[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