Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Notices 71723 

Authority: The Paperwork Reduction Act 

of 1995, 44 U.S.C. Chapter 35, as amended. 

Dated: November 18, 2010. 

Colette Pollard, 

Departmental Reports Management Officer, 

Office of the Chief Information Officer. 

[FR Doc. 2010–29653 Filed 11–23–10; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5440–N–01] 

Policies and Procedures Pertaining to 

Changes in Listing Brokers 

Participating in the Federal Housing 

Administration (FHA) Management and 

Marketing III Program 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Notice. 

SUMMARY: Today’s Federal Register 

notice describes how duly licensed real 

estate brokers may participate as Listing 

or Selling brokers under FHA’s 

Management and Marketing III (M&M 

III) program. All brokers may participate 

as Selling brokers. Brokers that wish to 

list HUD’s Real Estate Owned (REO) 

properties, however, must be selected as 

a Listing broker by HUD’s Asset 

Manager (AM) vendors. HUD will pay a 

commission of up to six percent to be 

split evenly between ‘‘Listing’’ and 

‘‘Selling’’ brokers as is usual and 

customary in the real estate market. 

DATES: Participation by all brokers in 

the M&M III program announced in this 

notice shall be in effect from the date of 

publication of this notice through May 

31, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Vance T. Morris, Director, Office of 

Single Family Asset Management, 

Department of Housing and Urban 

Development, 451 7th Street, SW., 

Room 9172, Washington, DC 20410; 

telephone number 202–708–1672 (this 

is not a toll-free telephone number). 

Persons with hearing or speech 

impairments may access this number 

via TTY by calling the toll-free Federal 

Information Relay Service at 800–877– 

8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Management and Marketing Program 

The Federal Housing Administration 

(FHA) administers the single-family 

mortgage insurance program. FHA 

insures approved lenders against the 

risk of loss on properties obtained with 

FHA insured financing. In the event of 

a default on an FHA insured loan, the 

lender acquires title to the property by 

foreclosure, a deed-in-lieu of 

foreclosure, or other acquisition 

method, files a claim for insurance 

benefits and conveys the property to 

HUD. As a result of acquisitions through 

the mortgage insurance program and 

other programs, HUD has a need to sell 

a sizable inventory of single-family 

homes, making HUD the largest single 

seller of real estate in the United States. 

In fiscal years 2008 and 2009, the 

Department sold 46,333 and 49,385 

single-family homes, respectively. 

Since 1999, HUD has outsourced the 

disposition of its REO inventory to 

private sector contractors under the 

Management and Marketing (M&M) 

Program. In June of 2010, HUD awarded 

contracts under the third generation of 

M&M. Under the previous generations 

of M&M contracts, HUD contracted with 

a single entity to provide all of the 

administrative, program support, 

management and marketing services 

throughout the United States, the 

Caribbean, Guam and the Northern 

Marianna Islands. Under the M&M III 

program, HUD developed a disposition 

structure for its REO inventory that will 

streamline its operations, capitalize on 

the expertise of its potential vendors/ 

contractors, and provide flexibility to 

meet changing market conditions in the 

REO industry. 

One change is that, beginning June 1, 

2010, HUD has contracted with AM 

vendors who are responsible for the 

marketing and selling of HUD REO 

properties. Multiple AM vendors have 

been contracted to market HUD-owned 

properties within their selected contract 

area within each geographic 

Homeownership Center (HOC) area. AM 

vendors are required to use the services 

of local real estate professionals, whose 

primary place of business is within 

reasonable proximity to the listed 

property, including small and small 

disadvantaged businesses, to list 

properties for sale and to allow all 

brokers, regardless of their participation 

in a Multiple Listing Service, an equal 

opportunity to show and sell HUDowned properties. Local listing brokers 

will be used to ensure wide market 

exposure for HUD–REO Properties. 

Under the new M&M III program, HUD 

will pay a commission of up to six 

percent to be split evenly between 

Listing and Selling brokers, as is usual 

and customary in the real estate market. 

This is a change from previous M&M 

programs where listing brokers 

contracted with the M&M contractors 

and the M&M contractors were 

responsible for paying the listing 

brokers. The commission paid to Listing 

and Selling brokers will be made on the 

form HUD–1, Settlement Statement. 

AM vendors are responsible for 

selecting, managing, and overseeing 

listing brokers who participate in the 

M&M III program. Brokers that wish to 

participate as either listing or selling 

brokers in the M&M III program must 

register for, and receive a Name Address 

Identification Number (NAID) before 

they can either list or sell HUD 

properties. Brokers who already have a 

NAID do not need to apply for a new 

NAID in order to list HUD REO 

properties but must be selected by the 

AM vendor as a listing broker. Brokers 

must also be properly licensed in the 

geographic areas for which they want to 

list properties for sale. 

B. How To Register for an NAID 

Brokers may register for and receive 

an NAID by completing and submitting 

a form SAMS–1111. The form SAMS– 

1111 can be found at http://www.hud.

gov/offices/adm/hudclips/forms/

samsforms.cfm. Completed forms and 

supporting documentation must be sent 

to the HOC jurisdiction for the 

geographic area where the broker will 

list a property. HOC addresses are as 

follows: 

Atlanta HOC: U.S. Dept. of HUD, 

Atlanta Homeownership Center, 40 

Marietta Street, Atlanta, GA 30303– 

2806. 

