[Federal Register Volume 80, Number 175 (Thursday, September 10, 2015)]
[Notices]
[Pages 54581-54582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-22759]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5830-N-06]


60-Day Notice of Proposed Information Collection; Legal 
Instructions Concerning Applications for Full Insurance Benefits--
Assignment of Multifamily Mortgages to the Secretary

AGENCY: Office of the General Counsel, HUD.

ACTION: Notice.

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SUMMARY: HUD is seeking approval from the Office of Management and 
Budget (OMB) for the information collection described below. In 
accordance with the Paperwork Reduction Act, HUD is requesting comment 
from all interested parties on the proposed collection of information. 
The purpose of this notice is to allow for 60 days of public comment.

DATES: Comments Due Date: November 9, 2015.

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: Nacheshia Foxx, Reports Liaison 
Officer, Department of Housing and Urban Development, 451 Seventh 
Street SW., Room 10276, Washington, DC 20410-0500.

FOR FURTHER INFORMATION CONTACT: Millicent Potts, Assistant General 
Counsel for Multifamily Mortgage Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
9230, Washington, DC 20410-0500, telephone (202) 708-1274 (this is not 
a toll-free number) for a copy of the instructions.

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 of information 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 
proposed 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 through 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: Legal Instructions Concerning Applications for 
Full Insurance Benefits--Assignment of Multifamily Mortgage to the 
Secretary.
    OMB Control Number, if applicable: 2510-0006.
    Description of the need for the information and proposed use: 
Mortgagees of HUD-insured mortgages may receive mortgage insurance 
benefits upon assignment of mortgages to HUD. In connection with the 
assignment, legal documents (e.g., mortgage, mortgage note, security 
agreement, title insurance policiy) must be submitted to the 
Department. The instructions contained in the Legal Instructions 
Concerning Applications for Full Insurance Benefits--Assigment of 
Multifamily Mortgage describe the documents to be submitted and the 
procedures for submission.
    The Legal Instructions Concerning Applications for Full Insurance 
Benefits--Assigment of Multifamily Mortgage, in its current form and

[[Page 54582]]

structure, can be found at http://intraportal.hud.gov/hudportal/documents/huddoc?id=leginstrfullinsben.pdf.
    HUD proposes to make the following revisions to this document:
    Under Part B, Submissions of Legal Documents after Recordation of 
Assignment, HUD proposes to add a new paragraphs 12 and 13 to read as 
follows:
    12. Flood Insurance. If all or part of the building(s) included 
within the project are in a Special Flood Hazard Area (SFHA), 
acceptable proof of flood insurance coverage. This can be either the 
original flood insurance policy covering the building(s), a copy of the 
Flood Insurance Application and premium payment, a copy of the 
declarations page, or evidence of flood insurance, comprising flood 
insurance coverage equal to the lesser of the insurable value of the 
building(s) or the maximum amount of coverage available for that type 
of property under the National Flood Insurance Program (``NFIP'') (see 
www.fema.gov/business/nfip/manual.shtm). The flood insurance should 
name the mortgagee and the Secretary of Housing and Urban Development 
of Washington, DC, his/her successors and assigns as mortgagee and loss 
payee respectively. The flood insurance must be in effect at least 
through 11:59 p.m. on the date on which the assignment of mortgage is 
recorded. In addition, if the mortgagee submits evidence of flood 
insurance, the mortgagee must submit an affidavit that contains the 
following language and is otherwise acceptable to HUD:

    [Insert name of the mortgagee] affirms under penalty of law that 
the [describe flood insurance policy by name of insurance company or 
producer and policy number] described in the [Evidence of Insurance 
or other document name, as applicable] is in full force and effect 
and names the Secretary of Housing and Urban Development, of 
Washington, DC, his/her successors and assigns, 451 Seventh Street 
SW., Room 9230, Washington, DC 20410-0500 as loss payee as of 
[insert the date of assignment].

    The effective date of this endorsement and mortgagee's affidavit, 
if applicable, should be the date the assignment of mortgage to the 
Secretary is filed for record. The evidence of flood insurance is 
acceptable if it contains language to the effect that it is for 
informational purposes only and does not confer rights upon the holder 
of the policy only if accompanied by the mortgagee's affidavit. A 
Certificate of Insurance is not acceptable.
    13. An assignment of the mortgagee's interest in the flood 
insurance policy should state the following:
    The interest of ______, as the Mortgagee under Policy No. ____ 
issued by ______ is hereby assigned to the Secretary of Housing and 
Urban Development of Washington, DC, his/her successors and assigns. 
Date: ____
    Existing paragraphs 12 through 16 would be unchanged except for 
being redesignated paragraaphs 14 through 18.
    Agency form numbers, if applicable: N/A
    Members of affected public: Mortgagees when applying for insurance 
benefits from HUD.
    Estimation of the total numbers of hours needed to prepare the 
information collection including number of respondents, frequency of 
response, and hours of response:

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                                                                                  Frequency of     Total burden
                    Number of respondents                        Burden hours       response          hours
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359..........................................................              26                1            9,334
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    Status of the proposed information collection: Extension of a 
currently approved collection.

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

    Dated: September 3, 2015.
Camille E. Acevedo,
Associate General Counsel for Regulations and Legislation.
[FR Doc. 2015-22759 Filed 9-9-15; 8:45 am]
BILLING CODE 4210-67-P