Supporting Statement for Paperwork Reduction Act Submissions
Mortgage Insurance Termination;
Application for Premium Refund or Distributive Share
2502-0414
In previous fiscal years, lenders submitted Mortgage Insurance Termination information to HUD using the form HUD-27050-A. This form is no longer in use; however, the information collection is still in effect. Today, as the result of technological advances, this information is now submitted electronically to HUD from lenders via Electronic Data Interchange (EDI) and via the Internet through FHA Connection in order to take advantage of new technology and reduce the reporting burden for the submission of termination information. Homeowners are still required to use the source document form HUD 27050-B.
No other duplicate data exists. The data is not available from other sources.
Small businesses or other small entities are not respondents.
Current guidelines for servicing procedures give the mortgagee 15 days from the date of termination of FHA mortgage insurance; and if there has been no claim for insurance benefits, to provide the required data. Any further delay in providing the data at the time of termination would further erode the reliability and effectiveness of the program functions, which depend on timely reporting of the termination of the mortgage insurance contract. Less frequent responses would delay HUD's ability to refund to the mortgagor all the unearned mortgage insurance premiums or pay the mortgagor a distributive share.
Explain any special circumstances that would cause an information collection to be conducted in a
manner:
* requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it:
Mortgagees are required to provide the specified information within 15 days of the date of termination of the FHA mortgage insurance.
* requiring respondents to submit more than an original and two copies of any document; * requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years:
None Applicable
* in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study:
None Applicable
* requiring the use of a statistical data classification that has not been reviewed and approved by OMB:
None Applicable
* that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or:
None Applicable
* requiring respondents to submit proprietary trade secrets, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.
None Applicable
The agency notice soliciting comments on the information collection for OMB #2502-0414 was published in the Federal Register on Thursday, July 21, 2016 (Vol. 81, No. 119, page 40340). No comments were received.
No gift or payment is provided to respondents.
Homeowner information collected on the form HUD-27050-B is covered by the Freedom of Information Act.
No questions of a sensitive nature are involved.
Estimate of Public Burden.
Information Collection |
Number of Respondents |
Frequency of Response |
Total Annual Responses |
Hours Per Response |
Total Annual Hours |
Hourly Cost |
Total Annual Cost |
Mortgage Insurance Termination |
6,000 |
Varies |
675,000 |
.08 |
54,000.00 |
$20.00 |
$1,080,000.00 |
HUD-27050-B |
50,000 |
1 |
50,000 |
.25 |
12,500.00 |
$35.00 |
$437,500.00 |
Totals |
56,000 |
|
725,000 |
|
66,500.00 |
|
$1,517,500.00 |
Hourly cost is based on an estimated average annual salary of $40,000 for lender personnel and an estimated average annual salary of $72,800 for mortgagors.
There are no additional costs to the respondents.
Costs to the Federal Government:
Information Collection |
Total Annual Responses |
Hours Per Response |
Total Annual Hours |
Hourly Cost |
Total Annual Cost |
Mortgage Insurance Termination |
675,000 |
.03 |
20,250.00 |
$37.25 |
$754,312.50 |
HUD-27050-B |
50,000 |
.08 |
4,000.00 |
$37.25 |
$149,000.00 |
Totals |
725,000 |
|
24,250.00 |
|
$903,312.50 |
Hourly cost is based on an estimated average annual FY 2016 salary of $77,490 for GS-12-1 employees.
This is a revision of a currently approval package. The decrease in the estimated numbers of respondents, responses, burden hours, and costs reflects the decrease in FHA loan activity in recent years. Previously, the decrease in interest rates caused larger numbers of homeowners to refinance their existing loans to reduce their monthly mortgage payments. With the recent stabilization of interest rates, fewer homeowners are refinancing FHA to FHA.
The results of the information collection will not be published.
We are not seeking approval to avoid displaying the expiration date for the OMB approval.
There are no exceptions to the certification statement identified in item 19 of the OMB 83-I.
B. Collections of Information Employing Statistical Methods
The collection of information does not employ statistical methods.
| File Type | application/msword |
| File Title | Paperwork Reduction Act Submission |
| Author | Silas C. Vaughn, Jr. |
| Last Modified By | Pollard, Colette |
| File Modified | 2016-11-21 |
| File Created | 2016-11-21 |