[Federal Register Volume 69, Number 110 (Tuesday, June 8, 2004)]
[Notices]
[Pages 32038-32039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-12850]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4907-N-19]


Notice of Proposed Information Collection: Comment Request; 
Insurance for Home Equity Conversion Mortgages/Residential Loan 
Application for Reverse Mortgages; and Home Equity Conversion Mortgage 
(HECM) Program; Insurance for Mortgages to Refinance Existing HECMs 
(FR-4667); HECM Consumer Protection Measures Against Excessive Fees; 
and HECM anti-Churning Disclosure

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: The proposed information collection requirement described 
below will be submitted to the Office of Management and Budget (OMB) 
for review, as required by the Paperwork Reduction Act. The Department 
is soliciting public comments on the subject proposal.

DATES: Comments Due Date: August 9, 2004.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Comments should refer to the proposal by name and/or OMB 
Control Number and should be sent to: Wayne Eddins, Reports Management 
Officer, Department of Housing and Urban Development, 451 7th Street, 
SW., L'Enfant Plaza Building, Room 8202, Washington, DC 20410.

FOR FURTHER INFORMATION CONTACT: Vance T. Morris, Director, Office of 
Single Family Program Development, Single Family Housing, Department of 
Housing and Urban Development, 451 7th Street, SW., Washington, DC 
20410, telephone (202) 708-2121 (this is not a toll free number) for 
copies of the proposed forms and other available information.

SUPPLEMENTARY INFORMATION: The Department is submitting the proposed 
information collection to OMB for review, as required by the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35, as amended).
    This notice is soliciting comments from members of the public and 
affected agencies concerning the proposed collection of information to: 
(1) Evaluate whether the proposed collection is necessary for the 
proper performance of the functions of the agency, including whether 
the information will have practical utility; (2) evaluate the accuracy 
of the agency's estimate of the burden of the propose collection of 
information; (3) enhance the quality, utility, and clarity of the 
information to be collected; and (4) minimize the burden of the 
collection of information on those who are to respond; including the 
use of appropriate automated collection techniques or other forms of 
information technology, e.g., permitting electronic submission of 
responses.
    This notice also lists the following information:
    Title of Proposal: Insurance for Home Equity Conversion Mortgages/
Residential Loan Application for Reverse Mortgages; and Home Equity 
Conversion Mortgage (HECM) Program; Insurance for Mortgages to 
Refinance Existing HECMs (FR-4667); HECM Consumer Protection Measures 
Against Excessive Fees; and HECM Anti-Churning Disclosure.
    OMB Control Number, if applicable: 2502-0524.
    Description of the need for the information and proposed use: The 
documents requested are used to determine the eligibility of a loan 
application for FHA's mortgage insurance. Without these documents, HUD 
would have difficulty in determining the eligibility of a loan 
application and, thus, put in jeopardy the insurance fund. For the 
Insurance for Mortgage to Refinance Existing HECMs, control number 
2502-0546 and HECM Consumer Protection Measures Against Excessive Fees, 
OMB control number 2502-0534, which is being replaced with this PRA 
package, please see the following language:
    The Insurance for Mortgages to Refinance Existing HECMs, Section 
255(k) of the National Housing Act establishes a ``Disclosure'' 
requirement, which is designed to ensure that homeowners are made aware 
of the costs associated with HECM refinancing. This regulator provision 
would require that the lender provide the mortgagor, a good faith 
estimate of: (a) Total cost of the refinancing; and (b) Increase in the 
mortgagor's principal limit as measured by the estimated initial 
principal limit on the mortgage to be insured less the current 
principal limit on the HECM that is being refinanced.
    To assure that the homeowner is not obtaining a HECM mortgage under 
an obligation to pay excess fees for services, the lender must 
establish that the mortgagor will not have incurred such outstanding or 
unpaid obligations in connection with the mortgage; and that the 
initial payment from the HECM will not be used to pay to or on behalf 
of an estate planning service firm. At closing, the lender must assure 
that the homeowner has received full disclosure of all costs of 
obtaining the mortgage, including asking the mortgagor about any costs 
or other obligations that the mortgagor has incurred to obtain the 
mortgage, and confirm that the mortgagor will not use any part of the 
amount disbursed for payments to or on behalf of an estate planning 
firm.
    Agency form numbers, if applicable: FNMA 1009 and HUD Form 92901.

[[Page 32039]]

    Estimation of the total numbers of hours needed to prepare the 
information collection including number of respondents, frequency of 
response, and hours of response: Total hours for collecting information 
on an annual basis equals--

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                                                Frequency of      Hours of      Burden      Hourly
            Number of respondents                respondents      response       hours       rate     Total cost
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                                              Residential Application
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17,000.......................................               1           1.0       17,000      $15.00    $255,000
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                                                     Refinance
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17,000.......................................               1            .5        8,500      $25.00    $212,000
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                                Consumer Measures Against Excessive Fees Disclosure
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Number of Disclosures
17,000.......................................               1            .10      17,000  ..........  ..........
Counselor Information
17,000.......................................               2            .25       8,500  ..........  ..........
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                                             Anti-Churning Disclosure
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Disclosure to Mortgagor
17,000.......................................               1            .25       4,250  ..........  ..........
                                               ..............  .............      14,450      $12.00    $173,400
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    Grand Total..............................  ..............  .............      39,950  ..........    $640,900
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    The $12,000 hourly rate reflects the cost paid to counselors for 
providing counseling services to the mortgagor regarding the fees 
associated with applying for the HECM program and refinancing existing 
HECM loans. The counselors are required to inquire of the mortgagor if 
have been contacted by an estate planning service firm and paying a fee 
at or after closing.
    The 34,000 Counselor Information Respondents represents the number 
of potential applicants that will be counseled.
    The $25 and $15 hourly rate is paid to mortgagees who are required 
to process the Residential Loan and Refinance Applications.
    Status of the proposed information collection: Reinstatement of a 
currently approved collection OMB Control No. (2502-0524) and 
termination of OMB Control No. (2502-0546) and OMB Control No. (2502-
0534).

    Authority: The Paperwork Reduction Act of 1995, 44 U.S.C., 
chapter 35, as amended.

    Dated: May 4, 2004
Sean G. Cassidy,
General Deputy Assistant Secretary for Housing-Deputy Federal Housing 
Commissioner.
[FR Doc. 04-12850 Filed 6-7-04; 8:45 am]
BILLING CODE 4210-27-M