OMB Control Number 1505-0249
Department of the Treasury, Departmental Offices
Supporting Statement and Request for Clearance
Troubled Asset Relief Program – MHA Program Performance Study
(Part A)
CIRCUMSTANCES NECESSITATING THE COLLECTION OF INFORMATION
In February 2009, the Department of the Treasury (Treasury) established the Making Home Affordable Program (MHA) as part of the Troubled Asset Relief Program (TARP), authorized under the Emergency Economic Stabilization Act of 2008, as amended (12 U.S.C. § 5021 et seq.) MHA is designed to help stabilize the housing market and prevent avoidable foreclosure. The primary component of MHA is the Home Affordable Modification Program (HAMP), which facilitates the modification of mortgages at risk of foreclosure. Under HAMP, Treasury provides financial incentives to borrowers, servicers and investors to permanently lower mortgage payments to affordable and sustainable levels.
Treasury wishes to conduct a survey of borrowers that received mortgage modifications under HAMP in order to study the performance of mortgage loans that have been modified under HAMP. The survey will enable Treasury to better understand, among other things, the reasons why homeowners may default on their mortgage after receiving a mortgage modification (a “re-default”), the continued financial stress faced by homeowners participating in HAMP, the homeowners’ experience with HAMP, the homeowners understanding of their modification, and their outlook regarding their housing plans. This information may inform policy decisions about how to lower re-default rates going forward. Minimizing the number of borrowers that default on HAMP modifications is critical to the success of the program.
USE OF THE DATA
Fannie Mae, in its capacity as financial agent of the United States and MHA program administrator, will engage an outside vendor to administer the survey, which will occur in two phases. The results will be paired with other information stored in the HAMP system of record and then analyzed by Treasury and the MHA program administrator in light of the objectives described above.
USE OF INFORMATION TECHNOLOGY
The survey will be a mail questionnaire with an option to complete the questionnaire online.
EFFORTS TO IDENTIFY DUPLICATION
To limit duplication, Treasury will pair the results of the survey with information that was previously collected and stored in the HAMP system of record. Also, HAMP is a relatively new program administered by Treasury; we do not believe research of this kind exists elsewhere within the Federal government.
IMPACT ON SMALL ENTITIES
Not applicable.
Consequences of less frequent collection and obstacles to burden reduction
As described above, the results of the survey will inform Treasury policy decisions to promote sustainable modifications and minimize re-defaults. If Treasury does not conduct the survey, Treasury’s policy decisions may be less effective at minimizing re-defaults.
CIRCUMSTANCES REQUIRING SPECIAL INFORMATION COLLECTION
Not applicable
SOLICITATION OF COMMENTS ON INFORMATION COLLECTION
Treasury published a notice for public comment in the Federal Register on July 10, 2013, and a revised notice on January 24, 2014. No comments have been received to date.
PROVISION OF PAYMENTS TO RECORDKEEPERS
Not applicable.
ASSURANCE OF CONFIDENITALITY
A unique identifying number will be included on each survey instrument in order to pair the responses with information stored in the HAMP system of record. Although there will be no assurance of confidentiality, respondents will be assured that Treasury will not publish their names or other personal information in connection with the survey. Furthermore, Treasury will not disclose personally identifiable information except in accordance with the Privacy Act and the applicable system of record notice.
JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.
Estimated BURDEN OF INFORMATION COLLECTION
The total target sample size is 4,800 homeowners (2,400 in each of two phases with the , first phase being already completed) and the estimated time to complete the survey is 15-20 minutes per respondent ($6.08 – $8.10 based on the February 2014 Total Average Hourly Earnings of $24.31 per Bureau of Labor Statistics Table B-3 last modified March 7, 2014) . Thus, the estimated annual burden is up to 1600 hours. To reach the target sample size the surveys will be conducted in two mailings, a test run mailing to gauge response rate and a principal mailing. A sampled homeowner will only be selected to be part of one of the phases and, if part of the sample selected, will only be surveyed one time either as part of the test run or the principal mailing.
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
Treasury estimates that there will be no annualized capital/start-up costs for the respondents to submit this information.
Estimated cost to the federal government.
The full cost to Treasury of the MHA program performance study is estimated at approximately $600,000.
REASONS FOR CHANGE IN BURDEN
Not applicable.
PLANS FOR TABULATION, STATISTICAL ANALYSIS, AND PUBLICATION
Treasury does not currently plan to publish the results of this survey. However, if Treasury decides at a later date to publicly release a report on the survey results, the publication will not include any information pertaining to specific answers or individuals. Rather, it will include only high-level, aggregate results and the researchers’ analysis of the results combined with data obtained from the HAMP system of record.
Reasons why displaying the OMB expiration date is inappropriate
We believe displaying the OMB expiration date may create confusion about the nature of the collection, given that it is not a recurring collection throughout the approved collection period.
Exceptions to certification requirement of OMB Form 83-I
There are no exceptions to the certification statement in item 19 of Form 83-I.
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| Author | genevieve |
| File Modified | 0000-00-00 |
| File Created | 2021-01-27 |