Denver HOC: U.S. Dept. of HUD, 

Denver Homeownership Center, 

Program Support Division—21st Floor, 

1670 Broadway, Denver, CO 80202– 

4801. 

Philadelphia HOC: U.S. Dept. of HUD, 

Philadelphia Homeownership Center, 

The Wanamaker Building, 100 Penn 

Square East, Philadelphia, PA 19107– 

3389. 

Santa Ana HOC: U.S. Dept. of HUD, 

Santa Ana Homeownership Center, 160 

N. Stone Avenue, Tucson, AZ 85701. 

C. How To Contact an Asset Manager 

(AM) Vendor 

Listing Brokers who wish to 

participate in the M&M III program must 

contact an AM vendor responsible for 

the geographic areas where they want to 

list properties. A list of all AM vendors 

and the geographic areas for which they 

are responsible can be found at: 

http://www.hud.gov/offices/hsg/sfh/reo/ 

reohome.cfm. 

II. Paperwork Reduction Act Statement 

The information collection 

requirements contained in this 

document are pending the approval by 

the Office of Management and Budget 

(OMB) in accordance with the 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

71724 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Notices 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520), and have been 

assigned OMB control number 2502– 

0306. In accordance with the Paperwork 

Reduction Act, HUD may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection displays a 

currently valid control number. 

Dated: November 17, 2010. 

David H. Stevens, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. 2010–29654 Filed 11–23–10; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5459–N–01] 

Real Estate Settlement Procedures Act 

(RESPA): Solicitation of Information on 

Changes in Warehouse Lending and 

Other Loan Funding Mechanisms 

AGENCY: Office of General Counsel, 

HUD. 

ACTION: Notice. 

SUMMARY: HUD is considering issuing 

guidance under RESPA to address 

possible changes in warehouse lending 

and other financing mechanisms used to 

fund federally related mortgage loans 

that have occurred since HUD issued 

regulations specifically related to this 

area in 1992 and 1994. In order to assist 

HUD in determining whether such 

guidance is needed and to formulate 

such guidance, HUD is seeking 

information on how funding 

mechanisms have evolved in recent 

years, and especially on how warehouse 

lending currently operates within 

residential real estate mortgage 

transactions. 

HUD welcomes input from warehouse 

lenders, retail lenders, mortgage 

bankers, wholesale lenders, 

correspondent lenders, mortgage 

brokers, and others in the mortgage 

lending industry, as well as from 

federal, state, and local consumer 

protection and enforcement agencies; 

consumer groups; and other members of 

the public. Based on information 

received in response to this solicitation, 

HUD will decide what, if any, 

additional guidance is needed on the 

scope of RESPA as applied to current 

mortgage funding practices. 

DATES: Comment Due Date: December 

27, 2010. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this notice to the Regulations Division, 

Office of General Counsel, 451 7th 

Street, SW., Room 10276, Department of 

Housing and Urban Development, 

Washington, DC 20410–0500. 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 toll-free 

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: For 

legal questions, contact Paul S. Ceja, 

Assistant General Counsel for RESPA/ 

SAFE, telephone number 202–708– 

3137; or Peter S. Race, Assistant General 

Counsel for Program Compliance, 

telephone number 202–708–2350; 

Department of Housing and Urban 

Development, 451 7th Street, SW., 

Room 9262, Washington, DC 20410. For 

other questions, contact Barton Shapiro, 

Director, or Mary Jo Sullivan, Deputy 

Director, Office of RESPA and Interstate 

Land Sales, Office of Housing, 

Department of Housing and Urban 

Development, 451 7th Street, SW., 

Room 9158, Washington, DC 20410; 

telephone number 202–708–0502. These 

telephone numbers are not toll-free. 

Persons with hearing or speech 

impairments may access these numbers 

via TTY by calling the toll-free Federal 

Information Relay Service at 1–800– 

877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Due to the length of time since the 

issuance of regulations on the treatment 

and coverage of warehouse lending 

under RESPA (12 U.S.C. 2601–2617), 

HUD is reviewing the need to provide 

additional guidance in this area 

pursuant to its authority under section 

19 of RESPA (12 U.S.C. 2617). 

The requirements and prohibitions 

under RESPA apply to credit 

transactions that involve federally 

related mortgage loans. These mortgage 

loans include most purchase loans, 

assumptions, refinances, property 

improvement loans, and home equity 

lines of credit that are secured by liens 

placed on one- to four-family residential 

properties. The purposes of RESPA are, 

generally, to help consumers become 

better shoppers for settlement services 

and to eliminate kickbacks and referral 

fees that unnecessarily increase the 

costs of certain settlement services. 

To achieve its purposes, RESPA 

requires, in part, that borrowers receive 

disclosures at various times in the 

transaction. These disclosures explain 

the borrower’s loan, detail the costs 

associated with settlement, summarize 

servicing and escrow account practices, 

and describe affiliated business 

relationships among settlement service 

providers. In January 2010, major 

revisions to the Good Faith Estimate 

(‘‘GFE’’) and uniform settlement 

statement (‘‘HUD–1/1A’’) disclosure 

forms mandated in HUD’s RESPA 

regulations (24 CFR part 3500) took 

effect. 

RESPA also prohibits certain practices 

that increase the cost of settlement 

services. For example, section 8 of 

RESPA prohibits a person from giving or 

accepting anything of value for referrals 

of business incident to or part of a 

settlement service provided in a covered 

transaction. RESPA also prohibits a 

person from giving or accepting any part 

of a charge other than for services 

actually performed. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES