[Federal Register Volume 66, Number 81 (Thursday, April 26, 2001)]
[Notices]
[Pages 20991-20992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10406]


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FEDERAL HOUSING FINANCE BOARD

[No. 2001-N-9]


Submission for OMB Review; Comment Request

AGENCY: Federal Housing Finance Board.

ACTION: Notice.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995, the Federal Housing Finance Board (Finance Board) hereby 
gives notice that it has submitted the information collection entitled 
``Monthly Survey of Rates and Terms on Conventional, 1-Family, Nonfarm 
Loans,'' commonly known as the Monthly Interest Rate Survey or MIRS, to 
the Office of Management and Budget (OMB) for review and approval of a 
three-year extension of the OMB control number, which is due to expire 
on April 30, 2001.

DATES: Interested persons may submit comments on or before May 29, 
2001.

ADDRESSES: Submit comments to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
the Federal Housing Finance Board, Washington, DC 20503. Address 
requests for copies of the information collection and supporting 
documentation to Elaine L. Baker, Secretary to the Board, 202/408-2837, 
[email protected], Federal Housing Finance Board, 1777 F Street, NW, 
Washington, DC 20006.

FOR FURTHER INFORMATION CONTACT: Timothy D. Forsberg, Financial 
Analyst, Market Research and Systems Analysis Division, Office of 
Policy, Research and Analysis, 202/408-2968, [email protected], 
Federal Housing Finance Board, 1777 F Street, NW., Washington, DC 
20006.

SUPPLEMENTARY INFORMATION:

A. Need For and Use of Information Collection

    The Finance Board's predecessor, the former Federal Home Loan Bank 
Board (FHLBB), first provided data concerning a survey of mortgage 
interest rates in 1963. No statutory or regulatory provision explicitly 
required the FHLBB to conduct the MIRS although references to the MIRS 
did appear in several federal and state statutes. Responsibility for 
conducting the MIRS was transferred to the Finance Board upon 
dissolution of the FHLBB in 1989. See Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (FIRREA), Pub. L. 101-73, tit. 
IV, sec. 402(e)(3)-4), 103 Stat. 183, codified at 12 U.S.C. 1437 note, 
and tit. VII, sec. 731(f)(1) and (f)(2)(B), 103 Stat. 433 (Aug. 9, 
1989). In 1993, the Finance Board promulgated a final rule describing 
the method by which it conducts the MIRS. See 58 FR 19195 (Apr. 13, 
1993), codified at 12 CFR 906.3. Since its inception, the MIRS has 
provided the only consistent source of information on mortgage interest 
rates

[[Page 20992]]

