[Federal Register Volume 71, Number 197 (Thursday, October 12, 2006)]
[Notices]
[Pages 60165-60168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16901]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5076-D-08]


Delegations of Authority for the Office of Housing--Federal 
Housing Administration (FHA), Redelegation of Authority to the Deputy 
Assistant Secretary for Finance and Budget

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

ACTION: Notice of revocation and redelegation of authority to the 
Office of Finance and Budget.

-----------------------------------------------------------------------

SUMMARY: On August 11, 2003, the Assistant Secretary for Housing--
Federal Housing Commissioner and the General Deputy Assistant Secretary 
for Housing--Deputy Federal Housing Commissioner issued a comprehensive 
redelegation of authority to the Deputy Assistant Secretary for the 
Office of Finance and Budget. This redelegation of authority was 
published on August 20, 2003. Today's notice updates and republishes in 
its entirety the redelegation of authority to Office of Finance and 
Budget.

DATES: Effective Date: September 15, 2006.

FOR FURTHER INFORMATION CONTACT: Eliot C. Horowitz, Senior Advisor to 
the Assistant Secretary for Housing--Federal Housing Commissioner, 
Office of Housing, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 9110, Washington, DC 20410-8000, phone (202) 
708-0614, extension 2125. (This is not a toll-free number.) Persons 
with hearing or speech impairments may access this number through TTY 
by calling the toll-free Federal Information Relay Service number at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: Section I of this document describes the 
organization of the Office of Finance and Budget. That organization has 
not undergone change since the August 20, 2003, publication of the 
redelegation of authority to Office of Finance and Budget. The August 
20, 2003, redelegation of authority was published at 68 FR 50176.
    Section II of this notice describes the authority redelegated to 
the Deputy Assistant Secretary for Finance and Budget. On March 17, 
2004, the Assistant Secretary for Housing issued a redelegation of 
authority (that was not published) authorizing each Office of Housing 
Deputy Assistant Secretary (DAS) to perform all of the functions of a 
source selection official. The authority redelegated can only be 
exercised: (1) In relation to a procurement for which the DAS has 
subject matter jurisdiction and (2) consistent with HUD procurement 
policies and procedures, the Federal Acquisition Regulation (FAR), and 
the HUD Acquisition Regulation (HUDAR). Accordingly, a new function 
item, designated as L, has been added to the authority redelegated to 
the Deputy Assistant Secretary for Finance and Budget under Section II 
below. Otherwise, no change has been made to the authority redelegated 
to Deputy Assistant Secretary for Finance and Budget on August 11, 
2003, and that authority remains in effect.

Section I. Deputy Assistant Secretary for Finance and Budget: 
Organization

    Four offices report to the Deputy Assistant Secretary for Finance 
and Budget. These are the (1) Office of Evaluation; (2) Office of 
Budget and Field Resources; (3) Office of Asset Sales; and (4) Office 
of the Housing-FHA Comptroller. The following is a brief summary of 
each of these offices.

A. Office of Evaluation

    The Office of Evaluation assesses the financial impact of new or 
revised HUD/FHA programs and policies, new or proposed legislation, 
and/or new or proposed rules and regulations of the Office of 
Management and Budget (OMB), the Government Accountability Office 
(GAO), or the Department of Treasury (Treasury). Based on these 
assessments, the Office of Evaluation develops recommendations, 
alternatives, and various scenarios used by managers to determine 
appropriate actions. The Office of Evaluation is responsible for 
actuarial analyses and cash flow projections of the FHA insurance funds 
and evaluates relationships between current market conditions and FHA 
program goals and objectives. The Office of Evaluation uses both 
internal and external resources to estimate the financial impact of 
policy changes or external factors (such as

[[Page 60166]]

regional recessions or natural disasters) on FHA programs. The 
following additional functions are conducted by the Office of 
Evaluation: monitoring daily cash flows to make sound investments; 
conducting quarterly analyses of economic developments; and conducting 
on-going actuarial analyses of FHA's insurance funds.

