[Federal Register Volume 64, Number 127 (Friday, July 2, 1999)]
[Notices]
[Pages 35986-35987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16845]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Request for Extension of an Approved Information 
Collection

AGENCY: Rural Housing Service, USDA.

ACTION: Proposed collection; Comments requested.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this 
notice announces the Rural Housing Service's intention to request an 
extension for a currently approved information collection in support of 
the program for 7 CFR part 3550, Direct Single Family Housing Loans and 
Grants and its accompanying Handbooks.

DATES: Comments on this notice must be received by August 31, 1999 to 
be assured of consideration.

FOR FURTHER INFORMATION CONTACT: David J. Villano, Deputy 
Administrator, Single Family Housing, Rural Housing Service, 1400 
Independence Avenue, SW, Mail Stop 0780, Washington, D.C. 20250-0780, 
telephone number (202) 720-5177.

SUPPLEMENTARY INFORMATION:
    Title: Direct Single Family Housing Loans and Grants.
    OMB Numbers: 0575-0166 and 0575-0172 (the Agency seeks to 
consolidate both packages into one information collection package).
    Expiration Date of Approval: August 31, 1999.
    Type of Request: Extension of a currently approved information 
collection.
    Abstract: The Rural Housing Service (RHS), through its direct 
single family housing loan and grant programs, provides financial 
assistance to construct, improve, alter, repair, replace or 
rehabilitate dwellings, which will provide modest, decent, safe and 
sanitary housing to eligible individuals in rural areas. To assist a 
customer, they must provide the Agency with a standard housing 
application (used by government and private lenders), and provide 
documentation to support same. Documentation includes verification of 
income, financial information on assets and liabilities, etc. The 
information requested is comparable to that required by any private 
mortgage lender. To assist individuals in obtaining affordable housing, 
a borrower's house payment may be subsidized to an interest rate as low 
as 1%. The amount of subsidy is based upon the customer's household 
income. After receipt of this information, if the customer obtains a 
loan from RHS, they must update income information on an annual basis 
to renew the payment subsidy. The aforementioned information required 
by RHS is vital to be able to process applications for RHS assistance 
and make prudent loan underwriting and program decisions. It includes 
borrower financial information such as household income, assets and 
liabilities and monthly expenses. Without this information, the Agency 
is unable to determine if a customer would qualify for any services or 
if assistance has been granted to which the customer would not be 
eligible under current regulations and statutes. The Agency also 
encourages its customers to leverage our mortgage financing with that 
of other lenders to assist as many customers as possible within our 
limited resources. In many cases, another lender will leverage and 
participate with RHS in assisting the customer. In these cases, RHS and 
the other lender share documentation, with the customer's consent, to 
reduce duplication. Through our work with participating lenders, the 
Agency keeps abreast of information required by other lenders to ensure 
that RHS is not requiring unnecessary information. The Agency 
continually strives to ensure that information collection burden is 
kept to a minimum.
    As mentioned, these loans are made directly by the Agency. RHS also 
services these loans for their term (33 or 38 years) and provides tools 
to assist the customer in becoming a successful homeowner. As 
discussed, payment subsidies are renewed on an annual basis. In 
addition, the Agency provides

[[Page 35987]]

credit counseling and other services to its customers in an effort to 
assist them in becoming successful. The Agency offers many servicing 
tools including a moratorium (stop) on payments, modifications to 
payments subsidies to reflect changes in the customer's income, loan 
reamortization, payment workouts, etc. To obtain this assistance, the 
Agency must require certain information such as updated income and 
financial information, etc., to ensure the customer qualifies for the 
assistance, and is provided with the correct benefits based upon their 
circumstances.
    Direct single family housing loans are only provided to customers 
who cannot obtain other credit for their housing needs. Customers are 
required by statute to refinance with another lender when they are 
financially able. To ensure the Agency meets its statutory 
responsibilities, existing customers may be requested to submit update 
income and financial information for the Agency to make a determination 
as to whether they can ``graduate'' to other credit. In addition, 
should a customer default on a loan which results in liquidation, the 
Agency needs updated income and financial information to settle any 
outstanding indebtedness.
    The subject regulations and accompanying handbooks were completely 
reinvented and reengineered in 1996. Significant reductions in 
information collection requirements were made at that time. Since 
program funding has increased for these programs since that time and 
the Agency leverages loans with other lenders, meaning that more 
customers are affected by these information collection requirements, 
the Agency does not propose a reduction in burden.
    Estimate of Burden: Public burden for this collection of 
information is estimated to range from 5 minutes to 3 hours per 
response.
    Respondents: Applicants seeking direct single family housing loans 
and grants from the Agency and approximately 600,000 existing customers 
who have active loans and grants under the Section 502 and 504 
programs.
    Estimated Number of Respondents: 823,370.
    Estimated Number of Responses per Respondent: 4.
    Estimated Total Annual Burden on Respondents: 1,052,129 hours.
    Copies of this information collection can be obtained from Tracy 
Gillin, Regulations and Paperwork Management Branch, at (202) 692-0039.

Comments

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Agency, including whether the information will have practical 
utility; (b) the accuracy of the Agency's estimate of the burden of the 
proposed collection of information including the validity of the 
methodology and assumptions used; (c) ways to enhance the quality, 
utility and clarity of the information to be collected; and d) ways to 
minimize the burden of the collection of information on those who are 
to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology. Comments may be sent to Tracy 
Gillin, Regulations and Paperwork Management Branch, US Department of 
Agriculture, Rural Development, STOP 0742, 1400 Independence Ave. SW, 
Washington, DC 20250. All responses to this notice will be summarized 
and included in the request for OMB approval. All comments will also 
become a matter of public record.

    Dated: June 24, 1999.
Eileen M. Fitzgerald,
Acting Administrator, Rural Housing Service.
[FR Doc. 99-16845 Filed 7-1-99; 8:45 am]
BILLING CODE 3410-XV-U