[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regulations and proposed to provide same in Handbooks which would not 
be published in the Federal Register.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