Icr 2502-0189

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 Assistant Secretary for Housing - Federal Housing Commissioner Single Family Program Development		2. OMB Control Number: a.2502-0189	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 form approval date b. Other (specify)      

7. Title:

Compliance Inspection Report - HUD-92051

Mortgagee’s Assurance of Completion - HUD-92300     

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

HUD-92051 and HUD-92300     

9. Keywords:

Housing, mortgage insurance programs, construction, housing inspection, property compliance

10. Abstract:

The Compliance Inspection Report (HUD-92051) is used by staff and private inspectors and appraisers. The Mortgagee’s Assurance of Completion (HUD-92300) is used by mortgage companies for establishing escrow for incomplete repairs or construction. HUD staff review and approve these forms and use them in monitoring and training.

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: a. Number of respondents 37,440 b. Total annual responses 623,060 Percentage of these responses collected electronically 0 c. Total annual hours requested 154,667 d. Current OMB inventory 191,400 e. Difference (+,-) -36,733 f. Explanation of difference: 1. Program change 2. Adjustment: -36,733	14. Annual reporting and recordkeeping cost burden: (in thousands of dollars) a. Total annualized capital/startup costs b. Total annual costs (O&M) 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. P Application for benefits e.   Program planning or management b. X 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. x Recordkeeping b. Third party disclosure b. x Reporting: 1. x 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 Name:  Maynard Curry     can best answer questions regarding the content of this submission) Phone: 202-402-2216

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 record keeping practices;

6. It indicates the retention periods for record keeping 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, HROA	Date:
Signature of Senior Officer or Designee: X Lillian Deitzer, Departmental Reports Management Officer Office of Investment Strategies, Policy, and Management, Office of the Chief Information Officer	Date:

Supporting Statement for Paperwork Reduction Act Submissions

Compliance Inspection Report - HUD-92051

Mortgagee’s Assurance of Completion - HUD-92300

(2502-0189)

A. Justification

1. This request for OMB review seeks to extend the current approval of information collection 2502-0189. Section 2(a) of the National Housing Act (P.L. 479, 48 Stat. 1246, 12 U.S.C., 1701 et seq.) authorizes the Secretary of the Department of Housing and Urban Development to insure qualified financial institutions against losses involved in mortgage insurance. This information collection is needed to ensure newly built homes financed with FHA mortgage insurance are constructed in accordance with acceptable building standards and that deficiencies found in newly constructed and existing dwellings are corrected.

2. With regard to existing construction cases, the property appraiser requires the repair of physical defects to assure that the property is livable, durable, and safe for habitation. These repair requirements are made conditions of the conditional commitment and must be cleared by a final inspection before mortgage insurance endorsement. Form HUD-92051 is used in this inspection process. Section 203(b)(7) of the National Housing Act authorizes the Secretary to use his/her discretion with respect to handling repairs. Form HUD-92501 is also used for the inspection of proposed construction cases. HUD requires three inspections to assure compliance with the conditions of the conditional commitment. A clear final inspection must be obtained on all proposed construction cases. HUD will accept local government inspections in jurisdictions that issue building permits prior to inspections and Certificates of Occupancy (or equivalents) in lieu of the three inspections performed by fee inspectors. It is estimated that approximately 80 percent of the proposed cases are now insured under the local government provision.

Form HUD-92051 (Compliance Inspection Report) is the document on which the property inspector or appraiser prepares his/her findings. The form provides categories for the inspector or appraiser to report the status of repair requirements on existing or proposed construction cases. This report becomes a part of the case file and a copy is provided to the lender. Section IV form HUD-92051 indicates three categories of designations that HUD will assign as a result of the inspection. Category B, Compliance Incomplete Items, specifies that a “Mortgagee’s Assurance of Completion” may be submitted. The Form HUD-92300 when completed by the mortgagee assures the Commissioner that the items set forth in the inspection report will be completed by the required date.     

