Icr_2502-0041

Paperwork Reduction Act Submission

Please read the instruction before completing this form. For additional forms or assistance in completing this forms, contact your agency’s Paperwork Reduction Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement, and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 Seventeenth St. NW, Washington, DC 20503.

1. Agency/Subagency Originating Request: U.S. Department of Housing and Urban Development t		2. OMB Control Number: a. 2502-0041	b. None      
3. Type of information collection: (check one) New Collection Revision of a currently approved collection Extension of a currently approved collection Reinstatement, without change, of previously approved collection for which approval has expired Reinstatement, with change, of previously approved collection for which approval has expired Existing collection in use without an OMB control number For b-f, note item A2 of Supporting Statement instructions.	4. Type of review requested: (check one) Regular Emergency - Approval requested by       Delegated 5. Small entities: Will this information collection have a significant economic impact on a substantial number of small entities? Yes No 6. Requested expiration date: a. Three years from approval date b. Other (specify)      

7. Title:

Multifamily Default Status Report

8. Agency form number(s): (if applicable)

HUD 92426

9. Keywords:

Housing, Reporting and Recordkeeping Requirements

10. Abstract:

Mortgagees use this report to notify HUD that a project owner has defaulted on their mortgage and that an assignment of mortgage will result if HUD and the mortgagor do not develop a plan for reinstating the loan.

11. Affected public: (mark primary with “P” and all others that apply with “X”) a.   Individuals or households e.   Farms b. P Business or other for-profit f.   Federal Government c. X Not-for-profit institutions g.   State, Local or Tribal Government		12. Obligation to respond: (mark primary with “P” and all others that apply with “X”) a.   Voluntary b. P Required to obtain or retain benefits c.   Mandatory
13. Annual reporting and recordkeeping hour burden: a. Number of respondents 98 b. Total annual responses 11,368 Percentage of these responses collected electronically 100% c. Total annual hours requested 1894 d. Current OMB inventory 2721 e. Difference (+,-) -827 f. Explanation of difference: 1. Program change:       2. Adjustment: -827		14. Annual reporting and recordkeeping cost burden: (in thousands of dollars) Do not include costs based on the hours in item 13. a. Total annualized capital/startup costs $0.00 b. Total annual costs (O&M) $0.00 c. Total annualized cost requested $0.00 d. Current OMB inventory       e. Difference       f. Explanation of difference: 1. Program change:       2. Adjustment:      
15. Purpose of Information collection: (mark primary with “P” and all others that apply with “X”) a.   Application for benefits e. P Program planning or management b.   Program evaluation f.   Research c.   General purpose statistics g. X Regulatory or compliance d.   Audit		16. Frequency of recordkeeping or reporting: (check all that apply) a. Recordkeeping b. Third party disclosure c. Reporting: 1. On occasion 2. Weekly 3. Monthly 4. Quarterly 5. Semi-annually 6. Annually 7. Biannually 8. Other (describe) Reporting required when default occurs.
17. Statistical methods: Does this information collection employ statistical methods? Yes No	18. Agency contact: (person who can best answer questions regarding the content of this submission) Name: Cindy Bridges Phone: (202) 708-2654, xt. 2603

19. Certification for Paperwork Reduction Act Submissions

On behalf of the U.S. Department of Housing and Urban Development, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9.

Note: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320/8(b)(3). appear at the end of the instructions. The certification is to be made with reference to those regulatory provisions as set forth in the instructions.

The following is a summary of the topics, regarding the proposed collections of information that the certification covers:

1. It is necessary for the proper performance of agency functions;

2. It avoids unnecessary duplication;

3. It reduces burden on small entities;

4. It uses plain, coherent, and unambiguous terminology that is understandable to respondents;

5. Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

6. It indicates the retention periods for recordkeeping requirements;

7. It informs respondents of the information called for under 5 CFR 1320.8(b)(3):

1. Why the information is being collected;

2. Use of the information;

3. Burden estimate;

4. Nature of response (voluntary, required for a benefit, or mandatory);

5. Nature and extent of confidentiality; and

6. Need to display currently valid OMB control number;

8. It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to collected (see note in item 19 of the instructions);

9. It uses effective and efficient statistical survey methodology; and

10. It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item below and explain the reason in item 18 of the Supporting Statement.

