Icr 2502-0422

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 Office of Single-family Housing		2. OMB Control Number: a. 2502-0422	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) X 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 X No 6. Requested expiration date: a. X Three years from approval date b. Other (specify)      

7. Title:

Mortgage Record Change

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

HUD-92080

9. Keywords:

Housing, Mortgage Record Change

10. Abstract:

FHA-approved mortgagees report to HUD the sale of a mortgage between investors, the transfer of the mortgage servicing responsibility, or a change in mortgagors, as appropriate. HUD requires this information to assure accuracy in the fee and premium billing programs under HUD-FHA's automatic data processing system. HUD uses the information to process premium payments and to process claims.

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.   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: 2,600 b. Total annual responses 1,600,250 Percentage of these responses collected electronically 100% Total annual hours requested 160,025 d. Current OMB inventory 280,950 e. Difference (+, -) -120,925 f. Explanation of difference: 1. Program change: 0 2. Adjustment: -120,925		14. Annual reporting and recordkeeping cost burden: (in thousands of dollars) a. Total annualized capital/startup costs b. Total annual costs c. Total annualized cost requested d. Total annual cost requested e. Current OMB inventory 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. X Program planning or management b. P Program evaluation f. X Research c.   General purpose statistics g. X Regulatory or compliance d. X Audit		16. Frequency of recordkeeping or reporting: (check all that apply) a. Recordkeeping b. Third party disclosure b. X Reporting: 1. On occasion 2. Weekly 3. Monthly 4. Quarterly 5. Semi-annually 6. Annually 7. Biannually 8. Other (describe)
17. Statistical methods: Does this information collection employ statistical methods? Yes X No	18. Agency contact: (person who can best answer questions regarding the content of this submission) Name: Silas C. Vaughn, Jr. Phone: (202) 402-3545

19. Certification for Paperwork Reduction Act Submissions

On behalf of this Federal Agency, 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 Michael E. Winiarski, Deputy Director, Organizational Policy, Planning and Analysis Division	Date:
Signature of Senior Officer or Designee: X Lillian L. Deitzer, Departmental Reports Management Officer Office of the Chief Information Officer	Date:

Supporting Statement for Paperwork Reduction Act Submissions

A. Justification

1. Servicing of insured mortgages must be performed by a mortgagee that is approved by HUD to service insured mortgages. Whenever servicing of any mortgage is transferred from one mortgagee or servicer to another, notice of the transfer of service shall be delivered to HUD by the transferee mortgagee or servicer within 15 days of the transfer. Notice is also required when there is a change of mortgagor. Lenders and servicers must notify HUD of changes in servicer and/or mortgagor so that appropriate changes can be made to HUD’s records of insured parties. The authority for this collection of information is specified in 24 CFR 203.431, 24 CFR 203.502, and 24 CFR 207.263.

2. Lenders and servicers must notify HUD of changes in servicer and/or mortgagor for insured loans so that appropriate changes can be made to HUD’s records of insured parties. The Mortgage Record Change information is used by FHA-approved mortgagees to comply with HUD requirements for reporting the sale of a mortgage between investors, the transfer of the mortgage servicing responsibility, or a change in mortgagors, as appropriate. Lenders report mortgage record changes for single family loans through Electronic Data Interchange and via FHA Connection. Lenders report mortgage record changes for multifamily loans using form HUD-92080.

HUD requires this information to assure accuracy in the fee and premium billing programs under HUD-FHA's automatic data processing system. HUD uses the information to process premium payments and to process claims. The information required is used to update HUD’s Insurance System and other related systems. Current data is necessary to establish mortgage premium liability, forward annual premium mortgage data to the appropriate mortgagee/servicer, and maintain premium receivables and program data regarding investors/servicer activity. Without the required data the premium collection/monitoring function would be severely impeded and program data would be unreliable. This information is essential because the data is used to update the insurance system and is used in the accurate billing of monthly premiums as HUD does case level accounting in recording premium payments by mortgagees.

3. The information is collected electronically through Electronic Data Interchange and via FHA Connection for single family loans and on paper (form HUD-92080) for multifamily loans. Last fiscal year approximately 2,600 lenders submitted 1,600,000 transfers electronically through Electronic Data Interchange and FHA Connection. Use of the Electronic Data Interchange and FHA Connection eliminates the completion and submission of hard copy source documents for the submission of transfer information. Due to the small number of mortgage record changes for multifamily loans, conversion to an electronic system is not feasible at this time.

4. No duplicate data exits. The data is not available from other sources.

5. Small businesses or other small entities are not respondents

6. Information is collected whenever servicing of any mortgage is transferred from one mortgage or service to another. Without the required data the premium collection/monitoring function would be severely impeded and program data would be unreliable, resulting in a potential negative impact on the insurance fund.

7. Current guidelines for servicing procedures give the mortgagee 15 days from the date of the sale of a mortgage or the transfer of servicing to provide the required data. Any further delay in providing the data would erode the reliability and effectiveness of the program functions, which depend on timely mortgage activity information.

8. In accordance with 5 CFR 1320.8(d), the agency’s notice soliciting public comments was announced in the Federal Register on June 29. 2007, (Vol. 72, Number 125, page 35715). No comments were received.

9. No gift or payment is provided to respondents.

10. Neither Federal regulations nor agency policy promise confidentiality to the respondents.

11. No questions of a sensitive nature are involved.

12. Estimate of public burden:

Information Collection	Number of Respondents	Frequency of Response	Total Annual Responses	Burden Hours per Response	Total Burden Annual Hours	Hourly Cost	Total Annual Cost
Mortgage Record Change Information for Single Family Loans	2,600	Varies	1,600,000	0.10	160,000	$15	$2,400,000
HUD-92080 for Multifamily Loans	2,600	Varies	250	0.10	25	$15	375
Totals	2,600		1,600,250		160,025		$2,400,375

Hourly rate is based on an estimate of the average annual salary of $31,200 for servicer clerical personnel.

13. There are no additional costs to respondents.

14. An estimate of the annualized cost to the Federal Government is $300,000 including $100,000 for EDI maintenance by a contractor and $200,000 for processing data by 4 FTPs at Grade 9, Step 5.

15. This is an extension of a currently approved collection. The number of respondents has decreased due to consolidations in the mortgage servicing industry. This consolidation results in fewer transfers of servicing, accounting for the decrease in responses, burden hours, and total cost. Cost to the government has not changed due to contracts in place.

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

17. We are not seeking approval to not display the expiration date.

18. There are no exceptions to the certification statement.

B. Collections of Information Employing Statistical Methods

The collection of information does not employ statistical methods.

OMB 83-I 10/95