B. The Office of Budget and Field Resources

    The Office of Budget and Field Resources is responsible for the 
formulation, presentation, and execution of the Office of Housing's 
program and administrative budgets. This includes fund assignments and 
control, financial resource management, coordination of financial 
resources in support of field operations, and budget analysis and 
reporting. The Office of Budget and Field Resources is responsible for 
analyzing and evaluating the financial and budgetary impact of new or 
revised Office of Housing programs and policies, proposed legislation, 
and new or revised OMB, GAO, or Treasury guidance. The responsibilities 
and duties of personnel within the Office of Budget and Field Resources 
pertain to internal HUD matters, do not require rendering decisions 
that bind HUD in relation to external clients and customers and, 
therefore, do not require delegations of authority.

C. Office of Asset Sales

    The Office of Asset Sales oversees the disposition of mortgage 
notes acquired by Housing upon a default by the mortgagor and 
assignment of the note to FHA in return for the payment of a claim. The 
Office of Asset Sales is responsible for the sale of single family, 
multifamily, and hospital notes in the manner most advantageous to the 
federal government. The Office of Asset Sales develops alternative 
disposition methods that will reduce the acquisition and holding costs 
of these assets while increasing recovery upon sale.

D. Office of the Housing-FHA Comptroller

    The Office of the Housing-FHA Comptroller is a Headquarters 
operation. The Office of the Housing-FHA Comptroller contains one field 
component, the Financial Operations Center, located in Albany, New 
York, that reports to one of the three major Washington, DC, offices 
within the Office of the Housing-FHA Comptroller. A description of the 
three major offices follows:
    (1) The Office of Financial Services: The Office of Financial 
Services is comprised of three Headquarters divisions, and one field 
component, the Financial Operations Center, which is located in Albany. 
The Office of Financial Services provides the policy direction, review, 
and coordination required to collect insurance premiums, to provide the 
financial services required to support FHA's multibillion dollar Single 
Family, Multifamily, and Title I insurance portfolios, and to provide 
the financial support necessary to manage FHA's asset management and 
disposition programs. The Office of Financial Services collects and 
maintains financial data necessary to generate accurate accounting 
entries to the General and Subsidiary ledgers and FHA's financial 
statements. The Office of Financial Services supports the systems and 
staff needed to maintain the insurance operations for FHA programs. The 
Office of Financial Services provides policy guidance and oversight for 
FHA's debt management and due diligence activities in the Financial 
Operations Center and supports FHA's asset sales programs. A summary of 
each division and the Financial Operations Center follows:
    (a) The Single Family Insurance Operations Division. This Division 
is responsible for performing the accounting functions and providing 
financial management services to FHA approved lenders that originate 
and/or service FHA Single Family insured mortgages. The Single Family 
Insurance Operations Division maintains the national portfolio that 
consists of 13 million insurance records of active and terminated 
Single Family FHA-insured loans. The Single Family Insurance Operations 
Division collects the mortgage insurance premiums and processes refunds 
of premium overpayments to lenders and homeowners.
    (b) The Single Family Post Insurance Division. This Division is 
responsible for providing accounting and processing functions necessary 
to support the FHA single family asset acquisition, management, and 
disposition operations. The Single Family Post Insurance Division 
directs and coordinates all operating requirements, systems 
development, and reporting functions requirements for its areas of 
responsibility. The Single Family Post Insurance Division provides 
servicing support, claims processing, and asset disposition processing. 
It also provides contractor oversight as appropriate.
    (c) The Multifamily Financial Operations Division. This Division is 
responsible for performing the accounting and financial management 
services necessary for the servicing of all multifamily, insured 
mortgages in the FHA portfolio and the support of the approved lenders 
that hold FHA-insured mortgages. The Multifamily Financial Operations 
Division is also responsible for the servicing of HUD-held Multifamily 
mortgages and the payment of claims for Multifamily defaulted 
mortgages. These responsibilities include collection of insurance 
premiums, management of escrow accounts, payments of preservation and 
protection expenses, and recording of mortgage satisfactions.
    (d) The Financial Operations Center. The Financial Operations 
Center (or Center) is responsible for providing policy guidance, system 
support, and general oversight of FHA debt management, collection, and 
due diligence/asset liquidation activities for FHA Assets not elsewhere 
administered. The Center is also responsible for all financial duties 
relating to the HUD-owned Title I Insurance portfolio such as 
establishing repayment plans, administering the Treasury offset 
program, and accepting compromise plans or write-offs.
    (2) The Office of Financial Analysis and Reporting: The Office of 
Financial Analysis and Reporting is comprised of three Headquarters 
Divisions. The Office of Financial Analysis and Reporting is 
responsible for classifying, summarizing, analyzing, and reporting the 
financial, accounting, and budgetary activities and transactions for 
FHA/Housing activities as required for a wholly-owned government 
corporation, subject to the provisions of the Government Corporation 
Control Act. The Office of Financial Analysis and Reporting also 
evaluates the impact of new or proposed OMB, GAO, or Treasury rules and 
regulations, develops financial performance measures, and oversees cash 
management and investment. Primary functions include developing and 
implementing accounting policies and procedures based on Federal Basis 
Generally Accepted Accounting Principles (FGAAP) requirements and 
directives and regulations from OMB, Treasury, Congress, and the 
Administration; reconciling actual cash, accounting, and budgetary 
events to independent source documents to assure the Department that 
the general ledger accounts are in order and the budgetary statements 
accurately represent account balances; participating with auditors, 
both internal and external, in the planning and conduct of accounting 
and financial management audits, investigations, and reviews; 
monitoring daily cash flows; making sound investments; and preparing 
the FHA Annual Report. A

