[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Rules and Regulations]
[Pages 72868-72869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33672]
[[Page 72867]]
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Part XII
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 200
Single Family Mortgage Insurance; Appraiser Roster Placement
Procedures; Final Rule
Federal Register / Vol. 64, No. 248 / Tuesday, December 28, 1999 /
Rules and Regulations
[[Page 72868]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 200
[Docket No. FR-4429-F-02]
RIN 2502-AH29
Single Family Mortgage Insurance; Appraiser Roster Placement
Procedures
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: This final rule adopts certain of the provisions concerning
HUD's Appraiser Roster that were published for public comment in a
proposed rule on July 2, 1999. The Appraiser Roster lists appraisers
who are eligible to perform Federal Housing Administration single
family appraisals. The provisions adopted by this final rule codify the
current Appraiser Roster placement procedure. The provisions published
in the proposed rule concerning the Appraiser Roster removal procedure
are being further considered by HUD and will be addressed in a separate
rulemaking.
DATES: Effective Date: January 27, 2000.
FOR FURTHER INFORMATION CONTACT: Vance T. Morris, Director, Home
Mortgage Insurance Division, Office of Insured Single Family Housing,
Room 9266, U.S. Department of Housing and Urban Development, 451
Seventh Street, SW, Washington, DC 20410-8000; telephone (202) 708-2700
(this is not a toll-free number). Hearing- or speech-impaired
individuals may access this number via TTY by calling the toll-free
Federal Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. HUD's Appraiser Roster
HUD's Appraiser Roster lists appraisers who are eligible to perform
Federal Housing Administration (FHA) single family appraisals. HUD
maintains the Appraiser Roster to provide a means by which HUD can
monitor the quality of appraisals performed on single family homes
financed through FHA single family programs and to ensure that
appraisers performing FHA appraisals meet high competency standards.
The Appraiser Roster is an important part of the FHA Single Family
Mortgage Insurance program because accurate appraisals are vital to the
success of the Program and HUD's ability to protect the FHA insurance
funds.
II. The July 2, 1999 Proposed Rule
On July 2, 1999, HUD published for public comment a proposed rule
(64 FR 36216) that would have codified the current placement procedure
for HUD's Appraiser Roster and proposed an independent procedure for
removing an appraiser from the Appraiser Roster. HUD proposed this
independent removal procedure, separate and apart from HUD's existing
debarment, suspension, and limited denial of participation
administrative remedies, in order to better safeguard the FHA insurance
funds and to better protect homebuyers. A complete description of these
procedures is presented in the preamble to the July 2, 1999 proposed
rule.
III. This Final Rule
This final rule adopts certain of the provisions concerning HUD's
Appraiser Roster published in the July 2, 1999 proposed rule.
Specifically, this final rule adopts the provisions that codify the
current Appraiser Roster placement procedure. This final rule does not
adopt the independent removal procedure nor certain other related
provisions. A summary of the provisions adopted by this final rule is
presented in section V. of this preamble.
The public comment period for the proposed rule closed on August 2,
1999. HUD received 2 comments. We received one comment from a banking
institution and the other from a trade association. One of the
commenters wrote in favor of the proposed rule. The other commenter
raised a number of concerns about the proposed removal procedure.
Neither commenter raised issues concerning the codification of HUD's
current placement procedure. Consequently, HUD is adopting this
procedure without change.
HUD, however, has decided not to adopt the proposed independent
removal procedure in this final rule.
IV. Plain Language
Please note that the structure of the proposed rule has been
revised in this final rule to comply with President Clinton's
Memorandum of June 1, 1998, entitled ``Plain Language in Government''
(63 FR 31885). In this memorandum, President Clinton directed Federal
agencies to use plain language in all government writing. With respect
to rulemaking, President Clinton directed Federal agencies to use plain
language in new proposed and final rules beginning January 1, 1999.
Plain language is an approach to writing that promotes responsive,
accessible, and understandable written communications.
In particular, the structure of this final rule has been revised to
present the rule in question-and-answer format. This was done to
improve clarity and to make the regulations more user-friendly. The
substance of each section, however, as proposed in the July 2, 1999
rule, has not been changed. In addition, some of the proposed
regulatory language has been revised. Again, these revisions do not
change the substance of each section. The revisions are also intended
to improve the clarity of the final rule.
V. Summary of Provisions Adopted by this Final Rule
The following table presents a summary of the provisions adopted by
the final rule. The table also serves as a guide to the plain language
organizational changes implemented by the final rule. The first column
of the table lists the provisions of the proposed rule. If the
provision has been adopted by this final rule, the second column lists
where in the new organization the provision appears. If the provision
has not been adopted, the second column indicates that the provision
has not been adopted by the final rule.
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Adopted by this final rule
Provision in proposed rule * * * at * * *
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Sec. 200.200(a).......................... Sec. 200.200(a)
Sec. 200.200(b).......................... Sec. 200.200(b)
Sec. 200.200(c).......................... Sec. 200.202
Sec. 200.200(d).......................... Not adopted by this final
rule.
Sec. 200.200(e).......................... Sec. 200.206
Sec. 200.200(f).......................... Not adopted by this final
rule.
Sec. 200.200(g).......................... Not adopted by this final
rule.
Sec. 200.200(h).......................... Not adopted by this final
rule.
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VI. Findings and Certifications
Paperwork Reduction Act Statement
The information collection requirements contained in this rule have
been submitted to the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) and assigned OMB
control number 2502-0538. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless the collection displays a valid control number.
Environmental Impact
This final rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern or regulate, real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise or
[[Page 72869]]
provide for standards for construction or construction materials,
manufactured housing, or occupancy. Accordingly, under 24 CFR
50.19(c)(1), this final rule is categorically excluded from
environmental review under the National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Regulatory Flexibility Act
The Secretary has reviewed this final rule before publication, and
by approving it certifies, in accordance with the Regulatory
Flexibility Act (5 U.S.C. 605(b)), that this final rule would not have
a significant economic impact on a substantial number of small
entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) requires Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and on
the private sector. This final rule does not impose, within the meaning
of the UMRA, any Federal mandates on any State, local, or, tribal
governments or on the private sector.
Federalism Impact
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on State and local governments and
is not required by statute, or preempts State law, unless the relevant
requirements of section 6 of the Executive Order are met. This final
rule does not have federalism implications and does not impose
substantial direct compliance costs on State and local governments or
preempt State law within the meaning of the Executive Order.
VII. List of Subjects in 24 CFR Part 200
Administrative practice and procedure, Claims, Equal employment
opportunity, Fair housing, Home improvement, Housing standards,
Incorporation by reference, Lead poisoning, Loan programs--housing and
community development, Minimum property standards, Mortgage insurance,
Organization and functions (Government agencies), Penalties, Reporting
and recordkeeping requirements, Social security, Unemployment
compensation, Wages.
For the reasons discussed in the preamble, HUD amends 24 CFR part
200 as follows:
PART 200--INTRODUCTION TO FHA PROGRAMS
1. The authority citation for part 200 continues to read as
follows:
Authority: 12 U.S.C. 1701-1715z-18; 42 U.S.C. 3535(d).
2. Add subpart G to read as follows:
Subpart G--Appraiser Roster
Sec.
200.200 What is the Appraiser Roster?
200.202 How do I apply for placement on the Appraiser Roster?
200.204 [Reserved]
200.206 What are my responsibilities as an appraiser listed on the
Appraiser Roster?
Subpart G--Appraiser Roster
Sec. 200.200 What is the Appraiser Roster?
(a) Appraiser Roster. HUD maintains a list of appraisers. A
mortgagee must select only an appraiser from this list for the
appraisal of a property that is to be the security for an FHA-insured
single family mortgage.
(b) Disclaimer. Since an appraisal is performed to determine the
maximum insurable mortgage and to also protect the FHA insurance funds,
the inclusion of an appraiser on the Appraiser Roster does not create
or imply a warranty or endorsement to a prospective homebuyer or to any
other organization or individual by HUD of the listed appraiser nor
does it represent a warranty of any appraisal performed by the listed
appraiser. The inclusion of an appraiser on the Appraiser Roster means
only that a listed appraiser has met the qualifications and conditions,
prescribed by the Secretary, for inclusion on the Appraiser Roster.
Sec. 200.202 How do I apply for placement on the Appraiser Roster?
(a) Application. To apply for placement on the Appraiser Roster,
you must submit an application to HUD.
(b) Eligibility. To be eligible for placement on the Appraiser
Roster:
(1) You must be a state-licensed or state-certified appraiser;
(2) You must pass a HUD test on FHA appraisal methods and
reporting; and
(3) You must not be listed on:
(i) The General Service Administration's Suspension and Debarment
List;
(ii) HUD's Limited Denial of Participation List; or
(iii) HUD's Credit Alert Interactive Voice Response System.
Sec. 200.204 [Reserved]
Sec. 200.206 What are my responsibilities as an appraiser listed on
the Appraiser Roster?
All appraisers listed on the Appraiser Roster are responsible for:
(a) Obtaining and reading the HUD Appraiser Handbook (4150.2) and
any updates to the Handbook;
(b) Complying with the HUD Appraiser Handbook (4150.2), and any
updates to the Handbook, when performing all appraisals of properties
for HUD single family mortgage insurance purposes; and
(c) Complying with all other instructions and standards issued by
HUD when performing all appraisals of properties for HUD single family
mortgage insurance purposes.
Dated: December 17, 1999.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 99-33672 Filed 12-27-99; 8:45 am]
BILLING CODE 4210-27-P
