831 10-17-12

Paperwork Reduction Act Submission

Please read the instruction before completing this form. For additional forms or assistance in completing this forms, contact your agency’s Paperwork Reduction Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement, and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 Seventeenth St. NW, Washington, DC 20503.

1. Agency/Subagency Originating Request: U.S. Department of Housing and Urban Development Office of Native American Programs		2. OMB Control Number: a. 2577-0200	b. None      
3. Type of information collection: (check one) New Collection Revision of a currently approved collection Extension of a currently approved collection Reinstatement, without change, of previously approved collection for which approval has expired Reinstatement, with change, of previously approved collection for which approval has expired Existing collection in use without an OMB control number For b-f, note item A2 of Supporting Statement instructions.	4. Type of review requested: (check one) Regular Emergency - Approval requested by       Delegated 5. Small entities: Will this information collection have a significant economic impact on a substantial number of small entities? Yes No 6. Requested expiration date: a. Three years from approval date b. Other (specify)

7. Title:

Loan Guarantees for Indian Housing

8. Agency form number(s): (if applicable)

HUD-27011, HUD-92051, FNMA forms 1003, 1003A, 1004, 1004C, 1004D, 1004MC, 1005, 1006, IRS form 4506-T, Marshall & Swift form 1007, Freddie Mac form 465

9. Keywords:

Housing, Mortgages, Native American, Section 184, Office of Loan Guarantee

10. Abstract:

Information collected determines if the Department will guarantee loans and mortgage insurance made by private lenders to Native American borrowers on “Indian areas”.

11. Affected public: (mark primary with “P” and all others that apply with “X”) a.   Individuals or households e.   Farms b. P Business or other for-profit f.   Federal Government c.   Not-for-profit institutions g. X State, Local or Tribal Government		12. Obligation to respond: (mark primary with “P” and all others that apply with “X”) a.   Voluntary b. P Required to obtain or retain benefits c.   Mandatory
13. Annual reporting and recordkeeping hour burden: a. Number of respondents 3250 b. Total annual responses 61,810 Percentage of these responses collected electronically 10% c. Total annual hours requested 21,998 d. Current OMB inventory 500 e. Difference (+,-) +21,498 f. Explanation of difference: 1. Program change:       2. Adjustment: +21,498		14. Annual reporting and recordkeeping cost burden: (in thousands of dollars) Do not include costs based on the hours in item 13. a. Total annualized capital/startup costs       b. Total annual costs (O&M)       c. Total annualized cost requested       d. Current OMB inventory       e. Difference       f. Explanation of difference: 1. Program change:       2. Adjustment:      
15. Purpose of Information collection: (mark primary with “P” and all others that apply with “X”) a. X Application for benefits e. X Program planning or management b.   Program evaluation f.   Research c.   General purpose statistics g. P Regulatory or compliance d.   Audit		16. Frequency of recordkeeping or reporting: (check all that apply) a. Recordkeeping b. Third party disclosure c. Reporting: 1. On occasion 2. Weekly 3. Monthly 4. Quarterly 5. Semi-annually 6. Annually 7. Biannually 8. Other (describe)      
17. Statistical methods: Does this information collection employ statistical methods? Yes No	18. Agency contact: (person who can best answer questions regarding the content of this submission) Name: Thomas Wright Phone: (202) 708-0614 ext 4978

19. Certification for Paperwork Reduction Act Submissions

On behalf of the U.S. Department of Housing and Urban Development, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9.

Note: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320/8(b)(3). appear at the end of the instructions. The certification is to be made with reference to those regulatory provisions as set forth in the instructions.

The following is a summary of the topics, regarding the proposed collections of information that the certification covers:

1. It is necessary for the proper performance of agency functions;

2. It avoids unnecessary duplication;

3. It reduces burden on small entities;

4. It uses plain, coherent, and unambiguous terminology that is understandable to respondents;

5. Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

6. It indicates the retention periods for recordkeeping requirements;

7. It informs respondents of the information called for under 5 CFR 1320.8(b)(3):

1. Why the information is being collected;

2. Use of the information;

3. Burden estimate;

4. Nature of response (voluntary, required for a benefit, or mandatory);

5. Nature and extent of confidentiality; and

6. Need to display currently valid OMB control number;

8. It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to collected (see note in item 19 of the instructions);

1. It uses effective and efficient statistical survey methodology; and

2. It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item below and explain the reason in item 18 of the Supporting Statement.

