Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 81947 

information technology, e.g., permitting 

electronic submission of responses. 

HUD encourages interested parties to 

submit comment in response to these 

questions. 

C. Authority 

Section 3507 of the Paperwork 

Reduction Act of 1995, 44 U.S.C. 

Chapter 35. 

John Gibbs, 

Principal Deputy Assistant Secretary for 

Community Planning and Development. 

[FR Doc. 2020–27764 Filed 12–16–20; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–7024–N–55] 

30-Day Notice of Proposed Information 

Collection: Quality Control 

Requirements for Direct Endorsement 

Lenders; OMB Control No.: 2502–0600 

AGENCY: Office of the Chief Information 

Officer, HUD. 

ACTION: Notice. 

SUMMARY: HUD has submitted the 

proposed information collection 

requirement described below to the 

Office of Management and Budget 

(OMB) for review, in accordance with 

the Paperwork Reduction Act. The 

purpose of this notice is to allow for an 

additional 30 days of public comment. 

DATES: Comments Due Date: January 19, 

2021. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this proposal. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

Start Printed Page 15501PRAMain. Find 

this particular information collection by 

selecting ‘‘Currently under 30-day 

Review—Open for Public Comments’’ or 

by using the search function. 

FOR FURTHER INFORMATION CONTACT: 

Colette Pollard, Reports Management 

Officer, QDAM, Department of Housing 

and Urban Development, 451 7th Street 

SW, Washington, DC 20410; email 

Colette Pollard at Colette.Pollard@

hud.gov or telephone 202–402–3400. 

Persons with hearing or speech 

impairments may access this number 

through TTY by calling the toll-free 

Federal Relay Service at (800) 877–8339. 

This is not a toll-free number. Copies of 

available documents submitted to OMB 

may be obtained from Ms. Pollard. 

SUPPLEMENTARY INFORMATION: This 

notice informs the public that HUD is 

seeking approval from OMB for the 

information collection described in 

Section A. 

A. Overview of Information Collection 

Title of Information Collection: 

Quality Control Requirements for Direct 

Endorsement Lenders. 

OMB Approval Number: 2502–0600. 

Type of Request: Revision. 

Form Number: Not Applicable. 

Description of the need for the 

information and proposed use: Per 24 

CFR 202.8(3), a Direct Endorsement (DE) 

lender that sponsors third party 

originators (TPOs) is, ‘‘responsible to 

the Secretary for the actions of its third 

party originators or mortgagees in 

originating loans or mortgages, unless 

applicable law or regulation requires 

specific knowledge on the part of the 

party to be held responsible.’’ As a 

result, DE lenders are responsible for 

conducting quality control reviews on 

TPO originations of FHA-insured 

mortgage loans and ensuring that their 

Quality Control Plans contain this 

oversight provision. This creates an 

information collection burden on DE 

lenders, since these institutions must 

also conduct quality control on loans 

they originate and underwrite. 

DE lenders must conduct quality 

control reviews on a sample of loans 

that they originate or underwrite, 

including loans originated by TPOs. For 

the purposes of this information 

collection, it is assumed that the 

number of loans reviewed by each DE 

lender will comply with the Sample 

Size Standard and Sample Composition 

Standard described in HUD Handbook 

4000.1, Section V.A.3.a. 

In addition, under 24 CFR 203.255(c) 

and (e), HUD conducts both pre- and 

post-endorsement reviews of loans 

submitted for FHA insurance by DE 

lenders. As part of those reviews, the 

Secretary is authorized to determine if 

there is any information indicating that 

any certification or required document 

is false, misleading, or constitutes fraud 

or misrepresentation on the part of any 

party, or that the mortgage fails to meet 

a statutory or regulatory requirement. In 

order to assist the Secretary with this 

directive, FHA requires that lenders 

self-report all findings of fraud and 

material misrepresentation, as well any 

material findings concerning the 

origination, underwriting, or servicing 

of the loan that the lender is unable to 

mitigate or otherwise resolve. The 

obligation to self-report these findings 

creates an additional information 

collection burden on DE lenders. 

In accordance with the requirements 

of 5 CFR 1320.8(d), a Notice soliciting 

comments on this collection of 

information was initially published in 

the Federal Register on December 21, 

2010 (Volume 75, Number 244, page 

80066). At that time, FHA still allowed 

for loan correspondents to participate in 

its programs and had not yet 

transitioned to the use of TPOs. 

Therefore, FHA estimated information 

collection burdens based on the 

estimated used of TPOs by DE lenders. 

FHA has since revised these estimates 

with real data that captures TPO 

originations of FHA-insured singlefamily mortgage loans. This revision has 

increased the information collection 

burden associated with OMB Control 

Number 2502–0600. 

Respondents: Active Title II Direct 

Endorsement (DE) lenders. 

Estimated Number of Respondents: 

3,641. 

Estimated Number of Responses: 

118,952. 

Frequency of Response: Annually. 

Average Hours per Response: 25. 

Total Estimated Burdens: 29,738. 

B. Solicitation of Public Comment 

This notice is soliciting comments 

from members of the public and affected 

parties concerning the collection of 

information described in Section A on 

the following: 

(1) Whether the proposed collection 

of information is necessary for the 

proper performance of the functions of 

the agency, including whether the 

information will have practical utility; 

(2) The accuracy of the agency’s 

estimate of the burden of the proposed 

collection of information; 

(3) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and 

(4) Ways to minimize the burden of 

the collection of information on those 

who are to respond; including through 

the use of appropriate automated 

collection techniques or other forms of 

information technology, e.g., permitting 

electronic submission of responses. 

(5) ways to minimize the burden of 

the collection of information on those 

who are to respond, including the use 

of automated collection techniques or 

other forms of information technology. 

HUD encourages interested parties to 

submit comment in response to these 

questions. 

C. Authority 

Section 3507 of the Paperwork 

Reduction Act of 1995, 44 U.S.C. 

Chapter 35. 

Colette Pollard, 

Department reports Management Officer, 

Office of the Chief Information Officer. 

[FR Doc. 2020–27771 Filed 12–16–20; 8:45 am] 

BILLING CODE 4210–67–P