2900-0377 justification

SUPPORTING STATEMENT FOR VA FORM 26-8084,

CLAIM FOR REPURCHASE OF LOAN

(2900-0377)

A. JUSTIFICATION

1. The holder of a vendee account which has been guaranteed by the Department of Veterans Affairs (VA) may request VA to repurchase a loan as provided in 38 CFR 36.4600(d). Also see 38 U.S.C. 3733(a).

2. Under 38 CFR 36.4600(d), the holder of a delinquent vendee account is legally entitled to repurchase of the loan by VA when the loan has been continuously in default for 3 months and the amount of the delinquency equals or exceeds the sum of 2 monthly installments. When requesting the repurchase of a loan, the holder uses VA Form 26-8084. Upon receipt of a holder's VA Form 26-8084, the supporting documents are examined to see that all of the documents required have been submitted and that they are sufficient to complete the repurchase. VA Form 26-8084 is compared with the settlement sheet prepared when the loan was sold and examined closely to establish that there are no errors in the holder's methods of computation. Following repurchase by VA, the obligor(s) are notified in writing that VA has repurchased the loan, and the vendee account is serviced and maintained by VA thereafter.

3. Information technology for this form is not being used since a small number of forms are completed and returned each year. The cost of having a system for this form to be sumbitted electronically would not be cost effective. The form has been placed on the internet where the holder of a vendee account can download and complete.

4. Program reviews were conducted to identify potential areas of duplication; however, none were found to exist.  There is no known Department or agency which maintains the necessary information, nor is it available from other sources within our Department.

5. Small organizations are generally not involved. VA Form 26-8084 is distributed to holders and information collected is the minimum needed to compute the holder's claim.

6. This information collection is not a recurring or repetitive report. It is accomplished on a one-time basis per applicant.

7. There are no special circumstances that require the collection to be conducted in a manner inconsistent with the guidelines in 5 CFR 1320.6.

8. The Department notice was published in the Federal Register on October 4, 2012, page 60747. No comments were received.

9. No payment or gifts to respondents have been made under this collection of information.

10. Loan Guaranty Home, Condominium and Manufactured Home Loan Applicant Records, Specially Adapted Housing Applicant Records, and Vendee Loan Applicant Records - VA (55VA26) are contained in the Privacy Act Issuances, 2001.

11. No sensitive questions appear on the form.

12. Estimate of Information Collection Burden

a. Number of respondents is estimated at 20.

b. Frequency of response is generally one-time.

c. Annual burden is 10 hours.

d. The estimated response time is 30 minutes.

e. The total estimated cost to respondents is $150.

(10 hours x $15 per hour)

13. This submission does not involve any recordkeeping costs.

14. Estimated Annualized Cost to the Federal Government

$272 Estimated Loan Guaranty processing cost for

(20 cases x 30 minutes x $27.24 per

hour (average loan guaranty field salary))

$272 Total estimated cost to Federal Government

15. The decrease in burden hours is due to the last sale of loans guaranteed under 38 CFR 36.4600 occurred in 1988 and many of the outstanding loans have been paid in full.

16. Information collection is not for publication purposes.

17. Not requesting exemption.

18. There is no exception to the certification statement identified in Item l9, "Certification for Paperwork Reduction Act Submissions," of OMB Form 83-l.

2. STATISTICAL METHODS

The data collection does not employ statistical methods.

2.