11946 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

AIRAC date State City Airport FDC No. FDC date Subject 

7–Apr–11 ...... TN Memphis ................. Memphis Intl ............................ 1/3347 2/7/11 RNAV (GPS) RWY 36R, Amdt 

1A 

7–Apr–11 ...... TX Port Isabel .............. Port Isabel—Cameron County 1/3406 2/7/11 VOR A, Amdt 6 

7–Apr–11 ...... FL Apalachicola ........... Apalachicola Regional ............. 1/3488 2/7/11 RNAV (GPS) A, Orig 

7–Apr–11 ...... FL Fort Myers .............. Page Field ............................... 1/3495 2/7/11 GPS RWY 31, Orig-A 

7–Apr–11 ...... FL Fort Myers .............. Page Field ............................... 1/3496 2/7/11 ILS RWY 5, Amdt 6E 

7–Apr–11 ...... FL Fort Myers .............. Page Field ............................... 1/3497 2/7/11 VOR WY 13, Orig-B 

7–Apr–11 ...... ME Portland .................. Portland Intl Jetport ................. 1/3506 2/7/11 RNAV (GPS) RWY 29, Amdt 1 

7–Apr–11 ...... TX Fredericksburg ........ Gillespie County ...................... 1/3573 2/7/11 VOR/DME A, Amdt 3 

7–Apr–11 ...... TX Fredericksburg ........ Gillespie County ...................... 1/3574 2/7/11 RNAV (GPS) RWY 32, Orig 

7–Apr–11 ...... TX Fredericksburg ........ Gillespie County ...................... 1/3575 2/7/11 RNAV (GPS) RWY 14, Orig 

7–Apr–11 ...... NM Albuquerque ........... Albuquerque Intl Sunport ........ 1/3664 2/8/11 RNAV (GPS) RWY 35, Amdt 1 

7–Apr–11 ...... TX Port Isabel .............. Port Isabel—Cameron County 1/3668 2/8/11 VOR/DME B, Amdt 3 

7–Apr–11 ...... CO Aspen ...................... Aspen-Pitkin Co/Sardy Field ... 1/3699 2/7/11 LOC/DME E, Amdt 1 

7–Apr–11 ...... CO Aspen ...................... Aspen-Pitkin Co/Sardy Field ... 1/3701 2/7/11 VOR/DME OR GPS C, Amdt 4F 

7–Apr–11 ...... VA Winchester .............. Winchester Rgnl ...................... 1/3737 2/7/11 Takeoff Minimums and Obstacle 

DP, Orig 

7–Apr–11 ...... KY Lexington ................ Blue Grass .............................. 1/3779 2/7/11 ILS OR LOC RWY 22, Amdt 20 

7–Apr–11 ...... DC Washington ............. Washington Dulles Intl ............ 1/3789 2/7/11 ILS OR LOC/DME RWY 12, 

Amdt 9 

7–Apr–11 ...... DC Washington ............. Washington Dulles Intl ............ 1/3790 2/7/11 RNAV (GPS) Y RWY 1R, Amdt 1 

7–Apr–11 ...... SC Allendale ................. Allendale County ..................... 1/3793 2/7/11 GPS RWY 17, Orig 

7–Apr–11 ...... SC Allendale ................. Allendale County ..................... 1/3795 2/7/11 VOR OR GPS A, Amdt 5 

7–Apr–11 ...... SC Allendale ................. Allendale County ..................... 1/3796 2/7/11 GPS RWY 35, Amdt 1 

7–Apr–11 ...... VA South Boston .......... William M Tuck ........................ 1/3819 2/7/11 VOR A, Amdt 8 

7–Apr–11 ...... VA South Boston .......... William M Tuck ........................ 1/3820 2/7/11 RNAV (GPS) RWY 1, Orig 

7–Apr–11 ...... VA South Boston .......... William M Tuck ........................ 1/3821 2/7/11 RNAV (GPS) RWY 19, Orig 

7–Apr–11 ...... SC Columbia ................. Jim Hamilton L.B. Owens ....... 1/4017 2/8/11 GPS RWY 31, Orig 

7–Apr–11 ...... NC Shelby ..................... Shelby-Cleveland County Rgnl 1/4095 2/7/11 NDB RWY 23, Amdt 1 

7–Apr–11 ...... NC Shelby ..................... Shelby-Cleveland County Rgnl 1/4097 2/7/11 RNAV (GPS) RWY 5, Amdt 1 

7–Apr–11 ...... MS Bay St Louis ........... Stennis Intl .............................. 1/4120 2/7/11 RNAV (GPS) RWY 18, Orig-A 

7–Apr–11 ...... TN Memphis ................. General DeWitt Spain ............. 1/4170 2/7/11 VOR RWY 17, Orig-A 

7–Apr–11 ...... VA Orange .................... Orange County ........................ 1/4171 2/7/11 GPS RWY 8, Orig-A 

7–Apr–11 ...... GA Griffin ...................... Griffin-Spalding County ........... 1/4172 2/7/11 NDB RWY 32, Orig-A 

7–Apr–11 ...... TX Midland ................... Midland Intl .............................. 1/4195 2/7/11 RNAV (GPS) RWY 10, Amdt 1 

7–Apr–11 ...... NC Rocky Mount ........... Rocky Mount—Wilson Rgnl .... 1/4441 2/7/11 ILS OR LOC RWY 4, Amdt 16 

7–Apr–11 ...... TN Tullahoma ............... Tullahoma Rgnl Arpt/Wm 

Northern Field.

1/4449 2/7/11 VOR WY 24, Orig-B 

7–Apr–11 ...... VA Richmond ................ Chesterfield County ................. 1/4480 2/7/11 ILS OR LOC RWY 33, Amdt 2 

7–Apr–11 ...... NM Albuquerque ........... Albuquerque Intl Sunport ........ 1/4505 2/3/11 ILS OR LOC RWY 8, Amdt 5E 

7–Apr–11 ...... TX Fort Worth ............... Fort Worth Meacham Intl ........ 1/4557 2/7/11 RNAV (GPS) RWY 16, Amdt 1 

7–Apr–11 ...... TX Houston .................. Willam P Hobby ...................... 1/4558 2/7/11 ILS OR LOC RWY 12R, Amdt 12 

7–Apr–11 ...... TX Houston .................. Willam P Hobby ...................... 1/4559 2/7/11 RNAV (GPS) RWY 22, Amdt 2 

7–Apr–11 ...... TN Tullahoma ............... Tullahoma Rgnl Arpt/Wm 

Northern Field.

1/4575 2/7/11 RNAV (GPS) RWY 24, Orig-C 

7–Apr–11 ...... TN Tullahoma ............... Tullahoma Rgnl Arpt/Wm 

Northern Field.

1/4576 2/7/11 RNAV (GPS) RWY 6, Orig-A 

7–Apr–11 ...... TX Caldwell .................. Caldwell Muni .......................... 1/6133 2/14/11 Takeoff Minimums and Obstacle 

DP, Orig 

7–Apr–11 ...... TX Cleveland ................ Cleveland Muni ....................... 1/6154 2/14/11 VOR A, Amdt 4B 

7–Apr–11 ...... TX Cleveland ................ Cleveland Muni ....................... 1/6283 2/14/11 GPS RWY 16, Orig-B 

[FR Doc. 2011–4579 Filed 3–3–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Chapter XV 

[Docket No. FR–5470–I–01] 

RIN 2502–AI97 

Emergency Homeowners’ Loan 

Program 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Interim rule. 

SUMMARY: This interim rule reinstates, 

with certain modifications, regulations 

that HUD formerly published to serve as 

the framework by which emergency 

relief may be provided to homeowners 

experiencing temporary involuntary loss 

of employment or underemployment 

resulting in a substantial reduction in 

income due to adverse economic 

conditions, and who consequently are 

financially unable to make full mortgage 

payments. These regulations were 

promulgated following enactment of the 

Emergency Homeowners’ Relief Act of 

1975. This 1975 statute provided 

standby authority to the Secretary to 

insure or make loans to homeowners to 

defray mortgage expenses, so as to 

prevent widespread mortgage 

foreclosures and distress sales of homes 

resulting from a homeowner’s 

substantial reduction income. Although 

the 1975 regulations were quickly put in 

place, they were not utilized, and HUD 

eventually removed the regulations from 

the Code of Federal Regulations (CFR) 

in 1995. 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act, recently 

enacted into law, reauthorized the 1975 

statute, with certain amendments, and 

made $1 billion available for this 1975 

program during Fiscal Year (FY) 2011. 

Accordingly, HUD is reinstating the 


jdjones on DSK8KYBLC1PROD with RULES2
Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 11947 

1On November 12, 2010 (75 FR 69454), HUD 

published a notice that solicited applications from 

States that have existing programs that are 

substantially similar to HUD’s, and announced the 

allocation of assistance by State. 

regulations for the program, under the 

title of ‘‘Emergency Homeowners’ Loan 

Program,’’ with such modifications as 

necessary to mirror the statutory 

changes to the Emergency Homeowners’ 

Relief Act of 1975 made by the DoddFrank Wall Street Reform and Consumer 

Protection Act. 

