[Federal Register Volume 67, Number 41 (Friday, March 1, 2002)]
[Rules and Regulations]
[Pages 9402-9403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4866]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 36

RIN 2900-AJ86


Loan Guaranty: Advertising and Solicitation Requirements

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
loan guaranty regulations by prohibiting advertisements or 
solicitations from lenders that falsely state or imply that they were 
issued by or at the direction of VA or any other entity of the United 
States Government. These provisions are necessary to ensure that 
lenders do not provide misleading information.

DATES: Effective Date: March 1, 2002.

FOR FURTHER INFORMATION CONTACT: R. D. Finneran, Assistant Director for 
Loan Policy and Valuation (262), Loan Guaranty Service, Veterans 
Benefits Administration, Department of Veterans Affairs, 810 Vermont 
Avenue, NW., Washington, DC 20420, (202) 273-7368.

SUPPLEMENTARY INFORMATION: On December 8, 2000, VA published in the 
Federal Register (65 FR 76957) proposed regulatory amendments to 
prohibit advertisements or solicitations from lenders that falsely 
state or imply that they were issued by or at the direction of VA or 
any other entity of the United States Government.
    We solicited comments for a 60-day period ending February 6, 2001. 
We did not receive any comments. Based on the rationale set forth in 
the proposed rule, we are adopting the provision of the proposed rule 
as a final rule.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3520).

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Regulatory Flexibility Act

    The Secretary hereby certifies that adoption of this rule will not 
have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The rule will not have more than a minuscule effect on 
any small entities. Therefore, pursuant to 5 U.S.C. 605(b), the final 
rule is exempt from the initial and final regulatory flexibility 
analysis requirement of sections 603 and 604.

    The Catalog of Federal Domestic Assistance Program number is 
64.114.

List of Subjects in 38 CFR Part 36

    Condominiums, Flood insurance, Housing, Indians, Individuals with 
disabilities, Loan programs-housing and community development, Loan 
programs-Indians, Loan programs-veterans, Manufactured homes, Mortgage 
insurance, Reporting and recordkeeping requirements, Veterans.

    Approved: December 3, 2002.
Anthony J. Principi,
Secretary of Veterans Affairs.

    For the reasons set out in the preamble, 38 CFR part 36 is amended 
as set forth below.

PART 36--LOAN GUARANTY

    1. The authority citation for part 36 continues to read as follows:

    Authority: 38 U.S.C. 501, 3701-3704, 3707, 3710-3714, 3719, 
3720, 3729, 3762, unless otherwise noted.


    2. Section 36.4227 is added to read as follows:


Sec. 36.4227  Advertising and Solicitation Requirements.

    Any advertisement or solicitation in any form (e.g., written, 
electronic, oral) from a private lender concerning manufactured housing 
loans to be guaranteed or insured by the Secretary:
    (a) Must not include information falsely stating or implying that 
it was issued by or at the direction of VA or any other department or 
agency of the United States, and
    (b) Must not include information falsely stating or implying that 
the lender has an exclusive right to make loans guaranteed or insured 
by VA.

(Authority: 38 U.S.C. 3703, 3704)


    3. Section 36.4365 is added to read as follows:


Sec. 36.4365  Advertising and Solicitation Requirements.

    Any advertisement or solicitation in any form (e.g., written, 
electronic, oral) from a private lender concerning housing loans to be 
guaranteed or insured by the Secretary:
    (a) Must not include information falsely stating or implying that 
it was issued by or at the direction of VA or any other department or 
agency of the United States, and
    (b) Must not include information falsely stating or implying that 
the lender has an exclusive right to make loans guaranteed or insured 
by VA.


[[Page 9403]]


(Authority: 38 U.S.C. 3703, 3704)

[FR Doc. 02-4866 Filed 2-28-02; 8:45 am]
BILLING CODE 8320-01-P