     

Signature of Program Official: X Kevin B. Perkins, Director, Organizational Policy, Planning and Analysis Division, HROA

Date:

Supporting Statement for Paperwork Reduction Act Submissions

Multifamily Default Status Report

OMB Number 2502-0041

Form HUD-92426

1. Justification

1. The regulations for all of HUD’s multifamily insurance programs require that mortgagees notify HUD where a mortgage payment is more than 30 days past due. Mortgagees use Form HUD-92426 to provide this notice. Attachment is a copy of the Form HUD-92426, Notice of Default Status on Multifamily Housing Projects (hereinafter called the Default Notice), which is completed and submitted electronically. Also attached are copies the statutory and administrative authorities, which govern the collection of this information.

2. The mortgagee submits the Default Notice to HUD electronically. HUD field and Headquarters staff use this data to: (a) monitor mortgage compliance with HUD loan servicing procedures and assignments; and (b) avoid mortgage assignments. Assignments cost the government millions of dollars each year. If mortgagees did not submit this data: (1) we would not be aware of defaults; (2) the number of assignments would increase; (3) our budget deficit would increase because we would pay billions of dollars of insured claims; and (4) we would not be able to monitor mortgagee compliance with our loan servicing and default prevention requirements.

3. This form will be completed and submitted to HUD via the internet via the Multifamily Delinquency Default Reporting System (MDDR), thereby reducing burden hours. However, in special situations the form HUD-92426 is still used.

4. HUD cannot compile this data from other sources. The data must be supplied by the mortgagee. Other government agencies do not collect this type of information.

5. No small businesses or other small entities are involved in this information collection.

5. Less frequent data collection would conflict with the statute, hamper HUD’s ability to monitor debt collection and increase the potential for assignments, diversions and fraud.

5. Mortgagees must report a delinquency after the 15^th of the month the payment is due if payment has not been made; a default notice must be submitted no later than 60 days following the date of default; and an election to assign a mortgage to the Department must be submitted 75 days from the date of default, unless an extension has been requested and approved, per regulations.

5. Information collection is conducted in a manner consistent with 5 CFR 1320.6 guidelines. This collection was announced in the Federal Register on Wednesday, November 22, 2006, Volume 71, No. 225. We received one comment from Cheryl Malloy of the Mortgage Bankers Association. Ms. Malloy was concerned that HUD was going to revert back to using the form HUD-92426 and no longer use the MDDR system. Response was sent to Ms. Malloy to assure her that MDDR is the mandatory method for reporting delinquencies, however on occasion there are submissions to HUD using the form.

9. There are no payments or gifts to respondents.

9. While no assurances of confidentiality are pledged to respondents, HUD generally does not disclose this data. HUD would disclose this data only in response to a Freedom of Information Act request.

9. There are no sensitive questions.

12.. Annual Burden Estimate (includes recordkeeping):

Information Collection	Number of Respondents	Frequency of Response	Total Annual Responses	Burden Hours per Response	Total Annual Burden Hrs	*Hourly Cost	Total Annual Cost
HUD-92426	98	116	11,368	0.1666	1894	$15.00	$24,410

Mortgagees are required to keep copies of their electronic submission of HUD-92426 to indicate to the Department’s Multifamily Claims Branch upon assignment or foreclosure that the mortgagee followed the proper procedures and timetables in reporting a project’s default, actions taken to cure the default and reinstatement or assignment/foreclosure of the mortgage. In many cases the amount of payment made to a mortgagee has been reduced because the proper timetables may not have been followed. Mortgagees have a recordkeeping burden for every defaulted mortgage.

**Estimated cost per hour is based on the respondent’s staff to gather and submit the requested information.

13. There are no additional capital/startup costs associated with the collection of information.

14. Estimate of Annualized Cost to the Federal Government.

Information Collection	Number of Respondents	Frequency of Response	Total Annual Responses	Burden Hours per Response	Total Annual Burden Hrs	*Hourly Cost	Total Annual Cost
HUD-92426	98	116	11,368	0.1666	1894	$27.00	$51,138

*The hourly cost is based on a GS-12 Project Manager charged with reviewing the information.

15. Adjustment made to accurately reflect the current number of respondents and number of responses based on information available in HUD systems. There was a slight increase in the number of mortgagees using the system to report default information. Respondents will not use the system if they do not have any delinquent/default information to report to the Department.

16.The results of this information will not be published.

17.The OMB expiration date will be displayed on the form.

18. There are no exceptions to the “Certification for Paperwork Reduction Act Submission”.

B. Collections of Information Employing Statistical Methods

There are no statistical methods used in this collection.

OMB 83-I 10/95