[Federal Register Volume 61, Number 171 (Tuesday, September 3, 1996)]
[Rules and Regulations]
[Page 46510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22370]
[[Page 46509]]
_______________________________________________________________________
Part II
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 3500
Real Estate Settlement Procedures Act: Streamlining Regulatory Reform
and Escrow Accounting Procedures; Final Rule and Proposed Rule
Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 /
Rules and Regulations
[[Page 46510]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 3500
[Docket No. FR-4023-F-03]
RIN 2502-AG69
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner; Real Estate Settlement Procedures Act; Streamlining Final
Rule; Correction and Clarification
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Correction to final rule and clarification.
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SUMMARY: On March 26, 1996 (61 FR 13232), the Department published a
final rule streamlining its regulations under the Real Estate
Settlement Procedures Act (RESPA). That rule, when published, left
unchanged references in the rule to ``effective date[s]'' in certain
provisions. HUD's intent was that these references should continue to
refer to the effective date of the escrow accounting procedures rule,
which was May 24, 1995, not to the effective date of the streamlining
rule. By this document, the text of the streamlining rule is corrected
to include expressly the May 24, 1995, effective date in the applicable
provisions.
In addition, this document contains a technical clarification of
the streamlining rule concerning the use of toll-free numbers.
EFFECTIVE DATE: October 8, 1996.
FOR FURTHER INFORMATION CONTACT: David R. Williamson, Director, Office
of Consumer and Regulatory Affairs, Room 5241, Department of Housing
and Urban Development, 451 Seventh Street, SW, Washington, DC 20410,
telephone number (202) 708-4560 (this is not a toll-free number); or
for legal questions: Kenneth A. Markison, Assistant General Counsel for
GSE/RESPA, Grant Mitchell, Senior Attorney for RESPA, or Richard S.
Bennett, Attorney, Room 9262, Department of Housing and Urban
Development, 451 Seventh Street, SW, Washington, DC 20410, telephone
number (202) 708-1550 (this is not a toll-free number). For hearing- or
speech-impaired persons, this number may be accessed via TTY (text
telephone) by calling the Federal Information Relay Service at 1-800-
877-8339.
SUPPLEMENTARY INFORMATION:
Corrections
The March 26, 1996 (61 FR 13232) streamlining rule left unchanged
references in Secs. 3500.17(b) and (c)(4)(i) to the ``effective date of
this rule'', the ``effective date of this final rule'', and ``effective
date of this section''. These references appeared in the definitions of
``phase-in period'', ``post rule account'', and ``pre-rule account''.
HUD is issuing this correction to substitute the May 24, 1995,
effective date of the applicable rule escrow accounting procedures rule
(60 FR 8812, February 15, 1995), for the unclear references in those
provisions.
Technical Clarification
The streamlining rule was first corrected on April 29, 1996 (61 FR
18674). Subsequently, some servicers have noted that the streamlining
rule removed from the Code of Federal Regulations (CFR) a number of
examples of Initial and Annual Escrow Account Statements. Each example
of the statements referenced ``[Servicer's name, address and toll-free
number]'' under the format's title. Some have questioned whether the
removal of these formats from the CFR constitutes a change in the
requirements pertaining to toll-free numbers.
The requirements have not changed. As the preamble to the
streamlining rule makes clear, while the Department removed from
codification several of the appendices that previously accompanied part
3500, these materials have been preserved and are available as Public
Guidance Documents. Because the removal of these formats from
codification did not change any requirements, including those for toll-
free numbers (see, e.g., paragraph 6(b)(3)(B) of RESPA; 12 U.S.C.
2605(b)(3)(B)), HUD does not believe that any change to the rule text
is required to make this clarification.
List of Subjects in 24 CFR Part 3500
Consumer protection, Condominiums, Housing, Mortgages, Mortgage
servicing, Reporting and recordkeeping requirements.
Accordingly, part 3500 of title 24 of the Code of Federal
Regulations is corrected by making the following correcting amendments:
PART 3500--REAL ESTATE SETTLEMENT PROCEDURES ACT
1. The authority citation is revised to read as follows:
Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C. 3535(d).
2. Section 3500.17 is amended:
a. In paragraph (b) by revising the definitions of ``Phase-in
period'', ``Post-rule account'', and ``Pre-rule account''; and
b. In paragraph (c)(4)(i) by revising the last sentence, to read as
follows:
Sec. 3500.17 Escrow Accounts.
* * * * *
(b) * * *
Phase-in period means the period beginning on May 24, 1995, and
ending on the conversion date, i.e., October 27, 1997, by which date
all servicers shall use the aggregate accounting method in conducting
escrow account analyses.
Post-rule account means an escrow account established in connection
with a federally related mortgage loan whose settlement date is on or
after May 24, 1995.
* * * * *
Pre-rule account is an escrow account established in connection
with a federally related mortgage loan whose settlement date is before
May 24, 1995.
* * * * *
(c) * * *
(4) * * *
(i) * * * After May 24, 1995, refinancing transactions (as defined
in Sec. 3500.2) shall comply with the requirements for post-rule
accounts.
* * * * *
Dated: August 27, 1996.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 96-22370 Filed 8-30-96; 8:45 am]
BILLING CODE 4210-27-P
