[Federal Register Volume 61, Number 156 (Monday, August 12, 1996)]
[Rules and Regulations]
[Pages 41944-41945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20169]
[[Page 41943]]
_______________________________________________________________________
Part VII
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 350
_______________________________________________________________________
Office of the Assistant Secretary for Housing--Federal Housing
Commission; Amendments to Regulation X, the Real Estate Settlement
Procedures Act: Withdrawal of Employer-Employee and Computer Loan
Origination Systems (CLOs) Exemptions; Correction and Technical
Revision; Final Rule and Submission for OMB Review; Comment Request;
Notice
Federal Register / Vol. 61, No. 156 / Monday, August 12, 1996 / Rules
and Regulations
=======================================================================
-----------------------------------------------------------------------
[[Page 41944]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 3500
[Docket No. FR-3638-F-04]
RIN 2502-AG26
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner; Amendments to Regulation X, the Real Estate Settlement
Procedures Act: Withdrawal of Employer-Employee and Computer Loan
Origination Systems (CLOs) Exemptions; Correction and Technical
Revision
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Correction and revision of final rule.
-----------------------------------------------------------------------
SUMMARY: This document amends a final rule that was published on June
7, 1996 (61 FR 29238) by correcting the preamble and revising Appendix
D, Controlled Business Arrangement Disclosure Statement Format. The
rule primarily affects the requirements applicable to controlled
business arrangements and computer loan origination systems in the
Department's regulations implementing the Real Estate Settlement
Procedures Act. The correction in this document and two notices
published elsewhere in today's Federal Register relate to the Paperwork
Reduction Act Statement that appears in the rule. The revision of
Appendix D reorganizes the disclosure format for better clarity.
EFFECTIVE DATE: October 7, 1996.
FOR FURTHER INFORMATION CONTACT: David Williamson, Director, Office of
Consumer and Regulatory Affairs, Room 5241, telephone (202) 708-4560,
or for legal questions about the appendix, Richard Bennett, Attorney,
Office of General Counsel, Room 9262, telephone (202) 708-3137. (The
telephone numbers are not toll-free.) For hearing- and speech-impaired
persons, these numbers may be accessed via TTY (text telephone) by
calling the Federal Information Relay Service at 1-800-877-8339. The
address for the above-listed persons is: Department of Housing and
Urban Development, 451 Seventh Street, SW, Washington, DC 20410.
SUPPLEMENTARY INFORMATION:
Background
In the preamble of the rule published on June 7, 1996 (61 FR 29238)
(June 7 rule), the Department stated an incorrect OMB control number
for the information collection requirements regarding controlled
business arrangements (see 24 CFR 3500.15). The correction in this
document, and two notices published elsewhere in today's Federal
Register, relate to the Paperwork Reduction Act Statement that appears
in the rule.
In addition, Appendix D (Controlled Business Arrangement Disclosure
Statement Format) in the rule contained instructions to the preparer
that could create confusion. Therefore, HUD is making technical
revisions to the format and instructions, to make it more clear how the
format is to be completed.
Correction and Technical Revision
Accordingly, FR Doc. 96-14329, Amendments to Regulation X, the Real
Estate Settlement Procedures Act: Withdrawal of Employer-Employee and
Computer Loan Origination Systems (CLOs) Exemptions, published on June
7, 1996 (61 FR 29238), is corrected and amended as follows:
(1) In the preamble on page 29238, in the second column, under the
heading ``Paperwork Reduction Act Statement'', by correctly revising
the first paragraph to read as follows:
The information collection requirements contained in Sec. 3500.15
of this rule have been submitted to the Office of Management and Budget
(OMB) for review in accordance with the Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520). Additional information on this submission can be
found in two notices published on August 12, 1996. 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.
(2) On page 29254, Appendix D to Part 3500 is correctly revised to
read as follows:
Appendix D to Part 3500
Controlled Business Arrangement Disclosure Statement Format; Notice
To:--------------------------------------------------------------------
From:------------------------------------------------------------------
(Entity Making Statement)
Property:--------------------------------------------------------------
Date:------------------------------------------------------------------
This is to give you notice that [referring party] has a business
relationship with [settlement services provider(s) . [Describe the
nature of the relationship between the referring party and the
provider(s), including percentage of ownership interest, if
applicable.] Because of this relationship, this referral may provide
[referring party] a financial or other benefit.
[A.] Set forth below is the estimated charge or range of charges
for the settlement services listed. You are NOT required to use the
listed provider(s) as a condition for [settlement of your loan on] [or]
[purchase, sale, or refinance of] the subject property. THERE ARE
FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR
SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE
RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
------------------------------------------------------------------------
Provider and settlement service Charge or range of charges
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
[B.] Set forth below is the estimated charge or range of charges
for the settlement services of an attorney, credit reporting agency, or
real estate appraiser that we, as your lender, will require you to use,
as a condition of your loan on this property, to represent our
interests in the transaction.
------------------------------------------------------------------------
Provider and settlement service Charge or range of charges
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Acknowledgment
I/we have read this disclosure form, and understand that [referring
party] is referring me/us to purchase the above-described settlement
service(s) and may receive a financial or other benefit as the result
of this referral.
----------------------------------------------------------------------
Signature
[INSTRUCTIONS TO PREPARER:] [Use paragraph A for referrals other than
those by a lender to an attorney, a credit reporting agency, or a real
estate appraiser that a lender is requiring a borrower to use to
represent the lender's interests in the transaction. Use paragraph B
for those referrals to an attorney, credit reporting agency, or real
estate appraiser that a lender is requiring a borrower to use to
represent the lender's interests in the transaction. When applicable,
use both paragraphs. Specific timing rules for delivery of the
controlled business disclosure statement are set forth in 24 CFR
3500.15(b)(1) of Regulation X. These INSTRUCTIONS
[[Page 41945]]
TO PREPARER should not appear on the statement.]
Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C. 3535(d).
Dated: August 1, 1996.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 96-20169 Filed 8-9-96; 8:45 am]
BILLING CODE 4210-27-P