DATES: Effective Date: April 4, 2011. 

Comment Due Date. May 3, 2011. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this rule to the Regulations Division, 

Office of General Counsel, 451 7th 

Street, SW., Room 10276, Department of 

Housing and Urban Development, 

Washington, DC 20410–0500. 

Communications must refer to the above 

docket number and title. There are two 

methods for submitting public 

comments. All submissions must refer 

to the above docket number and title. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street, SW., Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may 

submit comments electronically through 

the Federal eRulemaking Portal at 

http://www.regulations.gov. HUD 

strongly encourages commenters to 

submit comments electronically. 

Electronic submission of comments 

allows the commenter maximum time to 

prepare and submit a comment, ensures 

timely receipt by HUD, and enables 

HUD to make them immediately 

available to the public. Comments 

submitted electronically through the 

http://www.regulations.gov Web site can 

be viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as public 

comments, comments must be submitted 

through one of the two methods specified 

above. Again, all submissions must refer to 

the docket number and title of the rule. 

No Facsimile Comments. Facsimile 

(FAX) comments are not acceptable. 

Public Inspection of Public 

Comments. All properly submitted 

comments and communications 

submitted to HUD will be available for 

public inspection and copying between 

8 a.m. and 5 p.m. weekdays at the above 

address. Due to security measures at the 

HUD Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at 202–708– 

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

through TTY by calling the Federal 

Information Relay Service at 800–877– 

8339. Copies of all comments submitted 

are available for inspection and 

downloading at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Ruth Roman, Director, Program Support 

Division, Office of Single Family 

Housing, Office of Housing, Department 

of Housing and Urban Development, 

451 7th Street SW., Washington, DC 

20410; telephone number 202–708–0317 

(this is not a toll-free number). Persons 

with hearing or speech impairments 

may access this number through TTY by 

calling the toll-free Federal Information 

Relay Service at 800–877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On July 2, 1975, the Emergency 

Housing Act of 1975 (Pub. L. 94–50, 

approved July 2, 1975) (12 U.S.C. 2701 

et seq.) was signed into law. Title I of 

this statute is the Emergency 

Homeowners’ Relief Act (1975 Act). The 

1975 Act conferred on HUD standby 

authority to insure or make loans to, or 

make emergency mortgage relief 

payments on behalf of, homeowners to 

defray their mortgage expenses 

(collectively emergency assistance), so 

as to prevent widespread mortgage 

foreclosures and distress sales of homes 

due to a substantial reduction of income 

resulting from the temporary 

involuntary loss of employment or 

underemployment due to adverse 

economic conditions. Following 

enactment of the Emergency 

Homeowners’ Relief Act, HUD 

promulgated final regulations on 

December 30, 1975 (See 40 FR 59866) 

and codified these regulations in 24 CFR 

part 2700. In the preamble to the 

December 30, 1975, final rule, HUD 

stated as follows: ‘‘If it becomes 

necessary to implement the program, 

HUD would provide emergency relief 

under the standby program by 

coinsuring loans made by private 

lenders or by making direct loans to 

homeowners to assist them in making 

their mortgage payments.’’ (See 40 FR 

59866.) This emergency assistance 

program, quickly put in place by HUD 

in 1975, was not utilized and, in 1995, 

as part of HUD’s effort to remove 

outdated, obsolete, or unutilized 

regulations, HUD removed the 

regulations in 24 CFR part 2700 from 

the CFR. (See 60 FR 47263.) 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (Pub. 

L.111–203) (the Dodd-Frank Act), 

signed into law on July 21, 2010, makes 

available $1,000,000,000 for HUD to 

establish the Emergency Homeowners’ 

Relief Fund for this reauthorized 1975 

program, commencing in FY 2011, for 

the purpose of providing emergency 

mortgage assistance in accordance with 

the 1975 Act, as amended. HUD will 

administer the authority provided by 

the Dodd-Frank Act as the Emergency 

Homeowners’ Loan Program (EHLP). In 

addition to making funding available, 

section 1496 of the Dodd-Frank Act also 

amends several provisions of the 1975 

Act. The amendments to the 1975 Act 

include the following: 

• Certification by the homeowner and 

the holder of the homeowner’s 

delinquent mortgage that circumstances 

make it probable that there will be a 

foreclosure and the homeowner is in 

need of emergency mortgage relief; 

• Establishment of a ceiling of 

$50,000 as the aggregate amount of 

emergency assistance that can be 

provided to any homeowner; 

• Inclusion of ‘‘medical conditions’’ as 

the cause of the homeowner’s 

involuntary unemployment or 

underemployment; 

• Prohibition on the charging of 

interest on interest that is deferred on an 

emergency mortgage relief loan or 

advance of credit provided under the 

EHLP; 

• Prohibition on the charging of 

interest on any emergency loan or 

advance of credit insured under the 

EHLP program at a rate that exceeds the 

rate of interest that is generally charged 

for single-family housing mortgages 

insured by the Federal Housing 

Administration; and 

• Prohibition on imposition of any 

penalty on a homeowner who receives 

emergency assistance under the EHLP 

and repays the emergency assistance 

loan in full before the loan becomes due 

and payable. 

In addition to these amendments, the 

1975 Act, as amended by the DoddFrank Act, authorizes HUD to allow 

funds under the EHLP to be 

administered by a State that has an 

existing program that is determined by 

the Secretary to provide substantially 

similar assistance to homeowners.1

Unchanged in the 1975 Act is the 

authority provided to the Secretary to 

make such delegations and accept such 

certifications, with respect to the 

processing of emergency mortgage relief 

payments, as the Secretary determines 

appropriate to facilitate the prompt and 


jdjones on DSK8KYBLC1PROD with RULES2
11948 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

efficient implementation of this type of 

emergency assistance authorized under 

the program. 

Underscoring the need to make this 

funding immediately available to 

eligible homeowners are two dates: The 

effective date of October 1, 2010, the 

first date by which funding may be 

allocated; and the date of September 30, 

2011, the last date on which HUD can 

enter into binding agreements with 

individual mortgagors approved for 

participation in the program. Note that 

a binding agreement occurs only when 

a borrower has been approved for 

participation in this program and funds 

have been allocated to that borrower, all 

of which must occur on or before 

September 30, 2011. 

II. This Interim Rule 

Given the statutory deadline of 

September 30, 2011, described above for 

HUD to enter into binding agreements 

with individual mortgagors approved 

for EHLP participation, HUD is 

reinstating the 1975 program 

regulations, substantially as 

promulgated in 1975, which largely 

adopted the complete statutory 

framework for emergency assistance 

provided for the program, with 

modifications to mirror the statutory 

changes of the Dodd-Frank Act, reflect 

the housing and mortgage markets of 

today, and make such other changes that 

HUD determined necessary to meet the 

statutory objectives of the Dodd-Frank 

Act. 

In addition to revising the 1975 

regulations to reflect the statutory 

changes made by the Dodd-Frank Act, 

this rule amends the 1975 regulations to 

include certain provisions of the 1975 

Act that were not included in the 

regulations promulgated in 1975. HUD 

is conforming the 1975 regulations to 

reflect these statutory provisions, such 

as direct payments to mortgagees, so 

that the regulations reflect the full 

emergency assistance authority 

provided to HUD by the 1975 Act. 

Finally, HUD is using this rule to reflect 

terminology that is used in the mortgage 

market of today and to make other 

changes to achieve the statutory 

direction to make funding immediately 

available for emergency mortgage 

assistance. The following highlights the 

additional changes made to the 1975 

regulations: 

• The rule clarifies that the principal 

residence of the homeowner for which 

the homeowner seeks relief to prevent 

foreclosure may be a condominium, a 

cooperative, or a manufactured home. 

• The rule includes the list of eligible 

institutions for which HUD is 

authorized to provide insurance for 

emergency mortgage relief loans and 

advances of credit as provided in 

section 105 of the Emergency 

Homeowners’ Relief Act. The list of 

these institutions was not revised by the 

Dodd-Frank Act but was omitted from 

the 1975 regulations. 

• The rule provides that an eligible 

homeowner must have a total annual 

income (as defined in these regulations, 

and hereafter referred to as ‘‘income’’) 

that is equal to, or less than, 120 percent 

the area median income (AMI), as 

determined by HUD and adjusted for 

household size. HUD defines AMI in 

§ 2700.5 of the rule. 

• The rule provides that an eligible 

homeowner must have incurred a 

substantial reduction of income, as a 

result of involuntary loss of 

employment or underemployment, that 

is at least 15 percent lower than the 

income the homeowner had prior to loss 

of employment or underemployment. 

• The rule requires, consistent with 

the statute, that the aggregate amount of 

assistance to an eligible homeowner 

cannot exceed $50,000. 

• The rule provides that eligible 

homeowners may receive assistance for 

up to 12 months, and in accordance 

with criteria established by HUD, and 

that such assistance may be extended 

once for up to 12 additional months, or 

may receive assistance in an amount up 

to the statutory ceiling of $50,000, 

whichever occurs first. However, please 

note that the Federal Register 

document, which reactivates the 

program for FY 2011, provides for 

eligible homeowners to receive 

assistance for up to 24 months, or up to 

the statutory ceiling amount of $50,000. 

