Notice of Submission of Proposed Information Collection to OMB

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Administration

[Docket No. FR-3950-N-02]

Notice of Submission of Proposed Information Collection to OMB

AGENCY: Office of Administration, HUD.

ACTION: Notice.

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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 and approval by November 20, 1995, as required by

the Paperwork Reduction Act. The Department is soliciting public

comments on the subject proposal.

DATES: The due date for comments is: December 6, 1995.

ADDRESSES: Interested persons are invited to submit comments regarding

this proposal. Comments must be 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., HUD 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, SW, Washington, DC 20410, telephone (202) 708-0050. This is not

a toll-free number. Copies of 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 proposed ``Notice of Application--foreclosure

commissioners,'' [Docket No. FR-3950-N-01]. HUD seeks to implement the

requirement of Section 3754 of the Single Family Mortgage Foreclosure

Act of 1994 (the Act), 12 USC 3751 et seq., which requires that single

family foreclosure commissioners designated by HUD be ``responsible,

financially sound, and competent to conduct a foreclosure.

The Act creates for the Secretary of HUD a non-judicial power of

sale with respect to HUD-held mortgages and loans originated under

Titles I and II of the National Housing Act, and with respect to loans

originated under Section 312 of the Housing Act of 1964. The Act will

thus allow HUD to complete foreclosures of such mortgages in about two

months, rather than the longer periods--up to two years--obtaining

under the laws of the various States, particularly those using a

judicial process to foreclose. The longer periods result in substantial

unnecessary costs (for management, vandalism, taxes, etc.) to the FHA

mortgage insurance funds and, by extension, to the taxpayers. Thus,

implementation of the Act, including designation of foreclosure

commissioners, will lead to substantial savings to the Department.

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):

(1) Title of the information collection proposal:

Notice of Application for Designation as Single Family Foreclosure

Commissioner

(2) Summary of the collection of information:

Each party seeking designation as a foreclosure commissioner would

be

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required to submit current information, as listed below:

1. Name

2. Business Address

3. Geographic area in which the applicant wishes to conduct

foreclosures. (List only States or areas in States in which the

applicant is a resident or is duly authorized to transact business.)

4. If the applicant is not a natural person, the names and business

addresses of the people who would actually perform the commissioner's

duties.

5. Description of the applicant's experience in conducting mortgage

foreclosures or in related activities which would qualify the applicant

to serve as a foreclosure commissioner.

6. Evidence of the applicant's financial responsibility.

In place of the above information, any party that has been

designated as a foreclosure commissioner for HUD-held multifamily

mortgages would be permitted to submit a letter requesting designation

as a foreclosure commissioner for single family mortgages.

(3) description of the need for the information and its proposed

use:

The requested information is needed for HUD's selection of

foreclosure commissioners who will satisfy the statutory requirements

to be ``responsible, financially sound, and competent to conduct a

foreclosure.'' The Department is not providing any assurances of

confidentiality.

Under the Act, HUD will be able to foreclose on HUD-held Single

Family mortgages in about two months instead of the much longer

periods--ranging up to two years--currently required under many State

laws. The current long periods lead to increased holding costs and

vandalism on the properties securing the loans. HUD holds thousands of

loans that are ripe for foreclosure.

In view of the substantial economies to be provided by the Act,

emergency approval is requested in order to appoint commissioners as

soon as the Rule is in effect rather than waiting until the routine

clearance process could be completed.

(4) description of the likely respondents, including the estimated

number of likely respondents, and proposed frequency of response to the

collection of information:

Respondents will be entities with experience in real estate

foreclosure procedures. Over a three year period, the estimated number

of respondents is approximately 250 in the first year and 50 each year

thereafter. The estimated frequency of responses over a three year

period is once per HUD region, with very few respondents expected to

apply to more than one HUD region.

(5) estimate of the total reporting and recordkeeping burden that

will result from the collection of information:

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Each

Reporting burden First year following

year

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Number of respondents.................... 250 50

Total burden hours (@ 0.5 hour per

response)............................... 125 25

Total Estimated Burden Hours......... 175 (3 years)

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Authority: Section 3507 of the Paperwork Reduction Act of 1995,

44 U.S.C. Chapter 35, as amended.

Dated: November 7, 1995.

David S. Cristy,

Director, IRM Policy and Management Division.

[FR Doc. 95-29093 Filed 11-28-95; 8:45 am]

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