[[Page 60167]]

description of the three divisions follows.
    (a) Financial Analysis and Controls Division. This Division is 
responsible for developing and implementing accounting and budgetary 
reporting policy. It is responsible for ensuring that all requirements, 
internal and external, relating to financial reporting and accounting 
are followed in FHA's accounting practices and that any changes to such 
requirements are communicated to appropriate staff.
    (b) General Ledger Division. This Division is responsible for the 
preparation of all the cost accounting, Credit Reform accounting, FGAAP 
accounting, and budgetary accounting entries that update the General 
and Subsidiary ledgers of FHA. This includes all daily transactions and 
FGAAP entries at the end of each accounting period, as required, 
together with special entries as required by Credit Reform and 
budgetary accounting.
    (c) The Financial Reporting Division. This Division monitors and 
prepares Housing's official responses to audit issues. This involves 
both program and financial audits performed by both internal and 
external organizations.
    (3) Office of Systems and Technology: The Office of Systems and 
Technology coordinates the development and maintenance of integrated 
financial and management information systems necessary for accounting 
and management of the Housing and FHA programs.

Section II. Redelegations to the Office of the Deputy Assistant 
Secretary for Finance and Budget

    The Assistant Secretary redelegates program authority in broad 
terms to the Deputy Assistant Secretary for Finance and Budget. In 
addition, the Housing-FHA Comptroller, who reports to the Deputy 
Assistant Secretary for Finance and Budget, is redelegated concurrent 
authority, with that of the Deputy Assistant Secretary for Finance and 
Budget, to oversee the FHA financial operations and other Office of 
Housing programs. The general functions and a brief description of the 
authority redelegated are as follows:

A. General Authority

    Authority is redelegated to the (1) Deputy Assistant Secretary for 
Finance and Budget to sign any and all documents necessary to carry out 
the business of the Office of Finance and Budget, including oversight 
of FHA financial operations, and (2) the Housing-FHA Comptroller to 
sign any and all documents necessary to carry out the oversight of FHA 
financial operations. In concert with the specific authorities 
redelegated to each of them, the Deputy Assistant Secretary for Finance 
and Budget and the Housing-FHA Comptroller, in considering a 
transaction, are also redelegated authority to waive any directives not 
mandated by statute or regulation, for good cause and with a written 
justification.