Given the duration of high 

unemployment, HUD has determined 

that so long as eligibility requirements 

are maintained, HUD will provide the 

maximum period of 24 months of 

homeowner assistance at the outset. 

• The rule provides, as did the 1975 

regulations, that emergency assistance 

may be provided only if the homeowner 

has a back-end ratio or debt-to-income 

(DTI) below 55 percent (principal, 

interest, taxes, insurance, revolving and 

fixed installment debt divided by total 

monthly income). For this calculation, 

the homeowner’s income will be 

measured at the pre-Event level. 

Homeowners with second mortgage debt 

or equity lines of credit may qualify for 

emergency assistance if the 

homeowner’s DTI is within the 

program’s 55 percent limit. 

• The rule includes monitoring 

requirements to ensure that the 

homeowner remains eligible for the 

emergency assistance after such 

assistance has commenced, and also 

specifies the conditions under which 

emergency assistance to the homeowner 

will be terminated. 

• The rule adds a declining balance, 

nonrecourse, zero interest, subordinate 

secured loan, with a term of up to 

7 years, as a type of repayment 

mechanism for emergency mortgage 

relief payments. 

• The rule codifies the provision of 

the 1975 Act that authorizes the 

Secretary to delegate and accept 

certifications with respect to the 

processing of emergency mortgage relief 

payments as may be appropriate to 

facilitate the prompt and efficient 

implementation of this type of 

emergency assistance. 

• The 1975 regulations made 

reference to the Soldier’s and Sailor’s 

Civil Relief Act of 1940, and the rule 

updates the reference to this statute to 

reflect its successor statute, which is the 

Servicemembers Civil Relief Act of 

2003. 

III. Notice of Program Activation and 

Fund Availability 

Elsewhere in today’s Federal Register, 

HUD is publishing a notice consistent 

with § 2700.10, which formally 

announces that EHLP has been 

activated, and describes the emergency 

assistance being made available in this 

FY 2011 reactivation of the program. 

While the regulations allow for the 

Secretary to choose among several tools 

to provide emergency homeowners’ 

relief, only those tools that are provided 

in the notice are being used to provide 

emergency homeowner relief in FY 

2011. HUD’s position is that, given 

funding for EHLP is available for one 

fiscal year, the requirements for the 

emergency assistance to be provided 

must be firmly established at the outset 

of the commencement of the program; 

that is, with the issuance of the Federal 

Register notice. HUD believes the 

program, as reactivated for FY 2011, 

through the Federal Register notice, 

provides the relief contemplated by the 

Dodd-Frank Act. 

IV. Findings and Certifications 

Justification for Interim Rule 

Consistent with its regulations on 

rulemaking at 24 CFR part 10, HUD 

ordinarily publishes its rules for 

advance public comment. Advance 

notice and public procedure are 

omitted, however, if HUD determines 

that, in a particular case or class of 

cases, notice and public procedure are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ (See 24 CFR 

10.1.) In this case, HUD finds that to 

wait for public comment before making 


jdjones on DSK8KYBLC1PROD with RULES2
Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 11949 

emergency assistance available under 

the Emergency Homeowners’ Relief Act 

would be contrary to the public interest, 

and inconsistent with the statutory 

objective, which is for the program to be 

a source of authority by which the 

Secretary of HUD can immediately act. 

Funds became available for this 

program on October 1, 2010, and, as 

noted earlier in this preamble, HUD 

must enter into binding agreements with 

approved homeowners no later than by 

September 30, 2011. Given this statutory 

deadline, HUD believes homeowners 

who HUD could help under this 

program may be victims of foreclosure 

if the program is not commenced as 

quickly as possible. Accordingly, HUD 

finds that it is important that interested 

lenders and homeowners know that the 

program requirements are set for this 

first year and will not be changed. 

While HUD is issuing this rule for 

effect, HUD is also soliciting public 

comment. Although HUD is soliciting 

public comment on the 1975 

regulations, reinstated with 

modifications, and the reactivated 

program overall, HUD is not 

anticipating making significant changes 

to the requirements governing the type 

of emergency assistance provided under 

EHLP for FY 2011. As noted earlier, 

HUD’s position is that, given funding for 

EHLP is available for one fiscal year, the 

requirements for the emergency 

assistance to be provided must be firmly 

established at the outset of the 

commencement of the program; that is, 

with the issuance of the companion 

Federal Register notice. HUD believes 

the program, as reactivated for FY 2011, 

through the Federal Register notice, 

provides the relief contemplated by the 

Dodd-Frank Act. However, if a 

commenter, participating lender, 

eligible borrower, or potential eligible 

borrower identifies an aspect of the 

program for which a change would help 

facilitate assistance to eligible 

homeowners or provide further 

protections against waste, fraud, and 

abuse, HUD will make the necessary 

change. Further, if funding is provided 

for EHLP beyond FY 2011, HUD will 

consider the comments received in its 

reevaluation of the program, following 

this first year of reactivation, and make 

such changes based on public comment 

and the experience of administering 

EHLP emergency assistance in FY 2011. 

Executive Order 12866, Regulatory 

Planning and Review 

The Office of Management and Budget 

(OMB) reviewed this rule under 

Executive Order 12866 (entitled 

‘‘Regulatory Planning and Review’’). 

This rule was determined to be an 

economically significant regulatory act 

under Executive Order 12866. 

The program that is reactivated under 

the regulations established by this rule 

is intended to assist a segment of 

delinquent homeowners who face a high 

probability of foreclosure and have 

become delinquent due to a temporary 

loss of income. It is expected that the 

assisted households can recover 

financially within 24 months. The 

benefits of this program include the 

avoidance of costs associated with 

foreclosure by lenders, homeowners 

facing foreclosure, neighbors of the 

foreclosed property, and local 

governments. Overall, the benefits are 

estimated to be between $1.7 billion and 

$3.4 billion, offset by the costs of 

administration, namely selecting 

participants ($87.3 million) and 

servicing the EHLP loans ($7.4 million 

to $11.3 million), and up to $23.96 

million of incremental costs of 

foreclosure to lenders caused by 

borrowers assisted by EHLP who 

subsequently default anyway. In 

addition, participants in this program 

receive a transfer ranging from $28.32 

million to $43.3 million, which is equal 

to the government’s cost of borrowing 

the funds. 

Participation in the EHLP program 

requires households to be at least 3 

months delinquent. Assuming that 

participating homeowners are on 

average 5 months delinquent, this 

would add $8,778 to the total loan 

amount, for an overall total of $26,148. 

With a program limit of approximately 

$901 million available for loans to 

homeowners, after subtracting 

administrative costs, this would assist a 

maximum of 34,474 homeowners. This 

assessment calculates the benefits, costs, 

and transfers assuming that a range of 

22,546 and 34,474 homeowners receive 

EHLP loans. 

The full Regulatory Impact Analysis 

can be found at http://www.hud.gov/ 

offices/adm/hudclips/ia/ and is also 

contained in the docket file for this rule, 

which is available for public inspection 

in the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street, SW., Room 10276, 

Washington, DC 20410–0500. Due to 

security measures at the HUD 

Headquarters building, please schedule 

an appointment to review the docket file 

by calling the Regulations Division at 

202–402–3055 (this is not a toll-free 

number). Individuals with speech or 

hearing impairments may access this 

number via TTY by calling the Federal 

Information Relay Service at 800–877– 

8339. 

Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required pursuant to 

5 U.S.C. 553(b) for this rule, the 

provisions of the Regulatory Flexibility 

Act (5 U.S.C. 601 et seq.) do not apply. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either, on the 

one hand, imposes substantial direct 

compliance costs on State and local 

governments and is not required by 

statute, or, on the other hand, the rule 

preempts State law, unless the agency 

meets the consultation and funding 

requirements of section 6 of the Order. 

This rule does not have federalism 

implications and would not impose 

substantial direct compliance costs on 

State and local governments nor 

preempt State law within the meaning 

of the Order. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 establishes 

requirements for Federal agencies to 

assess the effects of their regulatory 

actions on State, local, and Tribal 

governments and the private sector. 

This rule will not impose any Federal 

mandates on any State, local, or Tribal 

governments or the private sector within 

the meaning of the Unfunded Mandates 

Reform Act of 1995. 

Environmental Review 

This rule does not direct, provide for 

assistance or loan and mortgage 

insurance for, or otherwise govern, or 

regulate, real property acquisition, 

disposition, leasing, rehabilitation, 

alteration, demolition, or new 

construction, or establish, revise or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this rule is 

categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

Congressional Review Act 

This rule constitutes a ‘‘major rule’’ as 

defined in the Congressional Review 

Act (5 U.S.C. Chapter 8). The 

Congressional Review Act provides for 

major rules to have a 60-day delayed 

effective date. However, section 808 of 

the Congressional Review Act provides 

that the 60-day delayed effective date 

can be waived for good cause, and the 

agency issuing the major rule is to 

incorporate the good cause finding and 

provide a brief statement of reasons that 


jdjones on DSK8KYBLC1PROD with RULES2
11950 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

notice and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest. The reasons 

provided in the section of the preamble 

pertaining to Justification for Interim 

Rule serve as the justification for 

abbreviating the delayed effective date 

from 60 days to 30 days. As provided in 

that section, this rule provides for 

emergency relief to unemployed and 

underemployed homeowners, but 

further provides that such emergency 

relief is available only through 

September 30, 2011. For these reasons, 

HUD believes it is contrary to the public 

interest to delay the availability of 

emergency relief for a period of 60 days. 