and terms and house prices for areas smaller than the entire country.
    Statutory references to the MIRS include the following:
     Pursuant to their respective organic statutes, Fannie Mae 
and Freddie Mac use the MIRS results as the basis for the annual 
adjustments to the maximum dollar limits for their purchase of 
conventional mortgages. See 12 U.S.C. 1454(a)(2) and 1717(b)(2). The 
Fannie Mae and Freddie Mac limits were first tied to the MIRS by the 
Housing and Community Development Act of 1980. See Pub. L. 96-399, tit. 
III, sec. 313(a)-(b), 94 Stat. 1644-1645 (Oct. 8, 1980). At that time, 
the nearly identical statutes required Fannie Mae and Freddie Mac to 
base the dollar limit adjustments on ``the national average one-family 
house price in the monthly survey of all major lenders conducted by the 
[FHLBB].'' See 12 U.S.C. 1454(a)(2) and 1717(b)(2) (1989). When 
Congress abolished the FHLBB in 1989, it replaced the reference to the 
FHLBB in the Fannie Mae and Freddie Mac statutes with a reference to 
the Finance Board. See FIRREA, tit. VII, sec. 731(f)(1) and (f)(2)(B), 
103 Stat. 433.
     Also in 1989, Congress required the Chairperson of the 
Finance Board to take necessary actions to ensure that indices used to 
calculate the interest rate on adjustable rate mortgages (ARMs) remain 
available. See FIRREA, tit. IV, sec. 402(e)(3)-(4), 103 Stat. 183, 
codified at 12 U.S.C. 1437 note. At least one ARM index, known as the 
National Average Contract Mortgage Rate for the Purchase of Previously 
Occupied Homes by Combined Lenders, is derived from the MIRS data. The 
statute permits the Finance Board to substitute a substantially similar 
ARM index after notice and comment only if the new ARM index is based 
upon data substantially similar to that of the original ARM index and 
substitution of the new ARM index will result in an interest rate 
substantially similar to the rate in effect at the time the new ARM 
index replaces the existing ARM index. See 12 U.S.C. 1437 note.
     Congress indirectly connected the high cost area limits 
for mortgages insured by the Federal Housing Administration (FHA) of 
the Department of Housing and Urban Development to the MIRS in 1994 
when it statutorily linked these FHA insurance limits to the purchase 
price limitations for Fannie Mae. See Pub. L. 103-327, 108 Stat. 2314 
(Sept. 28, 1994), codified at 12 U.S.C. 1709(b)(2)(A)(ii).
     The Internal Revenue Service uses the MIRS data in 
establishing ``safe-harbor'' limitations for mortgages purchased with 
the proceeds of mortgage revenue bond issues. See 26 CFR 6a.103A-
2(f)(5).
     Statutes in several states and U.S. territories, including 
California, Michigan, Minnesota, New Jersey, Wisconsin and the Virgin 
Islands, refer to, or rely upon, the MIRS. See, e.g., Cal. Rev. & Tax 
Code 439.2 (value of owner-occupied single family dwellings for tax 
purposes); Cal. Civ. Code 1916.7 and 1916.8 (mortgage rates); Mich. 
Comp. Laws 445.1621(d) (mortgage index rates); Minn. Stat. 92.06 
(payments for state land sales); N.J. Rev. Stat. 31:1-1 (interest 
rates); Wis. Stat. 138.056 (variable loan rates); V.I. Code Ann. tit. 
11, sec. 951 (legal rate of interest).
    The Finance Board uses the information collection to produce the 
MIRS and for general statistical purposes and program evaluation. 
Economic policy makers use the MIRS data to determine trends in the 
mortgage markets, including interest rates, down payments, terms to 
maturity, terms on ARMs and initial fees and charges on mortgage loans. 
Other federal banking agencies use the MIRS results for research 
purposes. Information concerning the MIRS is published regularly on the 
Finance Board's website (http://fhfb.gov/mirs) and in press releases, 
in the popular trade press, and in publications of other federal 
agencies.
    The likely respondents include a sample of 307 savings 
associations, mortgage companies, commercial banks and savings banks. 
The information collection requires each respondent to complete FHFB 
Form 10-91 on a monthly basis.
    The OMB number for the information collection is 3069-0001. The OMB 
clearance for the information collection expires on April 30, 2001.

B. Burden Estimate

    The Finance Board estimates the total annual average number of 
respondents at 307, with 12 responses per respondent. The estimate for 
the average hours per response is 1.0 hour. The estimate for the total 
annual hour burden is 3,684 hours (307 respondents  x  12 responses/
respondent  x  approximately 1.0 hour).

C. Comment Request

    In accordance with the requirements of 5 CFR 1320.8(d), the Finance 
Board published a request for public comments regarding this 
information collection in the Federal Register on January 10, 2001. See 
66 FR 1989 (Jan. 10, 2001). The 60-day comment period closed on March 
12, 2001. The Finance Board received one public comment encouraging 
collection of the data in order to continue publication of the index. 
Written comments are requested on: (1) Whether the collection of 
information is necessary for the proper performance of Finance Board 
functions, including whether the information has practical utility; (2) 
the accuracy of the Finance Board's estimates of the burdens of the 
collection of information; (3) ways to enhance the quality, utility, 
and clarity of the information collected; and (4) ways to minimize the 
burden of the collection of information on respondents, including 
through the use of automated collection techniques or other forms of 
information technology. Comments may be submitted to OMB in writing at 
the address listed above.

    By the Federal Housing Finance Board.

    Dated: April 19, 2001.
James L. Bothwell,
Managing Director.
[FR Doc. 01-10406 Filed 4-25-01; 8:45 am]
BILLING CODE 6725-01-P