Loan Guaranty: Elimination of Redundant Regulations

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 36

RIN 2900-AN71

Loan Guaranty: Elimination of Redundant Regulations

AGENCY:

Department of Veterans Affairs.

ACTION:

Final rule.

SUMMARY:

This document eliminates redundant and obsolete provisions in the Department of Veterans Affairs (VA) loan guaranty regulations. The provisions being removed are no longer necessary because the phase-in of VA's new loan administration rules is complete.

DATES:

Effective Date:

June 15, 2010.

FOR FURTHER INFORMATION CONTACT:

Katherine Faliski, Assistant Director for Loan Processing and Valuation (262), Veterans Benefits Administration, Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, telephone (202) 461-9527. (This is not a toll-free telephone number.)

SUPPLEMENTARY INFORMATION:

On February 18, 2005 (70 FR 8472), VA proposed to amend its loan guaranty regulations to implement new program requirements for the mortgage servicing industry. The notice of proposed rulemaking was followed by publication of a supplemental notice regarding the computer system for the new requirements (71 FR 68498, Nov. 27, 2006) and a second supplemental notice regarding VA's proposal for phasing-in the requirements (72 FR 30505, June 1, 2007). The second supplemental notice stated: “When all industry segments have been brought on-line, VA will remove current §§ 36.4300 through 36.4393, and redesignate the new 4800 series to replace current §§ 36.4300 through 36.4393. At that time, all program participants would be subject to the new rules.”

On February 1, 2008 (73 FR 6294), VA published a final rule amending 38 CFR part 36 to implement the new program requirements. VA temporarily designated then-existing provisions found at 38 CFR 36.4300 through 36.4393 (the “36.4300 series”) as a new subpart B and established a new subpart F to include new §§ 36.4800 through 36.4893 (the “36.4800 series”). The 36.4800 series replicated most aspects of the VA Loan Guaranty Program set forth in the 36.4300 series, but also included changes related to the servicing and liquidating of guaranteed housing loans in default, and the submission of guaranty claims by loan holders.

VA implemented the phase-in of the subpart F provisions over a period of 11 months and completed the process during the 2nd quarter of FY 2009, following which the 36.4300 series became redundant and obsolete. Rather than eliminating subpart B altogether, however, we are redesignating the 36.4800 series to replace the 36.4300 series in its entirety. This action is necessary because most program participants are accustomed to referring to the 36.4300 series for regulations pertaining to the VA Loan Guaranty Program.

Administrative Procedure Act

This final rule deletes only redundant or obsolete provisions. It also redesignates current regulations without making any substantive changes. Accordingly, it is exempt from the prior notice-and-comment and delayed-effective-date requirements of 5 U.S.C. 553.

Executive Order 12866

Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity). The Executive Order classifies a “significant regulatory action,” requiring review by the Office of Management and Budget (OMB) unless OMB waives such review, as any regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order.

The economic, interagency, budgetary, legal, and policy implications of this rule have been examined, and it has been determined not to be a significant regulatory action under Executive Order 12866.

Unfunded Mandates

The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any given year. This rule will have no such effect on State, local, and tribal governments, or on the private sector.

Paperwork Reduction Act of 1995

This document contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521).

Regulatory Flexibility Act

The initial and final regulatory flexibility analysis requirements of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 601-612, are not applicable to this rule because a notice of proposed rulemaking is not required. Even so, the Secretary hereby certifies that this regulatory amendment will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act. This amendment will not directly affect any small entities. Therefore, this amendment is also exempt pursuant to 5 U.S.C. 605(b) from the initial and final regulatory flexibility analysis requirements of sections 603-604.

Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance Program number and title for the program affected by this document are 64.114, Veterans Housing—Guaranteed and Insured Loans.

Signing Authority

The Secretary of Veterans Affairs, or designee, approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. John R. Gingrich, Chief of Staff, Department of Veterans Affairs, approved this document on June 4, 2010 for publication.

List of Subjects in 38 CFR Part 36

Condominiums, Handicapped, Housing, Indians, Individuals with disabilities, Loan programs—housing and community development, Loan programs—Indians, Loan programs—veterans, Manufactured homes, Mortgage insurance, Reporting and recordkeeping requirements, Veterans.

Dated: June 9, 2010.

Robert C. McFetridge,

Director of Regulation Policy and Management, Office of the General Counsel.

For the reasons stated in the preamble, VA amends 38 CFR part 36 as follows:

PART 36—LOAN GUARANTY

1. The authority citation for part 36 continues to read as follows:

Authority:

38 U.S.C. 501 and as otherwise noted.

Subpart B—[Removed]

2. Remove subpart B.

Subpart F—[Redesignated as Subpart B]

3. Redesignate subpart F as new subpart B.

§§ 36.4800 through 36.4893

[Redesignated as §§ 36.4300 through 36.4393]

4. Redesignate §§ 36.4800 through 36.4893 as follows:

Old section

New section

36.4800

36.4300

36.4801

36.4301

36.4802

36.4302

36.4803

36.4303

36.4804

36.4304

36.4805

36.4305

36.4806

36.4306

36.4807

36.4307

36.4808

36.4308

36.4809

36.4309

36.4810

36.4310

36.4811

36.4311

36.4812

36.4312

36.4813

36.4313

36.4814

36.4314

36.4815

36.4315

36.4816

36.4316

36.4817

36.4317

36.4818

36.4318

36.4819

36.4319

36.4820

36.4320

36.4821

36.4321

36.4822

36.4322

36.4823

36.4323

36.4824

36.4324

36.4825

36.4325

36.4826

36.4326

36.4827

36.4327

36.4828

36.4328

36.4829

36.4329

36.4830

36.4330

36.4831

36.4331

36.4832

36.4332

36.4833

36.4333

36.4835

36.4335

36.4836 [Reserved]

36.4336 [Reserved]

36.4837

36.4337

36.4838

36.4338

36.4839

36.4339

36.4840

36.4340

36.4841

36.4341

36.4842

36.4342

36.4843

36.4343

36.4845

36.4345

36.4846

36.4346

36.4847

36.4347

36.4848

36.4348

36.4849

36.4349

36.4850

36.4350

36.4851

36.4351

36.4852

36.4352

36.4853

36.4353

36.4854

36.4354

36.4855

36.4355

36.4856

36.4356

36.4857

36.4357

36.4858 [Reserved]

36.4358 [Reserved]

36.4859

36.4359

36.4860

36.4360

36.4861

36.4361

36.4862

36.4362

36.4863

36.4363

36.4864

36.4364

36.4865

36.4365

36.4867

36.4367

36.4868

36.4368

36.4869

36.4369

36.4870

36.4370

36.4875

36.4375

36.4877

36.4377

36.4878

36.4378

36.4879

36.4379

36.4880

36.4380

36.4890

36.4390

36.4891

36.4391

36.4892

36.4392

36.4893

36.4393

[FR Doc. 2010-14156 Filed 6-14-10; 8:45 am]

BILLING CODE P