HUD also notes that, although this rule 

is issued for effect, HUD is soliciting 

public comment. 

List of Subjects in 24 CFR Part 2700 

Administrative procedures, Mortgage 

insurance, Practice and procedure, 

Reporting and recordkeeping 

requirements. 

Accordingly, for the reasons stated in 

the preamble, HUD is establishing a new 

chapter XV in title 24 of the Code of 

Federal Regulations, consisting of part 

2700 to read as follows: 

Title 24—Housing and Urban 

Development 

Chapter XV—Emergency Mortgage 

Insurance and Loan Programs, Department 

of Housing and Urban Development 

PART 2700—EMERGENCY 

HOMEOWNERS’ LOAN PROGRAM 

Subpart A—General 

2700.1 Purpose. 

2700.5 Definitions. 

2700.10 Determination of emergency. 

Subpart B—Eligibility 

2700.101 Eligible properties. 

2700.105 Eligible institutions. 

2700.110 Eligible homeowners. 

Subpart C—Emergency Assistance 

2700.201 Types and terms of emergency 

assistance. 

2700.205 Emergency assistance amount. 

2700.210 Finance charges. 

Subpart D—Mortgage Insurance 

2700.301 Loan applications. 

2700.305 Conditions of insurance. 

2700.310 Fees. 

2700.315 Insurance premium. 

2700.320 Servicing. 

2700.325 Termination of mortgage 

insurance. 

2700.330 Default. 

2700.335 Claims. 

2700.340 Payment of insurance benefits. 

2700.345 Administrative reports and 

examinations. 

2700.350 Sale, assignment, and pledge of 

insured loan. 

Subpart E—Direct Loans 

2700.401 Participation by lending 

institutions. 

2700.405 Application for loans. 

2700.410 Transmittal of Funds. 

2700.415 Fees. 

2700.420 Servicing. 

2700.425 Default. 

2700.430 Collection. 

2700.435 Payment to HUD. 

2700.440 Administrative report and 

examinations. 

Authority: 12 U.S.C. 2707; 42 U.S.C. 

3535(d) 

Subpart A—General 

§ 2700.1 Purpose. 

This part establishes the Emergency 

Homeowners’ Loan Program, a standby 

program authorized by the Emergency 

Homeowners Relief Act of 1975, as 

amended, to prevent widespread 

mortgage foreclosures and distress sales 

of homes resulting from a homeowner’s 

substantial reduction in income due to 

temporary involuntary loss of 

employment or underemployment 

resulting from adverse economic 

conditions or medical condition. Under 

this program, HUD is authorized to 

provide relief in the forms of emergency 

mortgage relief loans, advances of 

credit, or emergency mortgage relief 

payments to struggling unemployed or 

underemployed homeowners to help 

them avoid foreclosure, provided the 

homeowner meets certain specific 

conditions. HUD may provide such 

relief through approved institutions, 

including lending institutions, or 

intermediaries designated by HUD. HUD 

is also authorized to allow assistance 

under this program to be administered 

by a State that has an existing program 

that is determined by HUD to provide 

substantially similar assistance to 

homeowners. 

§ 2700.5 Definitions. 

For purposes of this part, the 

following terms are defined as follows: 

Act means the Emergency 

Homeowners’ Relief Act, title I of the 

Emergency Housing Act of 1975 

(12 U.S.C. 2701), as amended by the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Pub. L. 111– 

203, approved July 21, 2010). 

Area Median Income (AMI) means the 

median family income for the 

metropolitan statistical area (MSA) or 

statewide nonmetropolitan area, as most 

recently determined and published by 

HUD, where the property meeting the 

eligibility requirements in § 2700.1 is 

located. 

Delinquent mortgage means a firstlien mortgage secured by property 

meeting the eligibility requirements in 

§ 2700.101, where the homeowner and 

holder of the delinquent mortgage have 

certified that circumstances, including 

delinquent payments of at least 3 

months, make it probable there will be 

a foreclosure and that the homeowner is 

in need of emergency mortgage relief. 

Emergency assistance includes, but is 

not limited to, an emergency mortgage 

relief loan, advance of credit, or 

emergency mortgage relief payment 

provided to an eligible homeowner, as 

authorized by the Act, and in 

accordance with the requirements of 

this part. 

Event refers to the involuntary 

unemployment or underemployment 

status of the homeowner due to adverse 

economic conditions or medical 

condition. See definition of involuntary 

unemployment or underemployment 

due to adverse economic conditions or 

adverse medical condition. 

Finance charge means the cost of 

credit as determined in 12 CFR 226.4, a 

section in Regulation Z of the Federal 

Reserve System’s regulations on Truth 

in Lending. 

Homeowner means an individual with 

a mortgage on the individual’s principal 

residence, in which the individual 

resides, and who meets the 

requirements of § 2700.10 and who is in 

need of emergency assistance pursuant 

to this part. 

HUD means the Department of 

Housing and Urban Development. 

Income means the cumulative annual 

adjusted gross income of the 

homeowner, co-makers, and co-signers 

on the note secured by the delinquent 

mortgage and the other mortgagors on 

the delinquent mortgage. 

Involuntary unemployment or 

underemployment due to adverse 

economic conditions or adverse medical 

condition means the status of a 

homeowner who was working, either as 

a wage or salaried worker or through 

self-employment, is currently 

involuntarily unemployed or 

underemployed due to adverse 

economic conditions or medical 

condition, and is unable to meet the 

homeowner’s monthly mortgage 

payments. 

Lender means a lending institution 

that provides an emergency mortgage 

relief loan or advance of credit insured 

under this part. 

Monthly income means one-twelfth of 

the income, as income is defined in this 

section. 

Monthly mortgage payment means the 

monthly amount of principal, interest, 

taxes, ground rents, hazard insurance, 

and mortgage insurance premiums due 

to be paid under a homeowner’s 

delinquent mortgage. 


jdjones on DSK8KYBLC1PROD with RULES2
Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 11951 

Mortgage means any mortgage, deed 

of trust, executor land sales contract, 

conditional sales contract, or other form 

of security and the obligation secured by 

a one- to four-family dwelling that is 

either real estate or a manufactured 

home. Mortgage includes a mortgage on 

a condominium unit and a security 

interest in stock in a housing 

cooperative. 

Mortgagee means a lending institution 

that is the holder of the delinquent 

mortgage. The mortgagee may be the 

same entity as the Lender. 

Secretary means the Secretary of 

Housing and Urban Development. 

Servicer means any entity which 

services an emergency loan made by 

HUD under this part. 

Servicing institution means any entity 

that services the delinquent mortgage. 

The servicing institution may also be 

the same entity as the Lender or 

Servicer. 

Term of monthly payments means a 

period of monthly payments provided 

under this part not to exceed 24 months. 

Eligible homeowners may receive 

assistance for up to 12 months, and in 

accordance with criteria established by 

HUD, and such assistance may be 

extended once for up to 12 additional 

months, but in no case may monthly 

payments under this part exceed 24 

months. The eligible homeowner may 

also receive assistance in an amount up 

to the statutory ceiling of $50,000, 

whichever occurs first. 

§ 2700.10 Determination of emergency. 

(a) The Secretary is authorized to 

provide emergency assistance under the 

Emergency Homeowners’ Loan Program 

when: 

(1) Funds have been explicitly 

appropriated or made available for this 

program and the statute making funding 

available directs the Secretary to 

commence making emergency 

assistance available to homeowners; or 

(2) The Secretary has announced that 

this program has been activated and 

provides the reasons for activation of 

this program in a document published 

in the Federal Register. 

(b) If the Emergency Homeowners’ 

Loan Program is activated pursuant to 

paragraph (a) of this section, HUD shall 

publish a document in the Federal 

Register announcing the activation of 

the program and inviting one or more 

categories of eligible institutions, as 

defined in § 2700.105, to participate in 

the Emergency Homeowners’ Loan 

Program, to provide such emergency 

assistance as HUD may designate from 

among the eligible types of emergency 

relief provided in § 2700.201, and 

provide such other information 

regarding participation in the program, 

as necessary and appropriate. 

Subpart B—Eligibility 

§ 2700.101 Eligible properties. 

