# Loan Guaranty: Elimination of Redundant Regulations > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2010-14156 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** June 15, 2010 - **Citation:** 75 FR 33704 ## Text 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 --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2010-14156. Public record. Not legal advice.