Federal Register, Volume 62 Issue 112 (Wednesday, June 11, 1997)

[Federal Register Volume 62, Number 112 (Wednesday, June 11, 1997)]
[Notices]
[Pages 31982-32011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15301]



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Part VI





Department of Housing and Urban Development





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Real Estate Settlement Procedures Act; Revision of Special Information 
Booklet; Notice

Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4243-N-01]


Real Estate Settlement Procedures Act; Notice of Revision of 
Special Information Booklet

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

ACTION: Notice; revision of special information booklet.

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SUMMARY: This notice announces the availability of a revised special 
information booklet as required by the Real Estate Settlement 
Procedures Act of 1974 (RESPA) (12 U.S.C. 2601-17) and prescribed by 
the Assistant Secretary for Housing--Federal Housing Commissioner.

ADDRESSES: The special information booklet that follows this notice is 
also available by sending a request to the Director, Office of Consumer 
and Regulatory Affairs, Attention: RESPA/Special Information Booklet, 
Room 9146, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410.

FOR FURTHER INFORMATION CONTACT: David R. Williamson, Office of 
Consumer and Regulatory Affairs, (202) 708-4560, Room 9146, Department 
of Housing and Urban Development, 451 Seventh Street, SW., Washington, 
DC 20410. (This is not a toll-free number.) Persons with hearing or 
speech impairments may access this number via TTY by calling the 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: On April 23, 1987, the Department issued the 
current edition of the special information booklet (52 FR 13566). That 
version provided a description of the nature and purpose of the costs 
relating to a real estate settlement, and an explanation of the HUD-1 
Settlement Statement, escrow accounts used in connection with the loan, 
providers of real estate settlement services, and unfair practices and 
unreasonable or unnecessary charges. The Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601-17) (RESPA) requires lenders to 
provide the special information booklet to each person borrowing money 
to finance the purchase of residential real estate within 3 business 
days after receiving the application.
    Since 1987, RESPA has been amended on several occasions. (Cranston-
Gonzalez National Affordable Housing Act, 1990, Public Law 101-625; the 
Dire Emergency Supplemental Appropriations Act, 1991, Public Law 102-
27; the Housing and Community Development Act of 1992, Public Law 102-
550; the Riegle Community Development and Regulatory Improvement Act of 
1994, Public Law 103-325; the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996, Public Law 104-208.) Consequently, certain parts 
of the special information booklet are outdated. Pursuant to 12 U.S.C. 
2603, and 24 CFR 3500.6(b) of the Department's RESPA regulations, the 
Assistant Secretary for Housing--Federal Housing Commissioner has 
revised the special information booklet by addressing the legislative 
amendments, and by updating informational references and the booklet's 
discussion of the HUD-1 Settlement Statement. The revised booklet is 
published in today's Federal Register following this notice.
    More specifically, the Assistant Secretary for Housing--Federal 
Housing Commissioner has revised the booklet to reflect changes in 
RESPA coverage as well as additional required disclosures relating to 
loan servicing transfers, escrow accounts, and affiliated service 
providers. The explanation of settlement services has been expanded to 
include current lending and settlement charges, such as fees for 
mortgage brokers, Computer Loan Origination (CLO) services, tax 
service, flood insurance, and lead based paint inspection services. The 
booklet was also updated to include other statutes related to fair 
credit, fair lending, flood insurance and lead based paint hazards 
which affect the lending and settlement process.
    The Department will make a copy of the special information booklet 
available to any firm planning to publish the booklet for distribution 
to lenders. Firms interested in securing a copy should send their 
requests to the Director, Office of Consumer and Regulatory Affairs, 
Attention: RESPA/Special Information Booklet, Room 9146, U.S. 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410. The booklet will also be available through the 
Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402. The Department does not have a sufficient supply 
of the booklet and form to provide copies to all settlement service 
providers. Lenders may use the booklet as soon as it becomes available 
through normal sources. Previous editions may be used until supplies 
are exhausted or until September 9, 1997 whichever is earlier.
    The Department is also making the booklet available to settlement 
service providers and consumers at the following web site address: 
http://www.hud.gov/fha/res/respa_hm.html

Paperwork Reduction Act

    The information collection requirements for the special information 
booklet have been approved by the Office of Management and Budget (OMB) 
in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2502-0265. 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.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(1) of the Department's 
regulations, published in a final rule on September 27, 1996 (61 FR 
50914), this notice and the special information booklet do not direct, 
provide for assistance or loan and mortgage insurance for, or otherwise 
govern or regulate property acquisition, disposition, lease, 
rehabilitation, alteration, demolition, or new construction, or set out 
or provide for standards for construction or construction materials, 
manufactured housing, or occupancy. Therefore, this notice and the 
special information booklet are categorically excluded from the 
requirements of the National Environmental Policy Act.
    The Department is hereby publishing the revised special information 
booklet to provide appropriate notice of its contents. The text of the 
special information booklet for the Real Estate Settlement Procedures 
Act follows this notice.

    Dated: June 2, 1997.
Nicolas P. Retsinas,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 97-15301 Filed 6-10-97; 8:45 am]
BILLING CODE 4210-27-C

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[FR Doc. 97-15301 Filed 6-10-97; 8:45 am]
BILLING CODE 4210-27-C