(a) In order to qualify for an 

emergency assistance under this part, 

the property of the homeowner seeking 

assistance must: 

(1) Be a single-family residence in a 

one-to-four unit building, or a 

condominium or a housing cooperative 

or a manufactured home; 

(2) Be the principal residence of the 

homeowner, which means it is the 

residence where the homeowner 

resides; 

(3) Be subject to a delinquent 

mortgage, as defined in § 2700.5, but 

not, unless otherwise specified by HUD, 

subject to liens having a total 

outstanding principal balance, as 

specified by HUD; 

(4) Have flood insurance, pursuant to 

the National Flood Insurance Program, 

in an amount equal to at least the initial 

principal amount of the emergency loan, 

if the property is located in an area that 

has been identified by HUD at least one 

year before the origination of the 

emergency loan as an area having 

special flood hazards; and 

(5) Meet such other requirements as 

may be prescribed by HUD for reasons 

including, but not limited to, the 

particular economic circumstances in 

which emergency assistance is being 

made available, or the type of 

emergency assistance being made 

available. 

(b) A property that meets the 

requirements of paragraph (a) of this 

section is referred to as the mortgaged 

property. 

§ 2700.105 Eligible institutions. 

(a) Eligible lending institutions. (1) In 

order to participate in the Emergency 

Homeowners’ Loan Program as a lender 

or servicer, a lending institution must be 

approved as a mortgagee by the Federal 

Housing Administration in accordance 

with the applicable requirements in 24 

CFR part 203, and meet such other 

requirements as may be prescribed by 

HUD as necessary or appropriate for 

participation in the Emergency 

Homeowners’ Loan Program. 

(2) Approval of a lending institution 

pursuant to paragraph (a)(1) of this 

section may be withdrawn at any time 

by notice from HUD for the following 

reasons: 

(i) The transfer of an insured 

emergency mortgage relief loan or 

advance of credit to a nonapproved 

entity; 

(ii) The failure of a lending institution 

to submit the required annual audit 

report of its financial condition within 

75 days of the close of its fiscal year, or 

within such other period as may be 

specified by HUD; or 

(iii) The failure of a lending 

institution to comply with the 

regulations of this part, or such 

additional program policies or 

requirements as specified by HUD. 

Withdrawal of a lending institution’s 

approval shall not affect the insurance 

on the emergency mortgage relief loans 

or advances of credit accepted for 

insurance. 

(3) All approved lending institutions 

are responsible for servicing of 

emergency mortgage relief loans and 

advances of credit in accordance with 

acceptable mortgage practices of 

prudent lending institutions and 

pursuant to 24 CFR part 203. 

(b) Eligible participating 

organizations. HUD may delegate 

authority with respect to the processing 

of emergency mortgage relief payments 

as may be appropriate to facilitate the 

prompt and efficient implementation of 

assistance under the Emergency 

Homeowners’ Loan Program. 

(c) States with comparable programs. 

HUD is authorized to allow funding for 

the Emergency Homeowners’ Loan 

Program to be administered by a State 

that has an existing program that is 

determined by HUD to provide 

substantially similar assistance to 

homeowners. After such determination 

is made, any State that HUD authorizes 

to administer funding under this 

program shall not be required to modify 

its own program to comply with the 

provisions of this part. 

§ 2700.110 Eligible homeowners. 

In order to qualify for an emergency 

assistance under this part, the 

homeowner must: 

(a) Have a total pre-Event income that 

is equal to, or less than, 120 percent of 

the area median income (AMI). 

(b) Have incurred a substantial 

reduction of income as evidenced by 

current monthly income that is at least 

15 percent lower than the pre-Event 

income, as a result of involuntary 

unemployment or underemployment 

due to adverse economic or medical 

conditions, or such other reduction in 

income as may be specified by HUD. 

(c) Have a delinquent mortgage, as 

defined in § 2700.5; 

(d) Be financially unable at the time 

of application for emergency relief 

under this part to make full monthly 

mortgage payments; 

(e) Have a reasonable likelihood to 

resume full monthly mortgage 

payments, and repay the emergency 

assistance pursuant to the terms and 


jdjones on DSK8KYBLC1PROD with RULES2
11952 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

conditions under which the emergency 

assistance was made available to the 

homeowner. The standard for meeting 

this requirement is debt-to-income (DTI) 

ratio. The homeowner must have a backend ratio of below 55 percent (principal, 

interest, taxes, insurance, revolving and 

fixed installment debt divided by total 

monthly income), or such other DTI as 

may be specified by HUD. For this DTI 

calculation, income will be measured at 

the pre-Event level. 

(f) Have not received other emergency 

assistance pursuant to this part; 

(g) Have been notified that the 

mortgagee intends to foreclose; 

(h) Produce a certification from the 

mortgagee in which the homeowner also 

certifies that circumstances make it 

probable that the mortgagee will 

foreclose on the homeowner’s 

delinquent mortgage; and 

(i) Meet such other requirements as 

may be prescribed by HUD for reasons 

including, but not limited to, the 

particular economic circumstances in 

which emergency assistance is being 

made available, or the type of 

emergency assistance being made 

available. 

Subpart C—Emergency Assistance 

§ 2700.201 Types and terms of emergency 

assistance. 

(a) Types of emergency assistance. 

Emergency assistance may be provided 

to an eligible homeowner in the form of 

emergency mortgage relief loans and 

advances of credit, or in the form of 

emergency mortgage relief payments. In 

accordance with § 2700.205, the 

aggregate amount of assistance provided 

for any eligible homeowner shall not 

exceed $50,000 or extend beyond the 

term of monthly payments, as defined in 

§ 2700.5. 

(1) Emergency mortgage loans and 

advances. HUD is authorized, upon 

such terms and conditions as specified 

by HUD, to insure financial institutions, 

which HUD finds to be qualified by 

experience and facilities and approves 

as eligible for insurance, against losses 

that they may sustain as a result of 

providing emergency mortgage relief 

loans or advances of credit made under 

this part. 

(2) Emergency mortgage relief 

payments. (i) HUD is authorized to 

make emergency relief payments under 

such terms and conditions as HUD may 

prescribe. Emergency mortgage relief 

payments may be provided: 

(A) As payment of 100 percent of an 

eligible homeowner’s delinquent 

mortgage arrearages, which may include 

mortgage principal, interest, insurance, 

taxes, hazard insurance, ground rent, 

homeowners’ assessment fees or 

condominium fees, and foreclosurerelated legal fees and late payments, in 

accordance with such terms and 

conditions as prescribed by HUD; and 

(B) As monthly payments due on such 

delinquent mortgage, for up to a period 

not to exceed the term of monthly 

payments, as provided in § 2700.5. 

(ii) Such emergency mortgage relief 

payments may be repayable in the form 

of a declining balance, non-recourse, 

zero-interest, subordinate loan secured 

by the same property securing the 

delinquent mortgage, for a term of up to 

7 years. 

(3) Direct payments to mortgagees. 

HUD is authorized to make direct 

emergency mortgage relief payments to 

a mortgagee that elects not to participate 

in the Emergency Homeowners’ Loan 

program as an approved mortgagee on 

behalf of homeowners: 

(i) Whose mortgages are held by such 

mortgagee; and 

(ii) Who meet the requirements of 

§ 2700.110. 

(b) Terms and conditions of 

assistance. Emergency mortgage relief 

loans and advances of credit made and 

insured under this part, and emergency 

mortgage relief payments made under 

this part, shall be repayable by the 

homeowner upon such terms and 

conditions prescribed by HUD, except 

that: 

(1) The rate of interest on any 

emergency mortgage relief loan or 

advance of credit insured shall be fixed 

for the life of the emergency mortgage 

relief loan or advance of credit and shall 

not exceed the rate of interest that is 

generally charged for mortgages on 

single-family housing insured by the 

Federal Housing Administration under 

title II of the National Housing Act at 

the time such emergency mortgage relief 

loan or advance of credit is made; 

(2) No interest shall be charged on 

interest that is deferred on an 

emergency mortgage relief loan or 

advance of credit made under this part. 

In establishing rates, terms, and 

conditions for emergency mortgage 

relief loans or advances of credit, HUD 

shall take into account a homeowner’s 

ability to repay such emergency 

mortgage relief loan or advance of 

credit; 

(3) Any mortgage insurance premium 

charge or charges for any emergency 

mortgage relief loan or advance of credit 

made under this part shall not exceed 

an amount equivalent to one-half of one 

percent per annum of the principal 

obligation of such emergency mortgage 

relief loan or advance of credit 

outstanding at any one time; 

(4) Unless otherwise specified by 

HUD for a given fiscal year, the 

homeowner’s contribution to the 

monthly mortgage payment will be set 

at 31 percent of monthly income at the 

time of the application for assistance, 

but in no instance will such 

contribution to the monthly mortgage 

payment be less than $25 per month; 

(5) The homeowner may repay the 

emergency mortgage relief loan or 

advance of credit in full, without 

penalty, by lump sum or by installment 

payments at any time before the 

emergency mortgage relief loan or 

advance of credit becomes due and 

payable; and 

(6) With respect to the emergency 

mortgage relief payments repayable in 

the form of a declining balance, nonrecourse, zero-interest, subordinate loan 

as described § 2700.201(a)(2), no 

payment shall be due by the homeowner 

during the term of the loan so long as 

the homeowner remains current in his 

or her monthly homeowner contribution 

payments on the delinquent mortgage. If 

the homeowner meets this requirement, 

the balance due shall decline by such 

percentage as may be designated by 

HUD, until the loan is fully satisfied. 

