2502-0016-supporting Statement A

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 to replace the Development Application Processing (DAP) system with a modernized and simplified solution to improve the application review process are underway.  The initial prototype for handling the tracking pipeline data and reporting for Multifamily (MFH) and Healthcare (OHP) needs to be developed using the most feasible, flexible, and scalable technologies to build an interactive and intuitive online solution.  The new system, to be called Application Underwriting Support System (AUSS) will generate staff-generated review documents, pre-populated standardized documents and offers communication capability between HUD staff reviews and Lender coordination. It will also interface with the integrated Real Estate Management System (iREMS), a lender portal, and document management system for an enterprise solution that will streamline FHA’s business processes.  Strategic planning, technologies evaluation, risk assessment, and security consideration are agilely reviewed at each life cycle stage to ensure realignment opportunities captured and implemented in timely manner.

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. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• requiring respondents to report information to the agency more than quarterly;

Not Applicable

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

Not Applicable

• requiring respondents to submit more than an original and two copies of any document;

Not Applicable

• requiring respondents to retain records other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

Not Applicable

• in connection with a statistical survey, that is not designed to produce valid and reliable results than can be generalized to the universe of study;

Not Applicable

• requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

• Not Applicable

that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

Not Applicable

• requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

• Not Applicable

There are no special circumstances that require the collection of information to be inconsistent with the guidelines in 24CFR 200.95 and 200.96.

8. In accordance with 5CFR 1320.8(d), this information collection soliciting public comments was announced in the Federal Register on September 16, 2016, Volume 81, No. 180, Pages 63784. No Comments 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 Response	Reponses Per Annum	Burden Hour Per Response	Annual Burden Hours	Hourly Cost Per Response	Total Annual Cost
HUD-92023	1,472	1	1,472	1	1,472	$20.00	$29,440.00
Totals			1,472		1,472		$29,440.00

13. There are no additional costs to respondents.

14. Annual Cost to the Federal Government:

Information Collection	Number of Respondents	Frequency of Response	Total Annual Responses	Burden Hours per Response	Annual Burden Hours	Hourly Cost	Total Annual Cost
HUD-92023	1,472	1	1,472	1	1,472	$35.38	$52,079.36
Totals	1,472		1,472				$52,079.36

Estimated hourly cost is based on the Federal annual salary of a GS 13, step 1 of $73,846

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