B. Oversight of Financial Operations

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated such authority as is necessary to oversee the financial 
management and operations of Office of Housing programs. The FHA 
Comptroller, who reports to the Deputy Assistant Secretary for Finance 
and Budget, is responsible for overseeing the financial operations of 
the FHA.

C. Investment of Surplus Funds

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated authority to invest FHA funds in certain specified types of 
accounts, e.g., U.S. Treasury securities.

D. Borrowing From the U.S. Treasury

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated authority to borrow from the U.S. Treasury such funds as 
necessary to maintain a positive cash flow in the various FHA insurance 
funds.

E. Administration of the FHA Title I Loans

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated the authority to perform such duties as are necessary to 
carry out the financial functions of the FHA Title I Program.

F. Administration of the FHA Title II Insured Loans

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated the authority to perform such actions as may be necessary 
to carry out the financial functions of all FHA Title II insured loans.

G. Payment of FHA Claims

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated such authority to perform such actions as may be necessary 
to make FHA claim payments. These duties include but are not limited to 
determining the appropriate amount of benefits to be paid, making 
appropriate certifications for payments issued in debentures and/or 
cash, extending requisite time periods for a lender's submission of 
financial claim documentation, and collecting, through administrative 
offset, any indebtedness due HUD.

H. Servicing of HUD-Held Loans

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated the authority to perform such duties as are necessary to 
carry out the financial responsibilities for HUD-held notes and 
properties including but not limited to collecting mortgage payments, 
ensuring the protection and preservation of collateral, establishing 
and directing the use of funds in escrow accounts, and executing 
appropriate legal documents upon payment-in-full of a mortgage.

I. Liaison With the U.S. Treasury Department

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated such authority as is necessary to process and effect such 
transactions with the U.S. Treasury as may be required in the normal 
operation of FHA operations.

J. Sale of FHA Assets

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated such authority as is necessary to sell Secretary-held 
mortgages.

K. Management of HUD-Held Mortgages, Notes, and HUD-Owned Properties

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated such authority as is necessary to make disbursements on 
HUD-owned or managed properties for the payment of property-related 
expenses, including property taxes, utility bills, property management 
fees, etc.

L. Source Selection Official

    The Deputy Assistant Secretary for Finance and Budget is 
redelegated authority to perform all functions of a source selection 
official.

Section III. Further Redelegations

    The authority redelegated by the Assistant Secretary for Housing-
Federal Housing Commissioner and the General Deputy Assistant 
Secretary-Deputy Federal Housing Commissioner to the Deputy Assistant 
Secretary for Finance and Budget may be redelegated by memorandum. A 
copy of the redelegation will be maintained by the employee receiving 
the delegation and by the Deputy Assistant Secretary for Finance and 
Budget and available for public inspection. The Housing-FHA Comptroller 
may not redelegate the authority redelegated herein.

Section IV. Revocation of Delegations

    The Assistant Secretary for Housing-Federal Housing Commissioner or 
the

[[Page 60168]]

General Deputy Assistant Secretary for Housing-Deputy Federal Housing 
Commissioner may, at any time, revoke any of the authority redelegated 
herein. Notice of any revocation will be published in the Federal 
Register. This redelegation of authority supersedes and/or revokes all 
prior redelegations of authority to staff in the Office of the Housing-
FHA Comptroller.

    Authority: Section 7(d), Department of Housing and Urban 
Development Act, 42 U.S.C. 3535(d).


    Dated: September 15, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. E6-16901 Filed 10-11-06; 8:45 am]
BILLING CODE 4210-67-P