(c) Termination of emergency 

assistance. Emergency assistance 

provided to a homeowner shall be 

terminated and the homeowner shall 

resume full responsibility for meeting 

the first mortgage payments if any of the 

following occur: 

(1) The maximum loan amount 

($50,000) has been provided to the 

homeowner; 

(2) The homeowner fails to report 

changes in employment status or 

income within 15 days of the change; 

(3) The homeowner’s income 

increases to 85 percent or more of its 

pre-Event income level, or such other 

percentage as may be prescribed by 

HUD; 

(4) The homeowner sells the 

mortgaged property or refinances the 

mortgaged property for cash-out; 

(5) The homeowner defaults on the 

monthly homeowner’s contribution 

payment on the delinquent mortgage; 

(6) The homeowner has exhausted the 

full term of monthly payments, as 

defined in § 2700.5; or 

(7) Such other event as may be 

specified by HUD. 

(d) Deferral of commencement of 

repayment. HUD may authorize the 

deferral of the commencement of the 

repayment of an emergency mortgage 

relief loan or advance of credit or 

emergency mortgage relief payments 

made under this part until one year 

following the date of the last 

disbursement of the proceeds of the 


jdjones on DSK8KYBLC1PROD with RULES2
Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 11953 

emergency mortgage relief loan or 

advance of credit or emergency 

mortgage relief payments, or for such 

longer period as HUD determines would 

further the purpose of the Emergency 

Homeowners’ Loan Program. 

§ 2700.205 Emergency assistance amount. 

(a) Emergency assistance to an eligible 

homeowner may be made available in 

an amount up to the amount of the 

principal, interest, taxes, ground rents, 

hazard insurance, and mortgage 

insurance premiums due under the 

homeowner’s mortgage and such other 

costs as may be specified by HUD. The 

amount of emergency assistance 

provided to the homeowner shall be an 

amount that is determined by HUD to be 

reasonably necessary to supplement 

such amount as the homeowner is 

capable of contributing toward the 

homeowner’s delinquent first mortgage 

payments, except that the aggregate 

amount of emergency relief provided to 

any homeowner shall not exceed 

$50,000, including any fees allowed 

under §§ 2700.310(a) and 2700.415(a). 

(b) Arrearage payments and monthly 

assistance payments may be made either 

with the proceeds of an insured 

emergency mortgage relief loan or 

advance of credit or with emergency 

mortgage relief payments for up to full 

term of the monthly payments, as 

defined in § 2700.5. 

(c) Unless otherwise authorized by 

HUD, the lender or servicer shall not 

approve an emergency mortgage loan or 

advance of credit when the outstanding 

balance, including delinquent interest, 

of the delinquent mortgage when added 

to the other liens against the mortgaged 

property, plus the maximum emergency 

mortgage relief loan that may be 

advanced to the homeowner under this 

part, exceeds the value of the mortgaged 

property. (In determining the value of 

the property, the lender or servicer may 

rely upon previously obtained 

appraisals or other determinations of 

value of the property and need not 

obtain a current appraisal.) 

§ 2700.210 Finance charges. 

The maximum permissible finance 

charge, exclusive of fees and charges as 

provided in §§ 2700.310, and 2700.415, 

which may directly or indirectly be paid 

to or collected by the lender or the 

servicer in connection with an 

emergency mortgage relief loan or 

advance-of-credit transaction, shall not 

exceed simple interest on the 

outstanding principal balance at the 

annual interest rate for FHA-insured 

home mortgages at such time the 

emergency mortgage relief loan or 

advance of credit is originated. 

Additionally, no points or discounts of 

any kind may be assessed or collected 

in connection with an emergency 

mortgage relief loan or advance-of-credit 

transaction. 

Subpart D—Mortgage Insurance 

§ 2700.301 Loan applications. 

(a) Lending institutions approved by 

HUD for participation in the Emergency 

Homeowners’ Loan Program are 

authorized to accept, process, and 

approve applications for emergency 

mortgage relief loans or advances of 

credit under this part under such terms 

and conditions as HUD may prescribe. 

(b) An approved lender may make an 

emergency mortgage relief loan or 

advances of credit on the terms 

specified in this part if the lender is 

satisfied that the application meets all of 

the relevant requirements of this part. 

The lender shall prepare a note, loan 

agreement, if any, and mortgage as 

required by HUD, which the lender 

shall record against the property 

securing the delinquent mortgage upon 

the execution of those documents. 

(c) Except as may be otherwise 

specified by HUD, on the last working 

day of the month during which an 

emergency mortgage relief loan or 

advance of credit is closed, the lender 

shall submit to HUD an application for 

an insured emergency mortgage relief 

loan or advance of credit on such form 

as prescribed by HUD, signed by the 

mortgagor and holder of the mortgage 

and that certifies that: 

(1) The lender, homeowner, and 

property meet the eligibility 

requirements of this part; 

(2) Circumstances (such as the volume 

of delinquent loans in the investor’s 

portfolio likely to remain uncured) 

make it probable that there would be a 

foreclosure of the delinquent mortgage if 

the emergency mortgage relief were not 

provided to the homeowner; 

(3) The homeowner is in need of such 

emergency assistance and the mortgagee 

has indicated to the homeowner its 

intention to foreclose on the delinquent 

mortgage; and 

(4) The first disbursement of the 

principal amount of the emergency 

mortgage relief loan or advance of credit 

has been paid or credited to the 

homeowner’s account with the servicing 

institution. 

§ 2700.305 Conditions of insurance. 

(a) When the requirements of this part 

have been met, the lender’s mortgage 

insurance coverage under its mortgage 

insurance contract will apply to a 

particular loan as of the date of closing, 

if the lender has not exceeded the 

mortgage insurance authority allocation 

which HUD has given the lender. 

(b) From the effective date of the 

emergency mortgage relief loan or 

advance of credit until the termination 

of the insurance with respect to that 

loan, the lender shall be bound by the 

provisions of this part as such 

provisions relate to the emergency 

mortgage relief loan or advance of 

credit. 

§ 2700.310 Fees. 

(a) The lender may collect from the 

homeowner during the year following 

the origination of the emergency 

mortgage relief loan or advance of credit 

the following fees or charges in 

conjunction with providing the 

emergency mortgage relief loan or 

advance of credit: 

(l) A charge to compensate the lender 

for expenses incurred in originating and 

closing the emergency relief loan, 

including preparation of a note, loan 

agreement, if any, and a mortgage in a 

form satisfactory for recordation, the 

total charge not to exceed such amount 

as specified by HUD; 

(2) Actual amounts charged by State 

or local governments or government 

officials for recording fees and recording 

taxes or other charges incident to 

making the emergency relief loan or 

advance of credit; 

(3) An amount equal to the annual 

premium for flood insurance required 

by § 2700.101(a)(4) (the lender shall pay 

the homeowner’s flood insurance 

premium for that year to the extent it 

collects such an amount); and 

(4) An amount equal to the annual 

mortgage insurance premium required 

under § 2700.315. 

(b) Subsequent to the year following 

the origination of the emergency 

mortgage relief loan or advance of credit 

and up to the termination of mortgage 

insurance under § 2700.325, the lender 

may collect from the homeowner the 

following fees and charges in 

connection with the emergency relief 

loan: An amount equal to the mortgage 

insurance premium required under 

§ 2700.315. 

§ 2700.315 Insurance premium. 

(a) At such times as may be prescribed 

by HUD, the participating lender shall 

pay to HUD a mortgage insurance 

premium equal to one-half of one 

percent of the average outstanding 

balance of the emergency mortgage 

relief loan or advance of credit, during 

the previous calendar year, of all 

emergency mortgage relief loans or 

advances of credit that the lender held 

or serviced during that period pursuant 

to this part. 


jdjones on DSK8KYBLC1PROD with RULES2
11954 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

(b) With respect to the payment 

provided for in paragraph (a) of this 

section, the lender shall submit a 

breakdown of the mortgage insurance 

premium in the form prescribed by 

HUD. 

(c) If a mortgage securing an 

emergency mortgage relief loan or 

advance of credit is sold, assigned, or 

pledged pursuant to § 2700.350, any 

adjustments of the mortgage insurance 

premium already paid in connection 

with a mortgage securing an emergency 

mortgage relief loan or advance of credit 

shall be made by and between the 

lenders, except that any unpaid 

installments of the mortgage insurance 

premium shall be paid to HUD by the 

purchasing lender. 

(d) There shall be no refund or 

abatement of any portion of the 

insurance premium except when the 

mortgage insurance premium relates to 

an emergency mortgage relief loan or 

advance of credit found to be ineligible. 

However, no refund shall be made 

unless a claim is denied by HUD or the 

ineligibility is reported by the lender 

promptly upon discovery and an 

application for refund is made. In no 

event shall charges be refunded when 

the application for refund is not made 

until after the emergency mortgage relief 

loan or advance of credit is paid in full. 

§ 2700.320 Servicing. 

