[Federal Register Volume 61, Number 156 (Monday, August 12, 1996)]
[Rules and Regulations]
[Pages 41944-41945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20169]



[[Page 41943]]


_______________________________________________________________________

Part VII





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 350



_______________________________________________________________________



Office of the Assistant Secretary for Housing--Federal Housing 
Commission; Amendments to Regulation X, the Real Estate Settlement 
Procedures Act: Withdrawal of Employer-Employee and Computer Loan 
Origination Systems (CLOs) Exemptions; Correction and Technical 
Revision; Final Rule and Submission for OMB Review; Comment Request; 
Notice

  Federal Register / Vol. 61, No. 156 / Monday, August 12, 1996 / Rules 
and Regulations  
=======================================================================
-----------------------------------------------------------------------

[[Page 41944]]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 3500

[Docket No. FR-3638-F-04]
RIN 2502-AG26


Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner; Amendments to Regulation X, the Real Estate Settlement 
Procedures Act: Withdrawal of Employer-Employee and Computer Loan 
Origination Systems (CLOs) Exemptions; Correction and Technical 
Revision

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Correction and revision of final rule.

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

SUMMARY: This document amends a final rule that was published on June 
7, 1996 (61 FR 29238) by correcting the preamble and revising Appendix 
D, Controlled Business Arrangement Disclosure Statement Format. The 
rule primarily affects the requirements applicable to controlled 
business arrangements and computer loan origination systems in the 
Department's regulations implementing the Real Estate Settlement 
Procedures Act. The correction in this document and two notices 
published elsewhere in today's Federal Register relate to the Paperwork 
Reduction Act Statement that appears in the rule. The revision of 
Appendix D reorganizes the disclosure format for better clarity.

EFFECTIVE DATE: October 7, 1996.

FOR FURTHER INFORMATION CONTACT: David Williamson, Director, Office of 
Consumer and Regulatory Affairs, Room 5241, telephone (202) 708-4560, 
or for legal questions about the appendix, Richard Bennett, Attorney, 
Office of General Counsel, Room 9262, telephone (202) 708-3137. (The 
telephone numbers are not toll-free.) For hearing- and speech-impaired 
persons, these numbers may be accessed via TTY (text telephone) by 
calling the Federal Information Relay Service at 1-800-877-8339. The 
address for the above-listed persons is: Department of Housing and 
Urban Development, 451 Seventh Street, SW, Washington, DC 20410.

SUPPLEMENTARY INFORMATION:

Background

    In the preamble of the rule published on June 7, 1996 (61 FR 29238) 
(June 7 rule), the Department stated an incorrect OMB control number 
for the information collection requirements regarding controlled 
business arrangements (see 24 CFR 3500.15). The correction in this 
document, and two notices published elsewhere in today's Federal 
Register, relate to the Paperwork Reduction Act Statement that appears 
in the rule.
    In addition, Appendix D (Controlled Business Arrangement Disclosure 
Statement Format) in the rule contained instructions to the preparer 
that could create confusion. Therefore, HUD is making technical 
revisions to the format and instructions, to make it more clear how the 
format is to be completed.

Correction and Technical Revision

    Accordingly, FR Doc. 96-14329, Amendments to Regulation X, the Real 
Estate Settlement Procedures Act: Withdrawal of Employer-Employee and 
Computer Loan Origination Systems (CLOs) Exemptions, published on June 
7, 1996 (61 FR 29238), is corrected and amended as follows:
    (1) In the preamble on page 29238, in the second column, under the 
heading ``Paperwork Reduction Act Statement'', by correctly revising 
the first paragraph to read as follows:
    The information collection requirements contained in Sec. 3500.15 
of this rule have been submitted to the Office of Management and Budget 
(OMB) for review in accordance with the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520). Additional information on this submission can be 
found in two notices published on August 12, 1996. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection displays a valid 
control number.
    (2) On page 29254, Appendix D to Part 3500 is correctly revised to 
read as follows:

Appendix D to Part 3500

Controlled Business Arrangement Disclosure Statement Format; Notice

To:--------------------------------------------------------------------

From:------------------------------------------------------------------
(Entity Making Statement)

Property:--------------------------------------------------------------

Date:------------------------------------------------------------------

    This is to give you notice that [referring party] has a business 
relationship with [settlement services provider(s) . [Describe the 
nature of the relationship between the referring party and the 
provider(s), including percentage of ownership interest, if 
applicable.] Because of this relationship, this referral may provide 
[referring party] a financial or other benefit.
    [A.] Set forth below is the estimated charge or range of charges 
for the settlement services listed. You are NOT required to use the 
listed provider(s) as a condition for [settlement of your loan on] [or] 
[purchase, sale, or refinance of] the subject property. THERE ARE 
FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR 
SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE 
RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

------------------------------------------------------------------------
      Provider and settlement service        Charge or range of charges 
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
------------------------------------------------------------------------

    [B.] Set forth below is the estimated charge or range of charges 
for the settlement services of an attorney, credit reporting agency, or 
real estate appraiser that we, as your lender, will require you to use, 
as a condition of your loan on this property, to represent our 
interests in the transaction.

------------------------------------------------------------------------
      Provider and settlement service        Charge or range of charges 
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
------------------------------------------------------------------------

Acknowledgment
    I/we have read this disclosure form, and understand that [referring 
party] is referring me/us to purchase the above-described settlement 
service(s) and may receive a financial or other benefit as the result 
of this referral.

----------------------------------------------------------------------
Signature

[INSTRUCTIONS TO PREPARER:] [Use paragraph A for referrals other than 
those by a lender to an attorney, a credit reporting agency, or a real 
estate appraiser that a lender is requiring a borrower to use to 
represent the lender's interests in the transaction. Use paragraph B 
for those referrals to an attorney, credit reporting agency, or real 
estate appraiser that a lender is requiring a borrower to use to 
represent the lender's interests in the transaction. When applicable, 
use both paragraphs. Specific timing rules for delivery of the 
controlled business disclosure statement are set forth in 24 CFR 
3500.15(b)(1) of Regulation X. These INSTRUCTIONS

[[Page 41945]]

TO PREPARER should not appear on the statement.]

    Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C. 3535(d).

    Dated: August 1, 1996.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 96-20169 Filed 8-9-96; 8:45 am]
BILLING CODE 4210-27-P