Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules and Regulations 14635

3. Section 200.1205 is amended by

revising the definition for ‘‘Consent

form’’, to read as follows:

§ 200.1205 Definitions.

* * * * *

Consent form means a consent form or

forms approved by HUD to be signed by

applicants and participants for the

purpose of obtaining employee income

information from employers; wage and

claim information from SWICAs; return

information from the Social Security

Administration (including wages, net

earnings from self-employment,

payments of retirement income as

referenced at section 6103(l)(7)(A) of the

Internal Revenue Code (26 U.S.C. 6103);

and return information for unearned

income (i.e., interest and dividends)

from the Internal Revenue Service as

referenced at section 6103(l)(7)(B) (26

U.S.C. 6103). Also, the consent forms

may authorize the collection of other

information from applicants or

participants to determine eligibility or

level of benefits as provided in 24 CFR

813.109 and 24 CFR 913.109. The

consent form expires after a limited

amount of time.

* * * * *

4. Section 200.1210 is amended by

revising paragraph (c), to read as

follows:

§ 200.1210 Consent by applicants and

participants.

* * * * *

(c) Consent form requirements. The

consent form required by this subpart V

shall contain, at a minimum, the

following:

(1) A provision authorizing HUD to

obtain from SWICAs any information or

materials necessary to complete or

verify the application for participation

and/or to maintain continued assistance

under a program referred to in

§ 200.1203;

(2) A provision authorizing HUD or

the owner (or mortgagee as applicable)

responsible for determining eligibility

for or level of assistance, to verify with

previous or current employers employee

income information pertinent to the

applicant’s or participant’s eligibility for

or level of assistance under a program

referred to in § 200.1203;

(3) A provision authorizing HUD to

request tax return information from the

Internal Revenue Service and the Social

Security Administration for the sole

purpose of verifying income information

pertinent to the applicant’s or

participant’s eligibility or level of

benefits; and

(4) A statement that the authorization

to release the information requested by

the consent form expires 15 months

after the consent form was signed.

(5) These requirements may be

contained in more than one consent

form.

PART 760—PROCEDURES FOR

OBTAINING WAGE AND CLAIM

INFORMATION ABOUT APPLICANTS

AND PARTICIPANTS IN HUD’S

SECTION 8 AND PUBLIC HOUSING

PROGRAMS FROM STATE WAGE

INFORMATION COLLECTION

AGENCIES (SWICAs)

5. The authority citation for part 760

is revised to read as follows:

Authority: 12 U.S.C. 1701q; 42 U.S.C.

1437a, 1437d, 1437ee, 1437f, 3535(d), and

3544.

6. Section 760.3 is amended by

revising paragraph (a), to read as

follows:

§ 760.3 Applicability.

(a) information to be covered by

consent forms. The information covered

by consent forms described in this part

involves wage and claim information

from SWICAs; and wages, net earnings

from self-employment, payments of

retirement income, and unearned

income as referenced at sections

6103(l)(7)(A) and 6103(l)(7)(B) of the

Internal Revenue Code (26 U.S.C. 6103).

In addition, consent forms may

authorize the collection of other

information as identified in 24 CFR

813.109(b) and 24 CFR 913.109(b) for

current verification procedures,

including requirements regarding

signing and submitting consent forms,

for the covered programs.

* * * * *

7. Section 760.5 is amended by

revising the definition for ‘‘Consent

form’’, to read as follows:

§ 760.5 Definitions.

* * * * *

Consent form means a consent form or

forms approved by HUD to be signed by

applicants and participants for the

purpose of obtaining employee income

information from employers; wage and

claim information from SWICAs; return

information from the Social Security

Administration (including wages, net

earnings from self-employment,

payments of retirement income as

referenced at section 6103(l)(7)(A) of the

Internal Revenue Code (26 U.S.C. 6103);

and return information for unearned

income (i.e., interest and dividends)

from the Internal Revenue Service as

referenced at section 6103(l)(7)(B) (26

U.S.C. 6103). Also, the consent forms

may authorize the collection of other

information from applicants or

participants to determine eligibility or

level of benefits as provided in 24 CFR

813.109 and 24 CFR 913.109. The

consent form expires after a limited

amount of time.