Servicing functions for the emergency 

mortgage relief loan or advance of credit 

during the period that the emergency 

loan or advance is insured shall be 

performed by the lender or the servicing 

institution acting for the lender. The 

lender is responsible for proper 

servicing, even though the actual 

servicing is not performed by the lender. 

§ 2700.325 Termination of mortgage 

insurance. 

The mortgage insurance coverage and 

the insured lender’s obligation to remit 

mortgage insurance premiums to HUD 

with respect to an emergency mortgage 

relief loan or advance of credit shall be 

terminated upon whichever of the 

following first occurs: 

(a) The emergency mortgage relief 

loan or advance of credit is paid in full; 

(b) The lender acquires the mortgaged 

property securing the emergency 

mortgage relief loan or advance of credit 

and notifies HUD that no claim for 

insurance benefits has been or will be 

made; 

(c) The homeowner and the lender 

jointly request termination; or 

(d) The lender files an insurance 

claim pursuant to § 2700.335. 

§ 2700.330 Default. 

(a) If the homeowner fails to make a 

scheduled payment or perform any 

other obligation required for the type of 

emergency assistance provided under 

this part, the homeowner shall be 

deemed to be in default. 

(b) For purposes of this subpart, the 

date of default shall be the earliest of: 

(1) 30 days after the first day the 

homeowner is delinquent on the 

mortgage securing the emergency 

mortgage relief loan or advance of 

credit, if the delinquency remains 

uncorrected; 

(2) The date the property securing the 

emergency mortgage relief loan or 

advance of credit is sold before full 

repayment of the emergency loan or 

advance of credit; and 

(3) The date a lien superior to that 

securing the emergency mortgage relief 

loan or advance of credit is foreclosed. 

(c) If, after default and prior to the 

foreclosure of the mortgage securing the 

emergency mortgage relief loan or 

advance of credit, the homeowner cures 

the default, the emergency loan or 

advance of credit shall be treated as if 

a default had not occurred, provided the 

homeowner pays the lender for any 

expenses the lender incurred in 

connection with the lender’s attempt to 

collect on the emergency mortgage relief 

loan or advance of credit. 

§ 2700.335 Claims. 

(a) Claims for mortgage insurance for 

reimbursement for loss on an emergency 

mortgage relief loan or advance of credit 

shall be made in such form and provide 

such information as specified by HUD. 

(b) Claims may be filed upon the 

homeowner’s default on the emergency 

mortgage relief loan or advance of 

credit. 

(c) When the homeowner defaults on 

the emergency mortgage relief loan or 

advance of credit, the lender may elect 

to: 

(1) Proceed against the mortgage 

securing the emergency mortgage relief 

loan or advance of credit or attempt to 

collect on the note and then make a 

claim under its insurance contract if 

there is any net loss, or 

(2) Make a claim under its mortgage 

insurance contract without proceeding 

against the security or the note. 

(d) Except as may be otherwise 

specified by HUD, mortgage insurance 

claims shall be filed on the last working 

day of the month, no later than 90 days 

after the date of default, unless the 

lender proceeds against the mortgage 

securing the emergency relief loan or 

advance of credit, in which case the 

filing shall be no later than one year 

after the date of default, or such other 

time period as approved by HUD. If at 

the time of default or at any time 

subsequent to the default, a person 

primarily or secondarily liable for the 

repayment of a loan is a person in 

‘‘military service’’, as such term is 

defined in the Servicemembers Civil 

Relief Act of 2003 (Pub. L. 108–189, 

approved December 19, 2003) (formerly 

known as Soldier’s and Sailor’s Civil 

Relief Act of 1940) (50 U.S.C. app. 501– 

594), the lender shall refrain from 

instituting foreclosure proceedings 

during the period in which the 

servicemember is in military service and 

3 months thereafter and that period 

shall be excluded in computing the time 

within which a claim for insurance 

benefits under this subpart may be 

made. 

(e) An insured lender will be 

reimbursed for its losses on emergency 

mortgage relief loans and advances of 

credit made in accordance with this 

part, in an amount equal to 90 percent 

of the sum of the following: 

(1) The unpaid principal amount of 

the emergency mortgage relief loan or 

advance of credit less the amount 

recovered; 

(2) The uncollected interest earned up 

to the date of claim; 

(3) Uncollected court costs, including 

fees paid for issuing, serving, and filing 

summonses; 

(4) Attorney’s fees actually paid, not 

exceeding the lesser of: 

(i) 25 percent of the amount collected 

by the attorney on the defaulted note, or 

(ii) 15 percent of the balance due on 

the note; and 

(5) Expenses actually incurred in 

recording assignments of mortgages to 

the United States of America, up to such 

amount as specified by HUD. 

(f) The note and any mortgage held or 

judgment taken by the claimant must be 

assigned in its entirety and if any claim 

has been filed in bankruptcy, 

insolvency, or probate proceedings, 

such claim shall be likewise assigned to 

the United States of America. The 

assignment shall be in the form 

approved by HUD. 

§ 2700.340 Payment of insurance benefits. 

Upon receipt of a claim for insurance 

benefits that meets the requirements of 

§ 2700.335 and the other provisions of 

this part, HUD shall make a payment of 

insurance benefits in cash to the 

claimant in an amount equal to the 

amount specified in § 2700.335(e). 

§ 2700.345 Administrative reports and 

examinations. 

At any time, HUD may call upon an 

insured lender for such reports as are 

deemed to be necessary in connection 


jdjones on DSK8KYBLC1PROD with RULES2
Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 11955 

with the regulations of this part and 

may inspect the books or accounts of the 

lender as they pertain to the emergency 

mortgage relief loans or advances of 

credit that are insured pursuant to this 

subpart. 

§ 2700.350 Sale, assignment, and pledge 

of insured loan. 

(a) No lender may sell or otherwise 

dispose of any insured emergency 

mortgage relief loan or advance of credit 

except pursuant to this section. 

(b) An insured emergency mortgage 

relief loan or advance of credit may be 

sold to a lending institution eligible 

under § 2700.105. Upon such sale, both 

the seller and the buyer shall notify 

HUD within 30 days of the date of sale. 

(c) When an insured emergency 

mortgage relief loan or advance of credit 

is sold to another lending institution 

eligible under § 2700.105, the buyer 

shall thereupon succeed to all the rights 

and become bound by all the obligations 

of the seller under the contract of 

insurance under this part, and the seller 

shall be released from its obligations 

under the contract of insurance. 

(d) An assignment, pledge, or transfer 

of an insured emergency mortgage relief 

loan or advance of credit not 

constituting an actual transfer of legal 

title may be made by the lender to 

another eligible lending institution, 

subject to the following conditions: 

(1) The assignor, pledgor, or transferor 

shall remain the lender for purposes of 

the contract of insurance under this 

part. 

(2) HUD shall have no obligation to 

recognize or deal with any party other 

than that lender with respect to the 

rights, benefits, and obligations of the 

lender under the contract of insurance. 

Notice to or approval of HUD is not 

required in connection with 

assignments, pledges, or transfers 

pursuant to this subpart. 

Subpart E—Direct Loans 

§ 2700.401 Participation by lending 

institutions. 

A lending institution eligible under 

§ 2700.105 is authorized, except as may 

be otherwise prescribed by HUD, to 

accept, process, and approve 

applications for direct loans under this 

subpart in the form specified. That 

authority includes making 

determinations relating to the eligibility 

of the direct loan, homeowner, and 

property, pursuant to the provisions of 

this part. Direct loans, however, may be 

made pursuant to this part only when 

the investor cannot make an emergency 

loan under subpart D of this part for 

good cause, as determined by HUD. 

§ 2700.405 Application for loans. 

(a) The agreement to process an 

application for a direct loan shall 

constitute an acceptance of the lending 

institution of the responsibility to act as 

the servicer of HUD with respect to that 

particular application. The servicer 

shall make a loan on behalf of HUD on 

the terms specified in subpart C of this 

part if the lending institution is satisfied 

that the application meets all of the 

requirements of this part. 

(b) The servicer shall prepare a note, 

loan agreement, if any, and mortgage in 

the form specified in § 2700.201. The 

servicer shall record the mortgage upon 

the closing of the loan. The servicer 

shall make the first advance of the loan, 

as provided for in § 2700.201(d), using 

its own funds. 

(c) On the last working day of the 

month during which the loan is closed, 

the servicer shall submit to HUD a copy 

of the application signed by the agent 

and the homeowner certifying that: The 

agent, homeowner, and property qualify 

under subpart B of this part; 

circumstances (such as the volume of 

delinquent loans in the investor’s 

portfolio likely to remain uncured) 

make it probable that there would be a 

foreclosure if emergency mortgage relief 

were not given; the homeowner is in 

need of such relief; the investor has 

indicated to the homeowner its 

intention to foreclose; and the first 

advance of the emergency loan has been 

paid or credited to the homeowner’s 

account with the servicing institution. 

§ 2700.410 Transmittal of funds. 

(a) When the requirements of this part 

have been met, HUD will transmit to the 

servicer, pursuant to the monthly 

accounting prescribed in § 2700.420, the 

emergency loan proceeds, as long as the 

agent has not exceeded the lending 

authority allocation that HUD has given 

the servicer pursuant to § 2700.10(c). 

