[Federal Register Volume 63, Number 39 (Friday, February 27, 1998)]
[Notices]
[Page 10031]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4868]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4322-N-01]


Statement of Policy on Disclosure of Mortgage Loan Sales 
Information

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of FOIA Mortgage Loan Sales Policy.

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SUMMARY: This notice sets forth the policy of the Department of Housing 
and Urban Development regarding information that will be provided when 
responding to Freedom of Information Act requests for information on 
the Department's Mortgage Loan Sales Program. This notice sets forth 
that policy and its rationale.

EFFECTIVE DATE: February 27, 1998.

FOR FURTHER INFORMATION CONTACT: Irwin P. Raij, Assistant Managing 
Attorney, FOIA Division, Room 10250, Department of Housing and Urban 
Development, 451 Seventh Street SW, Washington DC 20410; telephone 
(202) 708-3866 (this is not a toll-free number). Speech or hearing 
impaired individuals may access this number via TTY by calling the 
toll-free Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: The purposes of the Department of Housing 
and Urban Development's mortgage loan sales program are to (1) reduce 
losses to the Federal Housing Administration (FHA) fund and provide the 
greatest return to U.S. taxpayers; (2) reduce the inventory of 
Department-held mortgages; (3) improve mortgage loan servicing and 
rental services for residents of projects by returning the mortgage 
loans secured by these mortgages to the private sector; and (4) improve 
the servicing of the Department's insured mortgages to minimize losses 
to the FHA fund. (See, also, the mortgage sales notices published by 
HUD in the Federal Register on July 14, 1995 (60 FR 36336); July 24, 
1996 (61 FR 38467); November 15, 1996 (61 FR 58585); and July 7, 1997 
(62 FR 86298, July 7, 1997.))
    This notice sets forth the Department's policy pertaining to the 
release of records regarding those bids that the Department or its 
contractors have received to date under its mortgage loan sale program. 
When requested to provide records pursuant to the Freedom of 
Information Act (FOIA), the Department will produce relevant records in 
its files including, where available: (1) All potential bidders 
receiving bid materials; (2) all successful bidders and their 
successful bids and the mortgage loans attributable to such bids; (3) 
all unsuccessful bidders and their unsuccessful bids and the mortgage 
loans attributable to such bids; (4) the aggregate proceeds the 
Department received from the sale; and (5) the aggregate number of 
bidders.
    Members of the public submitting FOIA requests pursuant to this 
notice should be advised that many of the original relevant records 
pertaining to HUD's Mortgage Loan Sales Program were compiled by 
contractors, and were not in the custody of, or subject to the control 
of HUD. Therefore, HUD's files may not contain complete records 
pertaining to mortgage loan sales.
    A significant period of time has elapsed between the Department's 
last mortgage sale and the present. Thus, release of these records does 
not have material adverse consequences upon the economic interests of 
the participants of those mortgage sales. Moreover, this policy strikes 
a balance among the Department's policy of disclosing as much 
information as possible to the public within the spirit of the FOIA and 
harm to the U.S. taxpayer by restricting the Department's ability to 
meet its policy objectives, as stated above, and the mandates of 
section 203(k) of the Housing and Community Development Amendments of 
1978, as amended. See 12 U.S.C. 1701z-11.

    Dated: February 20, 1998.
Nicolas Retsinas,
Assistant Secretary for Housing Federal Housing Commissioner.
[FR Doc. 98-4868 Filed 2-26-98; 8:45 am]
BILLING CODE 4210-27-P