Supporting Statement-2502-0010

Supporting Statement for Paperwork Reduction Act Submissions

Land Survey Report for Insured Multifamily Projects

OMB Control Number 2502-0010

(Form HUD-92457)

A. Justification:

1. Section 203(a) of the National Housing Act (P.L. 479, 48 Stat., 12 U.S.C. 1709) authorizes the Secretary of HUD, upon application by the mortgagee, to insure any mortgage offered, which is eligible for FHA insurance, and upon such terms as the Secretary may prescribe, to make commitments for insuring such mortgages prior to the date of their execution or disbursement thereon. Additionally, 24 CFR Part 200.61(b) states, “Title evidence for the Commissioner’s examination shall include a lender’s title insurance policy, which title policy provides survey coverage based on a survey acceptable to the title company and the Commissioner; or as the Commissioner may otherwise require, in accordance with terms, conditions, and standards established by the Commissioner.”

A land survey and related information are necessary to secure a marketable title and title insurance for the property that provides security for project mortgage insurance furnished under FHA multifamily programs. The information provided on form HUD-92457 is required to adequately describe the property to ensure compliance with various regulatory provisions, e.g., flood hazard requirements, and to help determine the suitability and value of the property for the intended purpose. The information also provides necessary engineering data for project design for proposed construction projects. Form HUD-92457 includes the standards of performance for conducting the survey and preparing the maps of the survey. It also identifies data that must be addressed to meet program requirements and provides a vehicle for the surveyor to certify compliance with applicable survey and reporting requirements.

2. The required information is prepared by a private, registered civil engineer or land surveyor for the project owner/mortgagor and submitted via form HUD-92457 in conjunction with the application for mortgage insurance during the firm commitment and initial endorsement of the loan for multifamily projects. This ensures the integrity of property lines and that there are no changes involving possible encroachments to property lines, title lines, and lines of actual possession between the firm commitment and initial endorsement period. Form HUD-92457 must be submitted 30 days before the initial closing by a licensed surveyor and bearing the surveyor’s professional seal.

For proposed construction projects, form HUD-92457 is also submitted in conjunction with project construction drawings and specifications submitted for review, and on occasion during construction. Page one of the forms define the standards of performance for the survey, the purpose for the survey, and identifies the certification to be included on the survey maps. Page 2 of the form is the Surveyor’s Report, which identifies significant site features that warrant special underwriting consideration. The date on which the survey was made should be recorded, as the date is needed to document subsequent surveyor site visits. Those subsequent surveyor site visits are necessary to verify the continuing accuracy of the survey and to make sure the information is current for applications for mortgage insurance and loan closing transactions. Form HUD-92457 provides a uniform method of acceptability for meeting program criteria to minimize risk to the insurance fund. This information collection will also minimize the risks to the insurance fund that might arise from inadequate project land surveys and related data.

3. While the form may be completed on-line, it must be submitted in hard copy at this time.

Reengineering efforts are being made to replace the DAP system, which would improve the functionality and replacement of technology, and the online implementation of automated underwriting processing from the beginning to end of completion, including the e-signature.  The target date of 9/30/2016 was given for implementation.  The information was based on the 2009 FHA Multifamily IT Strategy Plan, modernization of IT.  This information was submitted to Congress.  Procurements are involved so the projected date is 9/2016 for implementation assuming all goes well with procurements.

4. Automation is not feasible at this time due to the necessity to include maps/plats and construction drawings in the submission.

5. No duplication exists. Surveys are only submitted on multifamily construction projects. A review of Multifamily Housing information collections confirms that no other information collection provides this particular information.

6. The Department minimizes the burden on small businesses by requiring this information only when an application for mortgage insurance is filed.

7. The collection of this information accommodates securing marketable title and title insurance on properties for which mortgage insurance is written. It also assists in making determinations regarding the property’s compliance with applicable program regulations, e.g., those pertaining to flood hazard, and in reaching underwriting determinations regarding property suitability and worth for the intended use. Without this data the Federal program of mortgage insurance cannot operate.

8. There are no special circumstances involved with this collection.

9. 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 August 13, 2014 in (Volume 79, Number 156, Page 47475). There were no comments received.

10. Respondents are not provided any payment or gifts.

11. HUD does not assure confidentiality.

12. The collection does not contain questions of a sensitive nature.

13. Estimate of annual burden hours and annualized cost to respondents.

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Hr Per Response	Annual Burden Hrs	Hrly Cost per Response	Total Annual Cost
HUD 92457 & Related Documents	216	2	432	0.50	216	$50.00	$10,800

The hourly rate is an estimate based on the salaries of surveyors, architects, and project owners.

It is estimated that there will be approximately 200 respondents who will submit form HUD-92457 at application and at closing.

14. There are no additional costs for respondents.

15. Projected Annual Costs to Federal Government:

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Hrs Per Response	Annual Burden Hours	Hrly Cost per Response	Total Annual Cost
HUD 92457 & Related Documents	216	2	432	0.16	69	$41.00	$2,800

The hourly rate is based on the salary of a GS-12 step 5 for field staff review of documents.

16. This is an extension of a currently approved collection. There have been no program changes.

17. The collection of information is not scheduled for publication.

18. HUD will not seek approval to avoid displaying the OMB expiration date.

19. There are no exceptions to the Certification Statement identified in item 19 of Form OMB 83-1.

B. Collection of Information Employing Statistical Methods:

The collection of information does not employ statistical methods.

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