Request for Emergency Approval of aNew Information Collection Request for hte New Regulation for Special Servicing of Telecommunications Programs Loans for Financially Distressed Borrowers

USDA isigit_
gig!

R ura I
Development

United States Department of Agriculture
Rural Development

August 20, 2019
Elke Hodson Marten
Senior Desk Officer
Office of Management and B dget

TO:

THROUGH: Ruth Brown
USDA Information Col

pee

FROM:

Chad Rupe
Administrator
Rural Utilities Service

SUBJECT:

Request for Emergency Approval of a New Information Collection Request for
the New Regulation for Special Servicing of Telecommunications Programs
Loans for Financially Distressed Borrowers

Rural Development (RD) is requesting emergency review and approval of a new infolmation
collection for the Rural Utilities Service (RUS) to implement its new regulation, Special
Servicing of Telecommunications Programs Loans for Financially Distressed Borrowers. The
new regulation outlines the general policies for servicing actions associated with financially
distressed borrowers from the Telecommunications Infrastructure Loan Program, Rural
Broadband Program, Distance Learning and Telemedicine Program, Broadband Initiatives
Program, and Rural e-Connectivity Pilot Program. The rule has been determined to be
Significant for purposes of Executive Order (E.0)12866. It has been submitted to OMB for
review under E.O. 12866.
The Agency will publish the rulemaking action in the Federal Register as a Final rule; with
request for comments to notify borrowers of the new servicing regulation. The Administrative
Procedures Act exempts from prior notice rules any actions "relating to agency management or
personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(b)(A)). The
rule will become effective on the date of publication in the Federal Register. Therefore, in order
to ensure that any Information Collection and Recordkeeping activities are approved on the
effective date, RD is requesting emergency approval of the new information collection in
coordination with OMB clearance of the associated rulemaking, As the use of normal clearance
procedures is likely to prevent or disrupt the collection of information from borrowers, the 60Day notice for comments is embedded in the Final rule; request for comments.

1400 Independence Ave, S.W. • Washington DC 20250-0700
Web: http://www.rurdev.usda.gov
Committed to the future of rural communities.
"USDA is art equal opportunity provider, employer and lender."
To file a complaint of discrimination, write USDA, Director, Office of Civil Rights,
1400 Independence Avenue, S.W., Washington, DC 20250-9410 or call (800) 795-3272 (Voice) or (202) 720-6382 (TDD).

Due to the need to consider comments received and then issue another notice for the Federal
Register for an additional thirty days of comment, RD would not be able to complete the
information collection process before potential distressed borrowers need servicing actions.
Failure to collect proper infoimation from borrowers could result in improper determinations of
servicing assistance, hinder the government's recovery of such loans, increase legal costs to the
borrower as well as encumber customer service. Please note that after the 60-Day comment
period closes, RD will submit the collection package for a 3-year approval addressing any
comments received.
This new infoimation collection addresses RD's expanded authority to address servicing
actions without having to coordinate with DOJ.
RD considers it imperative to begin using the expanded authority for servicing actions
associated with the RUS Telecommunications Programs in order to: (1) maximize risk
management of loan portfolio; (2) reduce duplication of effort between federal agencies, which
may expedite servicing of distressed borrowers; (3) ensure efficient recovery of debt which may
mitigate negative impact on program subsidy rates; and (4) simplify the servicing process for the
Agency and therefore minimize the financial burden and costs on borrowers.
The RUS Telecommunications Program currently services and monitors loans according to
existing regulations and loan documents. This regulation will apply to borrowers that: (1) seek
assistance that is beyond the scope of regular servicing actions; (2) will ensure recipients comply
with any of the revised terms in repayment on loans; and (3) ensures serving actions are handled
consistently. The new servicing regulation is consistent with the Administration's efforts to
streamline Government functions, improve the efficiency and effectiveness of Government
activities, and strive to be more borrower-friendly. It will ensure consistency and appropriateness
of the Agency's actions when borrowers default on their debts.
In compliance with OMB regulations (5 CFR Part 1320), which implements the Paperwork
Reduction Act of 1995 (Pub. L. 104-13), the information collection and recordkeeping
requirements that may be imposed by this section are submitted to OMB for emergency review
and approval. Attached are the supporting statement and spreadsheet for this collection package.
Should you have any questions, please do not hesitate to contact Michele Brooks, Director,
Rural Development Innovation Center-Regulation Management Division by telephone at (202)
690-1078 or by email at [email protected].
Thank you in advance for your quick review and response to us.