[Federal Register Volume 69, Number 45 (Monday, March 8, 2004)]
[Rules and Regulations]
[Pages 10618-10619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5108]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 36

RIN 2900-AL85


Delegation of Authority--Property Management Contractor

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending its 
delegation of authority regulation with respect to the loan guaranty 
program. This amendment will permit certain officers of the private 
contractor performing property management functions to execute all 
documents necessary for the management and sale of single-family 
properties acquired by VA under its housing loan guaranty program. This 
amendment will provide notice to buyers, lenders, and other real estate 
professionals of the contractor's authority to sign these documents 
rather than requiring VA to prepare and record powers of attorney, 
thereby increasing the efficiency of the loan guaranty program.

DATES: Effective Date: March 8, 2004.

FOR FURTHER INFORMATION CONTACT: William W. Lutes, Assistant Director 
for Property Management and Strategic Development (263), Veterans 
Benefits Administration, 810 Vermont Ave., Washington, DC 20420, 
telephone 202-273-7379.

SUPPLEMENTARY INFORMATION: The provisions of 38 U.S.C. chapter 37 
authorize the Secretary of Veterans Affairs (VA) to guarantee or make 
loans to veterans. Following the termination of loans which have been 
in serious default, the holder of the guaranteed loan may, pursuant to 
38 U.S.C. 3732(c), have an election to convey to the Secretary the 
property which had secured the loan. Upon receipt of these properties, 
VA sells them to the general public in order to reduce the loss to the 
Federal Treasury on the guaranteed loan. The sale of such properties is 
not a benefit to veterans.
    VA has contracted with a private entity to handle the management 
and resale of its inventory of acquired properties. In order to 
increase the efficiency of this contract, certain officers of the 
contractor are being delegated authority to execute, on behalf of VA, 
routine documents necessary for the management and sale of these 
properties.
    Currently, 38 CFR 36.4342 authorizes certain VA officials, such as 
field station Directors, Loan Guaranty Officers, and Assistant Loan 
Guaranty Officers, to execute these documents. Regional Offices are 
required to maintain a cumulative list of all employees of that office 
who have held the designated positions since May 1, 1980. In addition, 
38 CFR 36.4342(e) authorizes certain officers of the private contractor 
servicing loans made or acquired by VA to execute on behalf of the 
Secretary all documents necessary for the servicing and termination of 
those loans. VA also maintains a log of the corporate officers who have 
been authorized to execute these documents.
    This rule adds a new paragraph (f) to 38 CFR 36.4342 which 
delegates to persons holding the office of Senior Vice President, Vice 
President, Assistant Vice President, Assistant Secretary, Director, and 
Senior Manager of the entity performing property management and sales 
functions under a contract with VA the authority to execute all 
documents necessary for the management and sale of residential real 
property acquired by VA under the housing loan program authorized by 38 
U.S.C. chapter 37. Documents authorized to be executed will include 
sales contracts, deeds, documents relating to removing adverse 
occupants, and any documents relating to sales closings. The 
authorization to execute deeds is limited to deeds other than general 
warranty deeds.
    The Director of the VA Loan Guaranty Service, Washington, DC, will 
maintain a log listing all corporate officers of the contractor who 
have been authorized to execute documents and the dates during which 
these persons were authorized to act. VA will also maintain copies of 
resolutions of the contractor's board of directors authorizing these 
persons to execute these documents. Those files will be available for 
public inspection and copying during normal business hours at the 
Office of the Director of VA Loan Guaranty Service, Washington, DC 
20420.
    The provisions of 38 CFR 36.4342(f) are published without regard to 
the notice and comment and delayed effective date provisions of 5 
U.S.C. 553 since they relate to agency management and personnel and are 
not substantive rules.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector of 
$100 million or more in any given year. This proposed amendment would 
have no such effect on State, local, or tribal governments, or the 
private sector.

Paperwork Reduction Act

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

Regulatory Flexibility Act

    The Secretary of Veterans Affairs hereby certifies that this final 
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 final rule relates to agency 
management and personnel and does not contain substantive provisions 
affecting small

[[Page 10619]]

entities. Accordingly, pursuant to 5 U.S.C. 605(b), this final rule is 
exempt from the initial and final regulatory flexibility analysis 
requirements of sections 603 and 604.
    There is no Catalog of Federal Domestic Assistance number for this 
program.

List of Subjects in 38 CFR Part 36

    Condominiums, 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: February 24, 2004.
Anthony J. Principi,
Secretary of Veterans Affairs.

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

PART 36--LOAN GUARANTY

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1. The authority citation of 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.

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2. Section 36.4342 is amended by:
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a. Adding paragraph (f) immediately after paragraph (e).
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b. Removing the second authority citation that appears at the end of 
the section.
    The addition reads as follows:


Sec.  36.4342  Delegation of authority.

* * * * *
    (f)(1) Authority is hereby delegated to the officers, designated in 
paragraph (f)(2) of this section, of the entity performing property 
management and sales functions under a contract with the Secretary to 
execute on behalf of the Secretary all documents necessary for the 
management and sales of residential real property acquired by the 
Secretary pursuant to 38 U.S.C. chapter 37. Documents executed under 
this paragraph include but are not limited to: sales contracts, deeds, 
documents relating to removing adverse occupants, and any documents 
relating to sales closings. The authorization to execute deeds is 
limited to deeds other than general warranty deeds.
    (2) The designated officers are: Senior Vice President, Vice 
President, Assistant Vice President, Assistant Secretary, Director, and 
Senior Manager.
    (3) The Director, Loan Guaranty Service, Washington, DC, shall 
maintain a log listing all persons authorized to execute documents 
pursuant to paragraph (f) of this section and the dates such persons 
held such authority, together with certified copies of resolutions of 
the board of directors of the entity authorizing such individuals to 
perform the functions specified in paragraph (f)(1) of this section. 
These records shall be available for public inspection and copying at 
the Office of the Director of VA Loan Guaranty Service, Washington, DC 
20420.
* * * * *
(Authority: 38 U.S.C. 501, 3720(a)(5))

[FR Doc. 04-5108 Filed 3-5-04; 8:45 am]
BILLING CODE 8320-01-P