* * * * *

8. Section 760.10 is amended by

revising paragraph (c), to read as

follows:

§ 760.10 Consent by applicants and

participants.

* * * * *

(c) Consent form requirements. The

consent form required by this subpart B

shall, at a minimum, contain the

following:

(1) A provision authorizing HUD and

HAs to obtain from SWICAs any

information or materials necessary to

complete or verify the application for

participation or to maintain continued

assistance under a program referred to

in § 760.3;

(2) A provision authorizing HUD,

HAs, or the owner responsible for

determining eligibility for or level of

assistance, to verify with previous or

current employers income information

pertinent to the applicant’s or

participant’s eligibility for or level of

assistance under a program referred to

in §§ 200.1203, 813.109 and 913.109 of

this title;

(3) A provision authorizing HUD to

request income return information from

the Internal Revenue Service and the

Social Security Administration for the

sole purpose of verifying income

information pertinent to the applicant’s

or participant’s eligibility or level of

benefits; and

(4) A statement that the authorization

to release the information requested by

the consent form expires 15 months

after the consent form was signed.

Dated: March 3, 1995.

Henry G. Cisneros,

Secretary.

[FR Doc. 95–6715 Filed 3–17–95; 8:45 am]

BILLING CODE 4210–32–P

24 CFR Part 3500

[Docket No. R–95–1538; FR–2942–C–07]

RIN 2502–AG27

Office of the Assistant Secretary for

Housing-Federal Housing

Commissioner; Real Estate Settlement

Procedures Act, Section 6 Transfer of

Servicing of Mortgage Loans

(Regulation X): Corrections

AGENCY: Office of the Assistant

Secretary for Housing-Federal Housing

Commissioner, HUD.

ACTION: Final rule.
14636 Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules and Regulations

SUMMARY: The final rule published on

December 19, 1994, is being further

amended to correct technical errors and

to conform the rule text and an

Appendix. Previously, on January 10,

1995, the Department published a

substitute page correcting Appendix

MS–1 to Part 3500 and correcting a

cross-reference. The corrections

published today are necessary to clarify

certain other provisions.

EFFECTIVE DATE: June 19, 1995. This is

the same effective date as applies to the

final rule and earlier corrections.

However, the Department continues to

encourage persons covered by the new

rule to implement all of its provision

earlier than the rule’s effective date.

FOR FURTHER INFORMATION CONTACT:

David R. Williamson, Director, RESPA

Enforcement, Room 5239, Department of

Housing and Urban Development, 451

7th Street, S.W., Washington, D.C.

20410, telephone (202) 708–4560. The

TDD number for hearing-impaired

persons is (202) 708–4594. (These are

not toll-free numbers.)

SUPPLEMENTARY INFORMATION: Under the

Real Estate Settlement Procedures Act of

1974 (12 U.S.C. 2601 et seq.) (RESPA),

the Secretary is to publish regulations

implementing the requirements in

Section 6 (12 U.S.C. 2605) concerning

the servicing of mortgage loans. On

December 19, 1994 (59 FR 65442), the

Department published a final rule

implementing Section 6 of RESPA. On

January 10, 1995 (60 FR 2642), the

Department published a substitute page

correcting Appendix MS–1 to Part 3500,

the Servicing Disclosure Statement, to

include the Acknowledgment of

Mortgage Loan Applicant that was

referenced in the rule text. In addition,

the January 10, 1995, publication

corrected a cross-reference in

§ 3500.21(e) of the rule.

Additional corrections are necessary:

(a) To clarify terminology relating to

the period of time applicable to certain

calculations;

(b) To clarify how long signed

acknowledgements must be retained;

(c) To clarify the contents of the

Notices of Transfer, including removing

one unnecessary requirement and

ensuring that borrowers are advised of

their rights in connection with

complaint resolution; and

(d) To clarify the protections

applicable to borrowers during a

transfer of loan servicing and to conform

the text of the rule with Appendix MS–

2, Notice of Assignment, Sale, or

Transfer of Servicing Rights.

