[Federal Register Volume 85, Number 97 (Tuesday, May 19, 2020)]
[Notices]
[Pages 29959-29961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10659]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7024-N-22]


30-Day Notice of Proposed Information Collection: Application for 
FHA Insured Mortgages; OMB Control No.: 2502-0059

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

ACTION: Notice.

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SUMMARY: HUD has submitted the proposed information collection 
requirement described below to the Office of Management and Budget 
(OMB) for review, in accordance with the Paperwork Reduction Act. The 
purpose of this notice is to allow for an additional 30 days of public 
comment.

DATES: Comments Due Date: June 18, 2020.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/Start Printed Page 
15501PRAMain. Find this particular information collection by selecting 
``Currently under 30-day Review--Open for Public Comments'' or by using 
the search function.

FOR FURTHER INFORMATION CONTACT: Colette Pollard, US Department of 
Housing and Urban Development, 451 7th Street SW, Room 4176, 
Washington, DC 20410-5000; telephone 202-402-3400 (this is not a toll-
free number) or email at [email protected]. Persons with hearing 
or speech impairments may access this number through TTY by calling the 
toll-free Federal Relay Service at (800) 877-8339. Copies of available 
documents submitted to OMB may be obtained from Ms. Pollard. 
Stakeholders may also view the proposed certification at: https://www.hud.gov/program_offices/housing/sfh/SFH_policy_drafts.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A. The Federal Register notice that solicited public comment on 
the information collection for a period of 60 days was published on 
October 25, 2019 at 84 FR 57464.

A. Overview of Information Collection

    Title of Information Collection: Application for FHA Insured 
Mortgages.
    OMB Approval Number: 2502-0059.
    Type of Request: Revision of currently approved collection.
    Form Number: HUD-92900-A, HUD-92900-B, HUD-92900-LT, HUD-92561, 
Model Notice for Informed Consumer Choice Disclosure, Model Pre-
Insurance Review/Checklist, Settlement Certification (previously known 
as Addendum to HUD-1) and HUD-92544.
    Description of the need for the information and proposed use: 
Specific forms and related documents are needed to determine the 
eligibility of the borrower and proposed mortgage transaction for FHA's 
insurance

[[Page 29960]]

endorsement. The Uniform Residential Loan Application (URLA) and form 
HUD-92900-A (Addendum to the URLA) are used in every case by the lender 
to make application for FHA mortgage insurance. Together they describe 
the parties involved, the property, and the conditions and terms on 
which the mortgage insurance will be based. The form HUD-92900-A was 
updated to: Revise certifications to reflect regulations and other 
legal requirements; ensure accuracy of information provided to FHA; 
reduce uncertainty in the industry; maintain the ability to enforce FHA 
program requirements; and remove VA requirements and certifications 
from the 92900-A. Lenders seeking FHA's insurance prepare certain forms 
to collect data.
    Respondents (i.e. affected public): Individuals (loan applicants) 
and Business or other for-profit (lenders).
    Estimated Number of Respondents: 15,871.
    Estimated Number of Responses: 5,798,629.
    Frequency of Response: 365.3631781236.
    Average Hours per Response: 0.1194309943.
    Total Estimated Burdens: 692,542.

B. Solicitation of Public Comment

    This notice is soliciting comments from members of the public and 
affected parties concerning the collection of information described in 
Section A on the following:
    (1) 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) The accuracy of the agency's estimate of the burden of the 
proposed collection of information;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to 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.
    (5) ways to minimize the burden of the collection of information on 
those who are to respond, including the use of automated collection 
techniques or other forms of information technology.
    HUD encourages interested parties to submit comment in response to 
these questions.

C. Authority

    Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 
Chapter 35.