     

Signature of Program Official: X Rodger Boyd, Deputy Assistant Secretary

Date:

Supporting Statement for Paperwork Reduction Act Submissions

2577-0200

Loan Guarantees for Indian Housing and Native Hawaiian Housing

1. Justification.

1. This information is required by Sections 184 and 184A of the Housing and Community Development Act of 1992 as amended by Sections 701of the Native American Housing Assistance and Self-Determination Act of 1996 and implementing regulations at 24 CFR Section 1005 and 24 CFR 1007. These regulations authorize the Department of Housing and Urban Development to run loan guarantee programs to facilitate lending for Indian Housing and for housing for Native Hawaiians.

Under the Section 184 Program , the Department will guarantee loans made by private lenders to Native American borrowers, Tribally Designated Housing Entities (THDEs), and Tribes that construct, acquire, or rehabilitate 1-4-family homes. These homes must be located on trust land or land located in an Indian or Alaska Native area.

Under the Section 184A program, the Department will guarantee loans made by private lenders made to Native Hawaiian borrowers, the Department of Hawaiian Home Lands, the Office of Hawaiian Affairs and non-profit organizations that construct, acquire or rehabilitate 1-4 family homes. These homes must be located on Hawaiian Home lands.

2. The information collected from lenders is used to determine the borrower’s credit worthiness and ensure that the lenders comply with program requirements. Mortgage lenders provide the information contained in “case number request form”, the “net tangible benefit form”, and the four “mortgage credit analysis worksheets” ensure eligibility of the program and process the loan. Information required is needed to complete mortgage calculations, settlement requirements and general lender and mortgage information. The information is required to obtain a benefit.

To determine whether a particular borrower is eligible for a Section 184 loan guarantee or a Section 184A loan guarantee, the lender must analyze the borrower’s ability to repay the mortgage debt. Upon approval a guarantee fee of 1% of the loan amount must be submitted to HUD prior to endorsement of a Section 184 loan. The fee may be financed into the mortgage amount.

The information provided by mortgagees is based on information collected during the standard process of initiating a mortgage, as standard business practice. That information is gathered on IRS form 4506-T; NPMA-33; Freddie Mac form 465; FNMA forms 1003, 1003A, 1004, 1004C, 1004D, 1004MC, 1005, 1006, 3200 and 3012; Department of Hawaiian Home Lands (DHHL) Certification of Eligibility, Consent to Mortgage, Lease and 184A Guarantee Rider to Lease; Truth in Lending Statement; Good Faith Estimate; HUD-1 Settlement Statement; Marshall and Swift 1007; HUD-27011, HUD 92900A; and HUD-92051.

The information collected on these forms is used to ensure that the lenders have followed program requirements and that the Department is legally protected against fraud, waste, and abuse.

For the Section 184 program, that information is gathered on Section 184Case Number Request Form; Section 184 Net Tangible Benefit Form; Section 184 Mortgage Credit Analysis Worksheet-Acquisition or Construction; Section 184Mortgage Credit Analysis Worksheet-No Cash Out Refinance; Section 184 Mortgage Credit Analysis Worksheet-Cash Out Refinance; Section 184 Mortgage Credit Analysis Worksheet-Single Close Maximum Worksheet; Section 184 Construction Loan Agreement; Section 184 Delegated Underwriting Authority; Section 184 Mortgagee’s Assurance of Completion; Section 184 HUD Statutory Worksheet; Sample Model Lease; Sample Model Tribal Lending Code; Addendum to the Uniform Residential Loan Application; Warranty of Completion of Construction; Single Close Acknowledgement; Section 184 Homebuyer Notice; Rider for Section 184-Individual Allotted; Rider for Section 184-Fee Simple; Rider for Section 184-Construction; Rider for Section 184-Non Borrower Pledge of Interest; Land Status Jurisdiction Form; Lender Submission Contact Sheet; Claim Payment Submission Form; Post Endorsement Checklist; Section 184 Underwriting Checklist for Individuals-Purchase; Section 184 Underwriting Checklist for Streamline Refinance; Section 184 Underwriting Checklist for Cash Out or No Cash Out Refinance Checklist; Section 184 Case Binder Order Checklist.

