is included in this proposed
information collection docket.
7 CFR Part 1951, Subpart F--Analyzing Credit Needs and
Graduation of Borrowers. RHS will make a technical correction to the
existing approved information collection docket (0575-0093) at the
final rule stage of Part 3550 to remove the public burden for the
direct Section 502 and 504 loan and grant programs. The burden under
this existing regulation for the direct SFH programs is included in
this proposed information collection docket.
7 CFR Part 1951, Subpart G--Borrower Supervision,
Servicing and Collection of Single Family Housing Loan Accounts. The
existing approved information collection docket (0575-0060) will be
deleted at the final rule stage for 7 CFR Part 3550. The burden under
this existing regulation is included in this proposed information
collection docket.
7 CFR Part 1951, Subpart M--Servicing Cases Where
Unauthorized Loan or Other Financial Assistance Was Received--Single
Family Housing. The existing approved information collection docket
(0575-0105) will be deleted at the Final Rule stage for 7 CFR Part
3550. The burden under this existing regulation is included in this
proposed information collection docket.
7 CFR Part 1955, Subpart A--Liquidation of Loans Secured
by Real Estate and Acquisition of Real and Chattel Property. RHS will
make a technical correction to the existing approved information
collection docket (0575-0109) at the final rule stage to delete the
public burden for the direct Section 502 and 504 loan and grant
programs. The burden under this existing regulation for the direct SFH
programs is included in this proposed information collection docket.
7 CFR Part 1955, Subpart B--Management of Property. RHS
will make a technical correction to the existing approved information
collection docket (0575-0110) at the final rule stage to delete the
public burden for the direct Section 502 and 504 loan and grant
programs. The burden under this existing regulation is included in this
proposed information collection docket.
7 CFR Part 1956, Subpart B--Debt Settlement--Farmer
Programs and Housing. RHS will make a technical correction to the
existing approved information collection docket (0575-0118) at the
final rule stage to delete the public burden for the direct Section 502
and 504 loan and grant programs and transfer this regulation and
information collection docket to the Farm Service Agency (FSA). The
burden under this existing regulation for the direct SFH programs is
included in this proposed information collection docket.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to range from 5 minutes to 1.5 hours per
response.
Respondents: Applicants seeking financial assistance through RHS to
purchase adequate housing in rural America, borrowers who have received
such assistance and any person with a pecuniary interest in an
applicant or borrower.
Estimated Number of Respondents: 750,000.
Estimated Number of Responses per Respondent: 3.3.
Estimated Total Annual Burden on Respondents: 839,763.
A complete copy of the Information Collection Package and DRAFT
Handbooks is available from Barbara Williams, Information Collection
Coordinator, RHS at the aforementioned address.
Comments
Comments are invited on: (a) 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; (b) the accuracy of the Agency's estimate of the burden of the
proposed collection of information including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility and clarity of the information to be collected; and (d) ways to
minimize the burden of the collection of information on those who are
to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology.
Comments must be received on or before September 16, 1996, to be
assured of consideration. Comments received after such date will not be
considered, therefore; the commentor must allow for sufficient mailing
and delivery time. RHS encourages the submission of comments within 30
days. All responses to this notice will be summarized, included in the
request for OMB approval, and will become a matter of public record.
Comments should be submitted to Barbara Williams, Information
Collection Coordinator, RHS, Regulations and Paperwork Management
Division, U.S. Department of Agriculture, Ag. Stop 0743, Washington, DC
20250-0743. A comment to RHS is best assured of having its full effect
if RHS receives it within 30 days of publication of this notice.
Dated: July 12, 1996.
Maureen Kennedy,
Administrator, Rural Housing Service.
[FR Doc. 96-18192 Filed 7-17-96; 8:45 am]
BILLING CODE 3410-07-P