3. HUD employs a number of alternative procedures, such as mortgage certifications, to expedite various aspects of the mortgage insurance processing activities. However, field inspections must be made of all serious defects. There exists no other feasible method to protect the Department from risk. The failure to inspect repair work on existing and proposed construction would create considerable problems for the Department (by increasing risk) and for the home buying public (by affecting the quality of housing).

The information requested from the inspector or appraiser is the only means of obtaining a written report that consistently provides the HUD reviewer with the necessary facts and evidence of compliance with HUD requirements. Automation of the collection isn’t feasible because of the actual need to visit the property to determine any deficiencies. Also, multiple copies of the forms must be distributed; and an original must be maintained for the term of the mortgage.

4. Because of uniqueness of each case, information gathered or applicable to another property or properties cannot be used. No duplication was found to exist.

5. A number of fee inspectors and appraisers operate as small businesses. However, due to the very limited amount of time involved in the information collection, the impact on small business is deemed minimal. 

6. In the past, HUD staff performed all inspections and obtained the assurance of completion necessary for insurance endorsement. More recently, fee inspectors and appraisers selected by lenders perform these services. There are approximately 1,220 fee inspectors and 35,000 appraisers participating in FHA’s programs. No financial relationship exists between these individuals and HUD. The mortgagees make payments for services rendered. Inspections are preformed only once for each HUD insured mortgage. If this collection was conducted any less frequent than it currently is it would cause a deficiency in the process that HUD utilizes for property inspection and buyer assurance.

7. No special circumstances are noted that would cause an information collection to be conducted in an unusual manner that would require respondents to prepare and submit a written response in less than 30 days after receipt of the information obtained on the forms. Both forms are directly related to the processing of mortgages for homes that require FHA mortgage insurance. Therefore, both fee inspectors and mortgage lenders are very likely to complete the forms within 30 days to minimize any delay in processing.

8. The agency notice soliciting comments on the information collection was published in the Federal Register on October 4, 2007, (Volume 72, Number 192, Page 56784). There were no comments.

9. No financial relationships exist between the private inspectors serving on fee panels who prepare the HUD-90251s and HUD. The mortgagees make payments for services rendered.

10. No assurance of confidentiality is provided to respondents.

11. This information collection does not contain any questions of a sensitive nature or other matters that are commonly deemed private.    

12. Tabulation of Reporting Burden

Information Collection	Number of Respondents	Frequency of Response	Total Annual Responses	Hours per Response	Total Annual Hours	Cost Per Hour	Total Annual Cost
HUD-92051	36,220	17	615,740	.25	153,935	$100.00	$15,393,500
HUD-92300	1,220	6	7,320	.10	732	$100.00	73,200
TOTALS	37,440		623,060		154,667		$15,466,700

* Inspectors charge between $75.00 and $125.00 per inspection. It is estimated that an inspection takes approximately one hour in most urban areas, including travel time to and from the site. It takes approximately 15 minutes to complete the HUD 92051. The total annual cost to respondents includes salaries, overhead, staff support, record keeping, etc.

13. There are no additional costs to respondents. Total capital and start-up costs are presumed to be zero.

14. The cost to the Federal Government is based on a $40 per hour estimate, which includes overhead, staff preparation time, review time, etc. The estimate is based on the work being performed by a GS-12 valuation staff person. This cost involves the time it takes to review the submitted forms HUD-92051 and HUD-92300, and complete the approvals. It is estimated that this burden is 10 percent of the estimated burden for the respondents or 15,467 hours. Therefore, cost to the Federal Government is estimated to be $618,680 (15,467 x $40).

15. This is a request for an extension of a currently approved information collection. The adjustment is because of a correction in the number of the respondents.

16. There are no plans to publish the results of the information collected.

17. HUD is not seeking approval to avoid displaying the expiration date of the OMB approval.

18. There are no exceptions of the certification statement identified in item 19 of the OMB 83-I.

B. Collections of Information Employing Statistical Methods

 Not applicable. The collection of information does not employ statistical methods.    

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OMB 83-I 10/95