Icr 2502-0536 1_22

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 Finance and Budget, Single Family Insurance Operations Branch		2. OMB Control Number: a. 2502-0536	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. 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:

Single Family Premium Collection Subsystem-Periodic (SFPCS-P)

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

None

9. Keywords:

Housing, Mortgage, Loan Programs, Single Family Mortgage Insurance

10. Abstract:

The SFPCS-P is used to collect monthly mortgage insurance premiums (MIP) from mortgagees. The Credit Reform Act of 1990 requires FHA to report case level mortgage insurance payment information for each endorsement. In addition, 24 CFR 203.264 requires mortgagees to pay monthly MIP’s, and 24 CFR 203.269 requires that the MIP’s be remitted electronically.

11. Affected public: (mark primary with “P” and all others that apply with “X”) a.   Individuals or households e.   Farms b. x 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 1,200 b. Total annual responses 14,400 Percentage of these responses collected electronically 100% c. Total annual hours requested 2,160 d. Current OMB inventory 5,670 e. Difference (+,-) -3,510 f. Explanation of difference: 1. Program change: -3,510 2. Adjustment:		14. Annual reporting and recordkeeping cost burden: (in thousands of dollars) a. Total annualized capital/startup costs 0 b. Total annual costs (O&M) 0 c. Total annualized cost requested 0 d. Total annual cost requested 0 e. Current OMB inventory 0 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. x Program planning or management b.   Program evaluation f. x Research c .x 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 b. 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 No	18. Agency contact: (person who can best answer questions regarding the content of this submission) Name: Henry Hodges Phone: 202-708-0614 - 2833

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 Kevin B. Perkins, Director, Organizational Policy, Planning and Analysis Division, HROA	Date:
Signature of Senior Officer or Designee: X Wayne Eddins, 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

Single Family Premium Collection Subsystem-Periodic (SFPCS-P)

OMB Control Number 2502-0536

Justification:

1. The Credit Reform Act of 1990 requires FHA to report case level mortgage insurance premium payment information for each endorsement beginning with FY 1991. Section 24 CFR 203.264 requires mortgagees to pay the periodic mortgage insurance premium (MIP) that is due for insured mortgages on or before the tenth day of each month. Section 24 CFR203.269 allows the Commissioner to require that the MIP be remitted electronically.

2. FHA lenders provide the subject information to facilitate electronic transmission of periodic payments of MIP via the Automated Clearing House (ACH) system. Pay.gov processes payments electronically (electronic funds transfer or EFT) through the Automated Clearing House (ACH) using a checking account debit. The Federal Reserve Bank of Cleveland, which maintains the Pay.gov system, is used for the ACH debit. Pay.gov is managed by the Financial Management Service bureau of the U.S. Department of the Treasury

Case level detail of all MIP payments is submitted when the MIP is paid. The mortgagee pays each MIP in twelve equal monthly installments. Each monthly installment is due to the FHA Commissioner no later than the tenth day of each month, beginning in the month in which the mortgagor is required to make the first monthly mortgage payment.

3. All information is submitted electronically via the Automated Clearing House (ACH). Copies of screen shots are attached.

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

5. The collection of this information does not impact on small businesses or other small entities.

6. If the detailed MIP collection data is not gathered, FHA will not be in compliance with the Credit Reform Act and proper funds transmission cannot be accomplished.

7. The following special circumstance causes this information to be collected more often than quarterly. Mortgagees are required to submit MIP data on a monthly basis when they make their payments through ACH to comply with the Credit Reform Act. The monthly payments are required in order to prevent fraud, waste, and mismanagement of FHA funds.

8. In accordance with the requirements of 5 CFR 1320.8(d), the Notice soliciting comments on this collection of information was published in the Federal Register on November 4, 2008. No comments were received.

HUD has received feedback from the mortgagees, service bureaus, and the Mortgage Banker’s Association (MBA) that do business with us concerning this requirement. Information about the system has been given at MBA meetings, lender conferences, and through the Internet. Comments were favorable.

9. There are no gifts or any payments to respondents.

10. Confidentiality is not an issue for the data involved.

11. There are no sensitive questions involved in this collection.

12. Respondent Estimated Burden:

Number of respondents varies depending upon lenders holding mortgages requiring periodic insurance premium payments. The number of mortgages is continuously in flux. Participating lenders hold a widely varied number of mortgages; some hold only a few, and some hold well over a million. There was a merger of two collecting systems for two insurance programs, which resulted in a considerable drop in the number of respondents.

All periodic (monthly) mortgage insurance premium payments are sent electronically to HUD, either through the Internet using the FHA Connection or through CPU to CPU batch file transmissions, and processed using Pay.gov, a secure government-wide collection portal managed by the Financial Management Service bureau of the U.S. Department of the Treasury. Pay.gov processes a payment electronically (electronic funds transfer or EFT) through the Automated Clearing House (ACH) using a checking account debit.

.

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Per Response	Annual Burden Hours	Hourly Cost Per Response	Annual Cost
MIP’s	1,200	12	14,400	.15	2,160	$15.00	$32,400

Hourly rate is based on an estimate of the annual salary of lender clerical staff at $31,200

13. There are no other costs to the respondents.

14. Federal Government Costs: None. ATSC is now providing on-going support of the A80B Pay.gov operations at no additional cost. Treasury estimated we saved them $4 million annually

15. This is an extension of a currently approved collection. The burden estimate has been recalculated and corrected to better represent information processing conditions. Information on the number of respondents and responses is based on actual HUD data for the past year. Since the last submission, there was a merger of two collecting systems for two insurance programs, which resulted in a considerable drop in the number of respondents.

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

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

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

B. Collections of Information Employing Statistical Methods:

The collection of this information does not employ statistical methods.

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OMB 83-I 10/95