(b) When the investor is the servicer, 

the transmittal of funds under this 

section shall be conditioned upon the 

investor’s agreement, for a period up to 

one month after the last advance under 

the emergency mortgage relief loan, to 

refrain from instituting foreclosure 

proceedings against the homeowner, as 

long as the amount delinquent at the 

time of the origination of the emergency 

mortgage relief loan, excluding interest 

thereon, does not increase, unless 

HUD’s prior approval is obtained. 

(c) From the processing of the 

application until the satisfaction of the 

debt or the final accounting pursuant to 

§ 2700.435, the servicer shall be bound 

by the provisions of this part with 

respect to a particular direct loan. 

§ 2700.415 Fees. 

(a) The servicer may collect from the 

homeowner during the year following 

the origination of the emergency loan 

the following fees or charges in 

conjunction with providing the 

emergency loan: 

(1) A charge to compensate the 

servicer for expenses incurred in 

originating and closing the emergency 

mortgage relief loan, including 

preparation of a note, loan agreement, if 

any, and a mortgage in a form 

satisfactory for recordation, the total 

charge not to exceed such amount as 

may be specified by HUD; 

(2) Actual amounts charged by State 

or local governments or government 

officials for recording fees and recording 

taxes or other charges incident to 

making the emergency loan; 

(3) An amount equal to the annual 

premium for flood insurance required 

by § 2700.101(c) (the servicer shall pay 

the homeowner’s flood insurance 

premium for that year to the extent it 

collects such an amount); and 

(4) An amount equal to the annual 

premium required under § 2700.420(d). 

(b) Subsequent to the year following 

the origination of the emergency 

mortgage relief loan and up to the final 

accounting on the emergency mortgage 

relief loan under § 2700.435, the 

servicer may collect from the 

homeowner the fees and charges as 

provided in this section. 

§ 2700.420 Servicing. 

(a) Servicing functions during the 

period that the emergency mortgage 

relief loan is outstanding shall be 

performed by the servicer. 

(b) On the same day each month 

while the servicer is servicing 

emergency mortgage relief loans for 

HUD, the servicer shall submit a 

monthly accounting, in the form 

prescribed by HUD, for all of the 

emergency mortgage relief loans that it 

services. The accounting shall list the 

amount of funds that it advanced under 

emergency mortgage relief loans during 

the previous calendar month. In 

addition, the accounting shall list the 

amount paid to the servicer under the 

emergency mortgage relief loans 

serviced by the servicer during the 

previous calendar month. 

(c) If, pursuant to the monthly 

accounting, the amount HUD owes the 

servicer exceeds the amount the servicer 

owes HUD, HUD shall remit the 

difference to the servicers, as long as 

HUD finds the accounting in order. If, 

pursuant to the monthly accounting, the 

amount the servicer owes HUD exceeds 

the amount HUD owes the servicer, the 

servicer shall remit the difference when 


jdjones on DSK8KYBLC1PROD with RULES2
11956 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

the servicer submits the monthly 

accounting to HUD. 

(d) At such times as may be 

prescribed by HUD, the servicer, in 

addition to making its monthly 

accounting, shall pay to HUD a 

premium equal to one-half of one 

percent of the average outstanding 

balance during the previous calendar 

year of all the emergency mortgage relief 

loans it serviced during that period. 

That payment shall be accompanied by 

a breakdown of the premium in the form 

prescribed by HUD. 

§ 2700.425 Default. 

(a) If the homeowner fails to make any 

payment or to perform any other 

obligation under the mortgage securing 

the emergency mortgage relief loan, the 

homeowner shall be deemed to be 

delinquent on such loan. 

(b) For purposes of this subpart, the 

date of default shall be the earliest of: 

(1) 30 days after the first day the 

homeowner is delinquent on the 

emergency mortgage relief loan, if the 

delinquency remains uncorrected: 

(2) The date the mortgaged property is 

sold before full repayment of the 

emergency mortgage relief loan; and 

(3) The date a lien superior to that 

securing the emergency mortgage relief 

loan is foreclosed. 

(c) If, after default and prior to the 

foreclosure of the mortgage securing the 

emergency mortgage relief loan, the 

homeowner cures the default, the 

emergency mortgage relief loan shall be 

treated as if the default had not 

occurred, provided the homeowner pays 

the servicer for any expenses the 

servicer incurred in connection with the 

servicer’s attempt to collect on the loan. 

§ 2700.430 Collection. 

(a) If a homeowner defaults on an 

emergency mortgage loan, the servicer 

shall elect: 

(1) To wait while the Department of 

Justice proceeds against the mortgage 

securing the emergency mortgage relief 

loan or attempts to collect on the note, 

and then to make an accounting and 

payment to HUD, as provided in 

§ 2700.435, or 

(2) To make an accounting and 

payment, as provided in § 2700.435, 

without waiting while the Department 

of Justice proceeds against the mortgage 

or note. 

(b) If pursuant to paragraph (a) of this 

section, the servicer elects to make an 

accounting without waiting while the 

Department of Justice proceeds against 

the mortgage or note, the servicer at the 

time of that accounting will have the 

option of purchasing the emergency 

loan and underlying mortgage for a 

price equal to 0.5 times the unpaid 

principal balance. 

§ 2700.435 Payment to HUD. 

(a) Before the expiration of the period 

of 90 days after the date of default, or 

such other time period as HUD 

approves, the servicer shall transmit to 

HUD on the last working day of the 

month the complete credit and 

collection file pertaining to the 

emergency mortgage relief loan. 

(b) At the same time the servicer 

makes the transmittal as provided in 

paragraph (a) of this section, it shall 

share the loss on the emergency 

mortgage relief loan by making a 

payment to HUD in an amount equal to 

10 percent of the sum of: 

(1) The unpaid principal amount of 

the emergency mortgage relief loan, less 

the amount recovered; and 

(2) The uncollected interest earned up 

to the date of the final accounting. 

Accompanying that payment shall be a 

final accounting of the emergency 

mortgage relief loan, in the form 

specified by HUD, and the note and 

mortgage executed in connection with 

the emergency mortgage relief loan. 

(c) Notwithstanding the provisions of 

paragraph (b) of this section, in the 

event that the aggregate loss borne by 

HUD reaches such percent, as specified 

in the Federal Register document 

activating the Emergency Homeowners’ 

Loan Program, of the aggregate amount 

advanced by the servicer on behalf of 

HUD under this subpart, the servicer 

shall bear the burden of any loss in 

excess of that such percent by making 

an appropriate payment to HUD within 

the time period specified in paragraph 

(a) of this section. 

(d) If at the time of default or at any 

time subsequent to default, a person 

primarily or secondarily liable for the 

repayment of an emergency loan is a 

person in ‘‘military service’’, as such 

term is defined in the Servicemembers 

Civil Relief Act of 2003 (Pub. L. 108– 

189, approved December 19, 2003) 

(formerly known as Soldier’s and 

Sailor’s Civil Relief Act of 1940) (50 

U.S.C. app. 501–594), the period the 

servicemember is in military service and 

3 months thereafter and that period 

shall be excluded in computing the time 

within which an accounting and 

payment are to be made pursuant to 

paragraph (a) of this section. 

§ 2700.440 Administrative report and 

examinations. 

HUD may at any time call for a report 

from any servicer on the delinquency 

status of the emergency mortgage relief 

loans serviced by the servicer on behalf 

of HUD or call for such reports as may 

be deemed to be necessary in 

connection with the provisions of this 

part, or HUD may inspect the books or 

accounts of the servicer as they pertain 

to those emergency mortgage relief 

loans. 

Dated: February 28, 2011. 

David H. Stevens, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. 2011–4816 Filed 3–3–11; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9515] 

RIN 1545–BH20 

Guidance Under Section 1502; 

Amendment of Matching Rule for 

Certain Gains on Member Stock 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

regulations concerning the treatment of 

certain intercompany gain with respect 

to stock owned by members of a 

consolidated group. These regulations 

provide for the redetermination of 

intercompany gain as excluded from 

gross income in certain transactions 

involving stock transfers between 

members of a consolidated group. The 

temporary regulations contained in this 

document are solely for the purpose of 

retaining the portion of the existing 

temporary regulations that were in the 

same temporary regulation section but 

that are not being promulgated as final 

regulations at this time. These 

regulations affect corporations filing 

consolidated returns. 

DATES: Effective Date: These regulations 

are effective on March 4, 2011. 

Applicability Date: Section 1.1502– 

13(c)(6)(ii)(C), (c)(6)(ii)(D), and (c)(7)(ii), 

Examples 16 and 17 apply with respect 

to items taken into account on or after 

March 4, 2011. 

FOR FURTHER INFORMATION CONTACT: John 

F. Tarrant (202) 622–7790 or Lawrence 

M. Axelrod, (202) 622–7713 (not tollfree numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

On March 7, 2008, the IRS and the 

Treasury Department published 

temporary regulations § 1.1502–13T. See 


jdjones on DSK8KYBLC1PROD with RULES2