[Federal Register Volume 88, Number 143 (Thursday, July 27, 2023)]
[Notices]
[Pages 48491-48492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15819]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7071-N-15]


60-Day Notice of Proposed Information Collection: Quality Control 
Requirements for Direct Endorsement Lenders, OMB Control No.: 2502-0600

AGENCY: Office of the Assistant Secretary for Housing- Federal Housing 
Commissioner, 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: September 25, 2023.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal.
    Written comments and recommendations for the proposed information 
collection can be sent within 60 days of publication of this notice to 
www.reginfo.gov/public/do/PRAMain. Find this particular information 
collection by selecting ``Currently under 60-day Review--Open for 
Public Comments'' or by using the search function. Interested persons 
are also invited to submit comments regarding this proposal by name 
and/or OMB Control Number and can be sent to: Colette Pollard, Reports 
Management Officer, REE, Department of Housing and Urban Development, 
451 7th Street SW, Room 8210, Washington, DC 20410-5000; telephone 202-
402-3400 (this is not a toll-free number) or email at 
[email protected]. for a copy of the proposed forms 
or other available information.

FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management 
Officer, REE, Department of Housing and Urban Development, 451 7th 
Street SW, Washington, DC 20410; email Colette Pollard at 
[email protected], telephone 202-402-3400. This is not a toll-
free number. HUD welcomes and is prepared to receive calls from 
individuals who are deaf or hard of hearing, as well as individuals 
with speech or communication disabilities. To learn more about how to 
make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs. Copies of 
available documents submitted to OMB may be obtained from Ms. Pollard.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A.

A. Overview of Information Collection

    Title of Information Collection: Quality Control Requirements for 
Direct Endorsement Lenders.
    OMB Approval Number: 2502-0600.
    Type of Request: Extension of currently approved collection.
    Form Number: Not Applicable.
    Description of the need for the information and proposed use: Per 
24 CFR 202.8(a)(3), a Direct Endorsement (DE) lender that sponsors 
third party originators (TPOs) is, ``responsible to the Secretary for 
the actions of its third party originators or mortgagees in originating 
loans or mortgages, unless applicable law or regulation requires 
specific knowledge on the part of the party to be held responsible.'' 
As a result, DE lenders are responsible for conducting quality control 
reviews on TPO originations of FHA-insured mortgage loans and ensuring 
that their Quality Control Plans contain this oversight provision. This 
creates an information collection burden on DE lenders, since these 
institutions must also conduct quality control on loans they originate 
and underwrite. DE lenders must conduct quality control reviews on a 
sample of loans that they originate or underwrite, including loans 
originated by TPOs. For the purposes of this information collection, it 
is assumed that the number of loans reviewed by each DE lender will 
comply with the Sample Size Standard and Sample Composition Standard 
described in HUD Handbook 4000.1, section V.A.3.a.
    In addition, under 24 CFR 203.255(c) and (e), HUD conducts both 
pre- and post-endorsement reviews of loans submitted for FHA insurance 
by DE lenders. As part of those reviews, the Secretary is authorized to 
determine if there is any information indicating that any certification 
or required document is false, misleading, or constitutes fraud or 
misrepresentation on the part of any party, or that the mortgage fails 
to meet a statutory or regulatory requirement. In order to assist the 
Secretary with this directive, FHA requires that lenders self-report 
all findings of fraud and material misrepresentation, as well any 
material findings concerning the origination, underwriting, or 
servicing of the loan that the lender is unable to mitigate or 
otherwise resolve, per HUD Handbook 4000.1, sections V.A.2.d. iv (A) 
and V.A.2.d.iv (B). The obligation to self-report these findings 
creates an additional information collection burden on DE lenders.
    Respondents: Active Title II Direct Endorsement Lenders.
    Estimated Number of Respondents: 3,187.
    Estimated Number of Responses: 67,710.
    Frequency of Response: Annually.
    Average Hours per Response: .25.
    Total Estimated Burden Hours: 16,927.50.

[[Page 48492]]



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                                             Number of     Frequency of    Responses per   Burden hours    Annual burden    Hourly cost
         Information collection             respondents      response          annum       per response        hours       per response     Annual cost
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Quality control of Early Payment                   1,463              26          38,038             .25        9,509.50          $53.22     $506,095.59
 Defaults (EPDs)........................
Quality control of loan originations....           1,463              16          23,408             .25           5,852           53.22      311,443.44
Quality control through lender self-                 261              24           6,264             .25           1,566           53.22       83,342.52
 reports................................
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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.
    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.

Jeffrey D. Little,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2023-15819 Filed 7-26-23; 8:45 am]
BILLING CODE 4210-67-P