For the Section 184A program, that information is collected on the Section 184A Request for Case Number Assignment; Rider for Section 184A Mortgage; HUD-54111; Request for Insurance Endorsement; Section 184A Net Tangible Benefit Form; Section 184A Mortgage Credit Analysis Worksheet-Acquisition or Construction; Section 184A Mortgage Credit Analysis Worksheet-No Cash Out Refinance; Section 184A Mortgage Credit Analysis Worksheet-Cash Out Refinance; Section 184A Non Credit Qualifying Streamline Refinance worksheets; Section 184A Recommended Underwriting Submission Checklist for Streamline Refinances; Section 184A Recommended Underwriting Submission Checklist for Cash out or No Cash Out Refinances; Section 184A DHHL Institutional Loan; HUD processing Firm Commitment Submission Checklist.

3. This information collection has not been adapted to an electronic process due the relatively low volume of transactions and the requirement for signatures. The Department has a draft electronic signature policy in review.

4. The Department is not collecting this information through any other information collection mechanism.

5. The information requested was designed to minimize the burden for both large and small organizations, as well as for the Federal Government, by requesting a minimal amount of information.

6. Legislation requires the lender to submit application for the loan to the Secretary for underwriting and compliance. The Department would be in violation of the law if less frequent collection were made.

7. This information collection does not have any special circumstances that require submission of the information inconsistently with current OMB procedures.

8. This information collection was announced in the Federal Register, Volume 77; Page 21793; on April 11, 2012. To date, the Department has received no public comments on the proposed information collection.

9. No payments or gifts to respondents are provided.

10. The privacy of the respondents and the associated information collected will be protected to the extent permitted by law.

