[Federal Register Volume 61, Number 156 (Monday, August 12, 1996)]
[Notices]
[Pages 41946-41947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20172]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-3638-N-05]
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner; Submission for OMB Review; Comment Request
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Notice of proposed information collection.
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SUMMARY: The proposed information collection requirement described
below has been submitted to the Office of Management and Budget (OMB)
for emergency review, as required by the Paperwork Reduction Act. The
Department is soliciting public comments on the subject proposal. By
separate notice in today's Federal Register, the Department is also
soliciting comment for 60 days on a portion of the information
collection requirements covered by this emergency review notice.
DATES: The due date for comments is: August 19, 1996.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposal. Comments must be
[[Page 41947]]
received within seven (7) days from the date of this Notice. Comments
should refer to the proposal by name and should be sent to: Joseph F.
Lackey, Jr., OMB Desk Officer, Office of Management and Budget, New
Executive Office Building, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT:
Kay F. Weaver, Reports Management Officer, Department of Housing and
Urban Development, 451 Seventh Street, SE, Washington, DC 20410,
telephone (202) 708-0050 (this is not a toll-free number). For hearing-
and speech- impaired persons, this number may be accessed via TTY (text
telephone) by calling the Federal Information Relay Service at 1-800-
877-8339. Copies of the proposed forms and other available documents
submitted to OMB may be obtained from Ms. Weaver.
SUPPLEMENTARY INFORMATION: This Notice informs the public that the
Department of Housing and Urban Development (HUD) has submitted to OMB,
for emergency processing, an information collection package with
respect to a disclosure required for controlled business arrangements
between affiliated settlement service providers. HUD seeks to implement
this initiative as soon as possible. We are requesting that OMB approve
this Information Collection Package by August 12, 1996. By two separate
documents in today's Federal Register, the Department, simultaneously
with this notice: (1) is publishing a correction for a rule that was
published on June 7, 1996 (61 FR 29238) (``June 7 rule''), and
contained erroneous information about the approval status of these
information collections; and (2) is soliciting comment for the regular
60-day review period on a portion of the information collection
requirements (which were included in the June 7 rule) covered by this
notice. Regulatory provisions implementing the statutory requirement
for a disclosure under covered circumstances (see 12 U.S.C. 2607(c)(4))
are currently codified in 24 CFR 3500.15(b) and have been revised by
the June 7 rule (effective October 7, 1996). Although the revisions in
the June 7 rule will make small changes in the format provided for the
controlled business disclosure, these revisions are not expected to
affect the burden attributed to information collection requirements in
the current regulations. Therefore, this notice is for the purpose of
soliciting comment on the controlled business disclosure requirements
under both the current regulations and the regulations as they will be
amended on the effective date of the June 7 rule.
In order for borrowers who seek federally related mortgage loans
(including purchase money, refinances, assumptions, property
improvement, lines of credit, etc.) to be better-informed shoppers, a
settlement service provider, or employee thereof, is required to give
the borrower a certain disclosure when the borrower is being referred
to an affiliated settlement service provider. This controlled business
disclosure alerts the borrower that the referral may be based on a
business arrangement between the two providers, rather than on the best
rate or best service. Section 8(c)(4) of the Real Estate Settlement
Procedures Act (RESPA) (12 U.S.C. 2607(c)(4)), as well as the
implementing regulations at 24 CFR 3500.15, require that borrowers
receive this notice.
The Department has submitted the proposal for the collection of
information, as described below, to OMB for review, as required by the
Paperwork Reduction Act (44 U.S.C. Chapter 35): Notice of Submission of
Proposed Information Collection to OMB
Proposal: Controlled Business Arrangement Disclosure (CBA
disclosure) under 24 CFR 3500.15.
Office: Office of Housing-Federal Housing Commissioner.
Description of the Need for the Information and its Proposed Use: A
settlement service provider or an employee of a settlement service
provider is required to give the borrower a CBA disclosure prior to or
at the time the borrower is referred to an affiliated provider. The CBA
disclosure must be a separate piece of paper and the format must
contain the following information.
1. Specify the nature of the relationship (explaining the ownership
and financial interest) between the person performing the settlement
service and the person making the referral.
2. Describe the estimated charges or range of charges generally
made by the provider of settlement services.
3. State that the borrower is not required to use the referred
provider (except for certain circumstances).
Form Numbers: None.
Respondents: Respondents will be settlement service providers, or
employees thereof, who refer borrowers to other affiliated providers.
The estimated number of respondents is 10,000. The disclosure is
required to be given each time a settlement service provider refers the
borrower to an affiliated service provider. This specifically includes
each time an employee who does not perform settlement services refers
business to an affiliate.
Frequency of Submission: The third party disclosure is required
whenever a borrower is referred to an affiliated provider.
Reporting Burden: (Although the revisions in the June 7 rule will
make small changes in the format provided for the controlled business
disclosure, these revisions are not expected to affect the burden
attributed to information collection requirements in the current
regulations.)
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Number of Frequency of Hours per
respondents x response x response = Burden hours
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10,000....... 2.4 mill. 0.10 240,000
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Total Estimated Burden Hours: 240,000.
Status: New approval.
Authority: 44 U.S.C. 3507; 42 U.S.C. 3535(d).
Dated: August 1, 1996.
David S. Cristy,
Director, IRM Policy and Management Division.
[FR Doc. 96-20172 Filed 8-9-96; 8:45 am]
BILLING CODE 4210-27-M
