[Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
[Notices]
[Pages 68357-68358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-34131]


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DEPARTMENT OF VETERANS AFFAIRS

[OMB Control No. 2900-0516]


Proposed Information Collection Activity: Proposed Collection; 
Comment Request

AGENCY: Veterans Benefits Administration, Department of Veterans 
Affairs.

ACTION: Notice.

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SUMMARY: The Veterans Benefits Administration (VBA), Department of 
Veterans Affairs, is announcing an

[[Page 68358]]

opportunity for public comment on the proposed collection of certain 
information by the agency. Under the Paperwork Reduction Act (PRA) of 
1995, Federal agencies are required to publish notice in the Federal 
Register concerning each proposed collection of information, including 
each proposed reinstatement of a previously approved collection for 
which approval has expired, and allow 60 days for public comment in 
response to the notice. This notice solicits comments on processing 
assumptions of VA guaranteed home loans.

DATES: Written comments and recommendations on the proposed collection 
of information should be received on or before March 2, 1998.

ADDRESSES: Submit written comments on the collection of information to 
Anne V. DeSena, Veterans Benefits Administration (264), Department of 
Veterans Affairs, 810 Vermont Avenue, NW, Washington, DC 20420. Please 
refer to ``OMB Control No. 2900-0516'' in any correspondence.

FOR FURTHER INFORMATION CONTACT: Anne V. DeSena at (202) 273-7375.

SUPPLEMENTARY INFORMATION: Under the PRA of 1995 (Public Law 104-13; 44 
U.S.C. 3501-3520), Federal agencies must obtain approval from the 
Office of Management and Budget (OMB) for each collection of 
information they conduct or sponsor. This request for comment is being 
made pursuant to Section 3506(c)(2)(A) of the PRA.
    With respect to the following collection of information, VBA 
invites comments on: (1) whether the proposed collection of information 
is necessary for the proper performance of VBA's functions, including 
whether the information will have practical utility; (2) the accuracy 
of VBA's estimate of the burden of the proposed collection of 
information; (3) ways to enhance the quality, utility, and clarity of 
the information to be collected; and (4) ways to minimize the burden of 
the collection of information on respondents, including through the use 
of automated collection techniques or the use of other forms of 
information technology.
    Title: Loan Guaranty: Processing Assumptions of VA Guaranteed Home 
Loans Under 38 U.S.C. 3714 (38 CFR 36.4209, 36.4232, 36.4252, 36.4275, 
36.4303, 36.4308, and 36.4312).
    OMB Control Number: 2900-0516.
    Type of Review: Reinstatement, without change, of a previously 
approved collection for which approval has expired.
    Abstract: As a result of Public Law 100-198, The Veterans' Home 
Loan Program Improvements and Property Rehabilitation Act of 1987, all 
VA guaranteed loans for which a commitment was issued on or after March 
1, 1988, certain holders (automatic lenders under 38 U.S.C. 3702(d)) 
are required to examine the creditworthiness of loan purchasers and, 
upon approval, to release obligors' liabilities to VA. Upon completion 
of this transfer, the holder or authorized agent is required to provide 
notice to VA regarding the status of the loan. If neither the holder 
nor its authorized agent is an automatic lender, this notice must 
include advice regarding the status of the loan, a copy of the purchase 
contract and a complete credit package developed by the holder for VA 
to use in conducting its own underwriting review of the proposed 
assumer. Without this notice regarding the loan purchaser the 
Government would be deprived of information regarding the status of 
loans for which it may be liable.
    Parties assuming VA guaranteed loans committed to on or after March 
l, 1988, must pay a fee of one-half of one percent of the loan balance 
to VA, through the loan holder, immediately following loan settlement. 
Title 38 U.S.C., 3714 additionally requires that loan holders must list 
the amount of this fee in every assumption statement provided and 
include a notice that the fee must be paid immediately following loan 
settlement. A similar funding fee of 1.25% of the loan balance is 
currently due from veterans on VA guaranteed loans. These moneys are 
deposited in VA Guaranty and Indemnity Fund for use by VA in the event 
the Department must pay on its liability for a guaranteed loan. Without 
collection of a similar fee of one-half of one percent of the loan 
balance from loan purchasers VA is failing to use every means available 
to reduce the need for special congressional appropriations and is 
collecting fees from veterans who are enjoying the benefits to which 
they are entitled while not collecting a similar fee from individuals 
assuming VA guaranteed loans.
    Holders are also required to provide warning clauses on all 
instruments evidencing a VA guaranteed loan committed to on or after 
March 1, 1988. alerting potential purchasers of the loan's restricted 
assumability. Without this language on loan documents the Government 
has no assurance that parties assuming VA guaranteed loans have record 
notice of this restricted assumability.
    Affected Public: Businesses or other for-profit--Individuals or 
households.
    Estimated Annual Burden: 31,625 hours.
    Estimated Average Burden Per Respondent: 5 hours 45 minutes.
    Frequency of Response: One-time.
    Estimated Number of Respondents: 5,500.

    Dated: December 2, 1997.

    By direction of the Secretary.
Donald L. Neilson,
Director, Information Management Service.
[FR Doc. 97-34131 Filed 12-30-97; 8:45 am]
BILLING CODE 8320-01-P