Supporting Statement A 2

SUPPORTING STATEMENT FOR

FINAL ENDORSEMENT OF CREDIT INSTRUMENT

FORM HUD-92023

Justification

1. Section 207 of the National Housing Act (Public Law 479; 48 Stat. 1426; 12 U.S.C. 1701 et. seq.), authorizes the Secretary of the Department of Housing and Urban Development to insure mortgages on multifamily housing. The term “first mortgage” means such classes of first liens as are commonly given to secure advances (including but not being limited to advances during construction) on, or the unpaid purchase price of, real estate under the laws of the State in which the real estate is located, together with the credit instrument or instruments, if any. The credit instrument is secured by, and may be in the form of trust mortgages or mortgage indentures or deeds of trust securing notes, bonds, or other instruments.

2. Copies of outstanding regulations are attached for 24 CFR 200.100. The credit instrument shall be initially and finally endorsed simultaneously for insurance pursuant to a firm commitment to insure upon completion. Where the advances of construction funds are to be insured pursuant to a firm commitment of insured advances, initial endorsement of the credit instrument shall occur before disbursement of any mortgage proceeds. After all advances of mortgage proceed, terms, and conditions of the commitment are met to the satisfaction of the Department, HUD will again endorse the credit instrument. Further, the mortgagor must certify at final endorsement for mortgage insurance that the property covered by the mortgage is free and clear of all liens other than such mortgage, and that there will be no other outstanding unpaid obligations contracted in connection with the mortgage transaction, the purchase of the mortgaged property, or the construction of the project, except such obligations as may be approved by the Commissioner as to term, form, and amount.

3. Reengineering efforts are being made to replace the DAP system, which would improve the functionality and replacement of technology, and the online implementation of automated underwriting processing from the beginning to end of completion, including the e-signature.  The target date of 9/30/2013 was given for implementation.  The information was based on the 2009 FHA Multifamily IT Strategy Plan, modernization of IT.  This information was submitted to Congress.  Procurements are involved so the projected date is 9/2013 for implementation assuming all goes well with procurements.”

4. There is no duplication of this form.

5. The collection of information does not involve small businesses or other small entities.

6. If the collection of information were not conducted HUD would be unable to assure that approved funds were disbursed as authorized.

7. This collection of information is unique and assures at final endorsement that the property will be free and clear for the purpose of mortgage insurance.

8. Information collected is conducted in a manner consistent with the guidelines of 5 CFR 1320.8(d). The Notice announcing this collection of information appeared in the Federal Register on April 11, 2013, Vol 78, No. 70 pages 21617. No comments were received.

9. There will be no payments or gifts given to respondents.

9. No assurance of confidentiality, statute, regulation or agency policy is provided.

9. There are no questions of a sensitive nature.

9. Annual Burden Estimate:

Information Collection	Number of Respondents	Frequency of Responses	Total Annual Responses	Burden Hour Per Response	Total Annual Burden Hours	Hourly Cost	Total Annual Cost
HUD-92023	5126	1	5126	1	5126	$20.00	$102,520
Totals	5126		5126		5126		$102,520

13. There are no additional costs to respondents.

14. Annual Cost to the Federal Government:

Information Collection	Number of Respondents	Hours per Response	Total Annual Hours	Hourly Cost	Annual Cost
HUD-92023	5126	1	5126	$43.00	$220,418
Totals	5126		5126		$220,418

Estimated hourly cost is based on the Federal annual salary of a GS 13, step 1 for reviewing the information.

15. This is a revision without change of a currently approved collection. The number of respondents was increased based on the Department’s endorsement data for a three-year period. The population naturally increased due to issues in the private market.

16. The collection of information is not scheduled for publication.

17. The OMB expiration data will be displayed on the appropriate forms.

18. There are no exceptions to the “Certification Statement”.

B. Collections of Information Employing Statistical Methods.

There will be no statistical methods used in this collection of information.

OMB 83-I 10/95