11. No sensitive questions of the nature described are involved.

12. Estimated burden:

Information	Title	no. of respondents	Frequency of response	hrs. per response	total annual hours	Hrly Cost	Total Costs
FNMA 10031	Universal Residential Loan Application	3,250	1	.75	2438	$18	$43,875
FNMA 1003A	Statement of Assets and Liabilities	3,250	1	.25	813	$18	$14,625
FNMA 1004	Universal Residential Appraisal Report	2,750	1	1.5	4125	$25	$103,125
FNMA 1004C	Manufactured Home Appraisal Report	550	1	1.5	825	$25	$20,625
FNMA 1004D	Appraisal Update and/or Completion Report	550	1	.25	138	$25	$3,438
FNMA 1004MC	Addendum to the Appraisal Report	550	1	.25	138	$25	$3,438
FNMA 1005	Verification of Employment	3,250	1	.15	488	$18	$8,775
FNMA 1006	Verification of Deposit	3,250	1	.15	488	$18	$8,775
HUD-27011	Single-Family Application for Insurance	550	1	1.0	550	$18	$9,900
IRS 4506-T	Request for Transcript of Tax Return	3,250	1	.15	488	$18	$8,775
NPMA-33	Wood Destroying Insect Inspection Report	3,250	1	.15	488	$18	$8,775
Freddie-465	Individual Condominium Appraisal Report	150	1	1.50	225	$18	$4,050
M&S-1007	Square Foot Appraisal Form	3,250	1	.25	813	$25	$20,313
HUD-92051	Compliance Inspection Report	200	1	.25	50	$25	$1,250
	Section 184 Case Number Request Form	3,000	1	.15	450	$18	$8,100
	Section 184 Net Tangible Benefit Form	3,000	1	.15	450	$25	$11,250
	Section 184 Mortgage Credit Analysis Worksheet-Acquisition	1200	1	.50	600	$25	$15,000
	Section 184 Mortgage Credit Analysis Worksheet-No Cash Out Refinance	200	1	.50	100	$25	$2,500
	Section 184 Mortgage Credit Analysis Worksheet- Cash Out Refinance	600	1	.50	300	$25	$7,500
	Section 184 Mortgage Credit Analysis Worksheet- Streamline with No Appraisal Refinance	600	1	.50	300	$25	$7,500
	Section 184 Mortgage Credit Analysis Worksheet- Single Close Maximum Worksheet	200	1	.50	100	$25	$2,500
	Construction loan Agreement	200	1	.15	30	$25	$750
	Section 184 Delegated Underwriting Authority	1500	1	.50	750	$25	$18,750
	Mortgagee’s Assurance of Completion	200	1	.15	30	$18	$540
	HUD Statutory Worksheet	200	1	.50	100	$25	$2500
	Sample Model Lease	500	1	1.50	750	$25	$18,750
	Sample Model Tribal Lending Code	500	1	1.50	750	$25	$18,750
	Addendum to the Uniform Residential Loan Application	3000	1	.75	2250	$25	$56,250
	Warranty of Completion of Construction	200	1	.25	50	$25	$1,250
	Single Close Applicant Acknowledgement	200	1	.15	30	$25	$750
	Section 184 Homebuyer Notice	3000	1	.10	300	$25	$7500
	Rider for Section 184-Individual Allotted	500	1	.10	50	$18	$900
	Rider for Section 184-Fee Simple	2300	1	.10	230	$18	$4,140
	Rider for Section 184-Construction	200	1	.10	20	$18	$360
	Rider for Section 184-Non borrower pledge of Interest	50	1	.10	5	$18	$90
	Land Status Jurisdiction Form	500	1	.25	125	$18	$2250
	Lender Submission Contact Sheet	3000	1	.15	450	$18	$8100
	Claim Payment Submission Form	400	1	.15	60	$18	$1080
	Post Endorsement Checklist	3000	1	.15	450	$18	$8100
	Underwriting Checklist for Individuals-Purchase	1000	1	.15	150	$18	$2700
	Underwriting Checklist for Streamline Refinance	1000	1	.25	250	$18	$4500
	Underwriting Checklist for Cash out or No Cash Out Refinance Checklist	500	1	.25	125	$18	$2250
	Case Binder File Order Checklist	1500	1	.25	375	$18	$6750
	Section 184A Case Number Request Form	250	1	.15	38	$18	$675
	Section 184A Net Tangible Benefit Form	250	1	.15	38	$25	$938
	Section 184A Mortgage Credit Analysis Worksheet-Acquisition or Construction	200	1	.50	100	$25	$2500
	Section 184A Mortgage Credit Analysis Worksheet-No Cash Out Refinance	10	1	.50	5	$25	$125
	Section 184A Mortgage Credit Analysis Worksheet- Cash Out Refinance	10	1	.50	5	$25	$125
	Section 184A Mortgage Credit Analysis Worksheet- Streamline with No Appraisal Refinance	10	1	.50	5	$25	$125
	Section 184A Mortgage Credit Analysis Worksheet- Single Close Maximum Worksheet	10	1	.50	5	$25	$125
	Rider for Section 184A Mortgage	250	1	.10	25	$18	$450
	HUD-5411- Request for Insurance Endorsement;	250	1	.15	38	$18	$675
	Section 184A Recommended Underwriting Submission Checklist for Streamline Refinances;	250	1	.15	38	$18	$675
	Section 184A Recommended Underwriting Submission Checklist for Cash Out or No Cash Out Refinances;	10	1	.50	5	$25	$125
	Section 184A DHHL Institutional Loan –HUD processing Firm Commitment Submission Checklist.	10	1	.50	5	$25	$125
Total		61,810			21998		$487,760

13. There are no additional costs to respondents.

14. There are no additional costs to the Federal Government.

15. This request is a reinstatement, with change, of a previously approved collection for which approval has expired. The increase in the number of responses as well as the increase in burden hours is due to increasing loan volumes and overall growth of the Section 184 program and the inclusion of the Section 184A mortgage program in this collection. The number of Section 184 and Section 184A loans has increased every year, some years quite dramatically. In order to reflect this fact the number of projected respondents has been raised to 61,810 respondents per year. Additionally, the annual hours requested has been increased to 21998 hours. There is an option for an electronic version of this form now available. This form has reduced the math errors and carries some of the data to multiple locations in the form.

16. The collection of information will not be published.

17. OMB approval number appears on the forms; the expiration date will be updated once OMB approval is received.

18. There are no exceptions to the certification statement identified in item 19 of the OMB 83-i.

B. Collections of Information Employing Statistical Methods

This information collection does not employ statistical methods.

1Fannie Mae forms have no burden on applicants.

OMB 83-I 10/95