D. Summary of Form HUD-92900-A Comments and HUD Responses

    Comment: A commenter requested copies of all forms included in the 
collection for review.
    HUD Response: HUD emailed the requested forms to the commenter.
    Comment: A commenter asked how these changes would impact the 
Veteran's Administration URLA, VA Form 26-1802a.
    HUD Response: HUD and the Department of Veterans Affairs (VA) both 
use the HUD/VA Addendum to Uniform Residential Application, but the 
form has two different form numbers and expiration dates. VA uses VA 
Form 26-1802a, which expires 02/29/2020 and HUD uses Form HUD-99200-A, 
which expires on 09/30/2022. HUD has notified VA that it was making 
changes to HUD's version of the form to ensure accuracy of information 
provided to HUD; reduce uncertainty in the industry; and maintain the 
ability to enforce HUD program requirements by customizing the 
requirements and loan-level certifications. Once, HUD's changes are 
final and effective, the form HUD-92900-A must be used for HUD loans. 
However, these changes do not affect VA form 26-1802a. HUD does not 
have any information on the status of VA Form 26-1802a.
    Comment: A commenter shared their expectation that the revised 
loan-level certification, along with related reforms, will increase 
borrower access to FHA mortgage credit, encourage depository 
institutions to return to FHA lending, and maximize compliance with FHA 
requirements.
    HUD Response: HUD appreciates this feedback and shares the 
expectations for increased access to and compliance with FHA 
requirements.
    Comment: A commenter suggested that HUD add a knowledge qualifier 
in the Loan Level Certification by replacing ``I certify that the 
statements above are materially correct.'' with ``I certify, to the 
best of my knowledge, that the above statements are materially 
correct.''
    HUD Response: HUD appreciates this comment. HUD does not believe 
the knowledge qualifier should be included in the certification 
statement because the Department has already committed to taking into 
account knowledge as part of the Defect Taxonomy, which provides the 
framework for the evaluation of all defects in loan origination.
    Comment: A commenter suggested that the proposed Loan-Level 
Certification is too inclusive because the referenced sections are 
overbroad. The Commenter suggested editing the certification to read 
``to the extent that no material defect exists in connection with the 
underwriting of this mortgage such that the approval is inconsistent 
with the Handbook Section and with FHA standards, policies and 
guidance.''
    HUD Response: HUD appreciates this comment. HUD does not believe 
the suggested language is necessary because the certification as 
proposed by HUD already captures the approval of the mortgage in 
accordance with FHA requirements and also provides that analysis of any 
defect would be made in light of the Defect Taxonomy. HUD does not 
believe that any greater clarity is afforded by the language proffered 
by the commenter.
    Comment: A commenter stated that the Certification's references to 
the HUD Defect Taxonomy creates an ambiguity that suggests that the 
Taxonomy defines the limit of mortgagee liability only when the 
Department is involved. To be consistent with the Taxonomy and to 
support the program and mortgagees, the Commenter recommends that the 
reference should be more generic.
    HUD Response: HUD does not believe that the reference to the Defect 
Taxonomy creates any ambiguity. HUD's Defect Taxonomy does not itself 
establish or limit liability for violations of HUD requirements, rather 
the Defect Taxonomy demonstrates HUD's commitment to evaluation of any 
defects within the confines of the framework of the Taxonomy.
    Comment: A commenter provided their support for HUD's MOU with DOJ 
and offered assistance with implementation. Specifically the commenter 
suggested that the Department: (1) Define the numerical trigger that 
accounts for differences in lender size and volume, along with 
attaching a defined time period over which the trigger will be 
assessed; and (2) clarify that ``aggravating factors'' means 
``systematic and widespread violations'' and only ones that form a 
``pattern'' of violations; and (3) specifically define the term 
``violation'' to clarify that it means a final Department finding.
    HUD Response: HUD appreciates the comment, but this issue is 
outside of the proposed information collection in this notice.
    Comment: A commenter stated that under the MOU, the MRB will play 
an outsized role in acting as gatekeeper and administrator of the new 
focus on administrative enforcement, rather than

[[Page 29961]]

on abusive FCA suits. The Commenter welcomes this development but 
believes with that increased role comes a need to design an MRB process 
that is open, fair to lenders, and transparent.
    HUD Response: HUD appreciates the comment, but this issue is 
outside of the proposed information collection in this notice.

    Dated: May 13, 2020.
Colette Pollard,
Department Reports Management Officer, Office of the Chief Information 
Officer.
[FR Doc. 2020-10659 Filed 5-18-20; 8:45 am]
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