[Federal Register Volume 62, Number 102 (Wednesday, May 28, 1997)]
[Notices]
[Pages 28890-28891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13944]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4245-D-02]


Office of the President of the Government National Mortgage 
Association; Redelegation of Authority To Execute Legal Instruments 
Pertaining to Section 312 Rehabilitation Loans

AGENCY: Office of the President of the Government National Mortgage 
Association, HUD.

ACTION: Notice of redelegation of authority.

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SUMMARY: In this notice, the President of the Government National 
Mortgage Association (Ginnie Mae) individually redelegates to the 
Executive Vice President, the Vice President of Finance, the Director 
of Asset Management, and each Ginnie Mae Asset Management Specialist 
authority to execute legal instruments, including those enumerated 
below, pertaining to Section 312 loans.

EFFECTIVE DATE: May 19, 1997.

FOR FURTHER INFORMATION CONTACT: J. Nicholas Shelley, Ginnie Mae Office 
of Policy, Planning and Risk Management, Room 6206, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410, (202) 708-2772. (This is not a toll-free number.) For hearing/
speech-impaired individuals, this number may be accessed via TTY by 
calling the Federal Information Relay Service at 1-800-877-8399.

SUPPLEMENTARY INFORMATION: Since the Section 312 Rehabilitation Loan 
program was terminated by Section 289 of the National Affordable 
Housing Act of 1990 (42 U.S.C. 12839), no Section 312 loans are now 
being made. However, Section 312 loan collection functions must 
continue, and 12 U.S.C 1701g-5c transferred the assets and liabilities 
of the Section 312 revolving loan fund to the Department's revolving 
fund for liquidating programs. Although the Assistant Secretary for 
Community Planning and Development (CPD) has historically administered 
the Section 312 program, most loan management and collection functions 
of CPD have been contracted out over the years under various 
contractual arrangements. Under these arrangements, contractor staff 
may prepare legal instruments to be executed by HUD officials in 
connection with the servicing and collection of Section 312 loans.
    Pursuant to Section 306(e) of the National Housing Act, 12 U.S.C. 
1721(e), Ginnie Mae has authority to service the Section 312 loan 
portfolio. In order to expedite property foreclosures and judgments 
against the Section 312 borrowers in default and to take other actions 
associated with the servicing of Section 312 loans, the Assistant 
Secretary for CPD and the President of Ginnie Mae have agreed that one 
or more Ginnie Mae employees should be authorized to sign legal 
instruments with respect to servicing and collection of Section 312 
loans.
    In a new delegation of authority being published concurrently 
herewith, the Secretary of Housing and Urban Development has delegated 
to the President of Ginnie Mae the authority to

[[Page 28891]]

execute legal instruments pertaining to Section 312 loans. In this 
document, the President of Ginnie Mae individually redelegates the 
authority to execute such legal instruments to the Executive Vice 
President, the Vice President of Finance, the Director of Asset 
Management and each Ginnie Mae Asset Management Specialist. In a 
Revocation of Authority being published concurrently herewith, the 
Assistant Secretary for CPD is revoking authority previously delegated 
to certain CPD officials to execute legal instruments pertaining to 
Section 312 loans.
    Accordingly, the President of Ginnie Mae redelegates authority as 
follows:

Section A. Authority Delegated

    The Executive Vice President, the Vice President of Finance, the 
Director of Asset Management and each Ginnie Mae Asset Management 
Specialist is individually redelegated the authority to execute in the 
name of the Secretary written instruments relating to Section 312 
Rehabilitation Loans, including but not limited to: Deeds of release, 
quit claim deeds and deeds of reconveyance; substitutions of trustees; 
compromises; write-offs; close outs; releases related to insurance 
policies; assignments or satisfactions of notes, mortgages deeds of 
trust and other security instruments; and any other written instrument 
or document related to, or necessary for, servicing or collection of a 
Section 312 loan, including any such instrument related to Section 312 
loan servicing-related property management and disposition functions 
that have not been delegated to the Assistant Secretary for Housing.

Section B. Authority to Further Redelegate

    This authority may not be further relegated.

    Authority: Sec. 312 of the Housing Act of 1964, 42 U.S.C. 1452b; 
12 U.S.C. 1701g-5c; and section C, Delegation of Authority, 48 FR 
49384, October 25, 1983; Section 7(d), Department of Housing and 
Urban Development Act, 42 U.S.C., Section 3535(d).

    Dated: May 19, 1997.
Kevin G. Chavers,
President, Government National Mortgage Association.
[FR Doc. 97-13944 Filed 5-27-97; 8:45 am]
BILLING CODE 4210-01-M