In addition, the Department is

correcting a cross-reference in one of the

definitions applicable to part 3500.

Accordingly, 24 CFR 3500.2 is

amended and FR Doc. 94–30413, the

final rule on Real Estate Settlement

Procedures Act, Section 6 Transfer of

Servicing of Mortgage Loans (Regulation

X); and Real Estate Settlement

Procedures Act (Regulation X); Escrow

Accounting Procedures: Technical

Correction, published December 19,

1994 (59 FR 65442), is corrected, as

follows:

PART 3500—REAL ESTATE

SETTLEMENT PROCEDURES ACT

1. The authority citation for 24 CFR

part 3500 continues to read as follows:

Authority: 12 U.S.C. 2601 et seq.

2. In § 3500.2, the definition of

‘‘Lender’’ is amended by revising the

fourth sentence to read as follows:

§ 3500.2 Definitions.

* * * * *

Lender * * * See also § 3500.5(b)(7),

secondary market transactions.

* * * * *

§ 3500.21 [Corrected]

3. In the Federal Register of December

19, 1994, on page 65449, the second

sentence in § 3500.21(b)(3)(iii) is

amended at the first and fourth line of

the third column by substituting the

phrase ‘‘12-month period’’ for the

phrase ‘‘calendar year’’ in the two

places where it appears.

4. On page 65450, in the first column,

in § 3500.21, a new paragraph (c)(3) is

added, to read as follows:

§ 3500.21 Mortgage servicing transfers.

* * * * *

(c) * * *

(3) The signed Applicant

Acknowledgment(s) shall be retained for

a period of 5 years after the date of

settlement as part of the loan file for

every settled loan. There is no

requirement for retention of Applicant

Acknowledgment(s) if the loan is not

settled.

* * * * *

5. On page 65450, beginning in the

second column, in § 3500.21:

a. Paragraphs (d)(3) (ii) and (iii) are

revised;

b. The word ‘‘and’’ is removed

following the semicolon at the end of

paragraph (d)(3)(v) in the third column;

c. The period at the end of paragraph

(d)(3)(vi) in the third column is replaced

with the word ‘‘; and’’;

d. A new paragraph (d)(3)(vii) is

added; and

e. Paragraph (d)(5) is revised, to read

as follows:

* * * * *

(d) * * *

(3) * * *

(ii) The name, consumer inquiry

addresses (including, at the option of

the servicer, a separate address where

qualified written requests must be sent),

and a toll-free or collect-call telephone

number for an employee or department

of the transferee servicer;

(iii) A toll-free or collect-call

telephone number for an employee or

department of the transferor servicer

that can be contacted by the borrower

for answers to servicing transfer

inquiries;

* * * * *

(vii) A statement of the borrower’s

rights in connection with complaint

resolution, including the information set

forth in paragraph (e) of this section.

Appendix MS–2 of this part illustrates

a statement satisfactory to the Secretary.

* * * * *

(5) Consumer protection during

transfer of servicing. During the 60-day

period beginning on the effective date of

transfer of the servicing of any mortgage

servicing loan, if the transferor servicer

(rather than the transferee servicer that

should properly receive payment on the

loan) receives payment on or before the

applicable due date (including any grace

period allowed under the loan

documents), a late fee may not be

imposed on the borrower with respect to

that payment and the payment may not

be treated as late for any other purposes.

* * * * *

Dated: March 14, 1995.

Nicolas P. Retsinas,

Assistant Secretary for Housing-Federal

Housing Commissioner.

[FR Doc. 95–6794 Filed 3–17–95; 8:45 am]

BILLING CODE 4210–27–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8590]

RIN 1545–AR10

Dividends Received Deduction Holding

Period Reduced for Periods Where

Risk of Loss Diminished

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to the reduction in

the holding period of stock where a

taxpayer has diminished its risk of loss

by holding one or more other positions

with respect to substantially similar or