81 FR 31163 - Single Family Housing Guaranteed Loan Program
DEPARTMENT OF AGRICULTURE
Rural Housing Service Federal Register Volume 81, Issue 96 (May 18, 2016)
Rural Housing Service
Federal Register Volume 81, Issue 96 (May 18, 2016)
| Page Range | 31163-31165 | |
| FR Document | 2016-11608 |
[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)] [Rules and Regulations] [Pages 31163-31165] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-11608] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Rules and Regulations [[Page 31163]] DEPARTMENT OF AGRICULTURE Rural Housing Service 7 CFR Part 3555 RIN 0575-AD04 Single Family Housing Guaranteed Loan Program AGENCY: Rural Housing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Rural Housing Service (RHS or Agency) is amending the current regulation for the Single Family Housing Guaranteed Loan Program (SFHGLP) on the subject of liquidation value appraisals. In order to reduce overall processing time, reduce cost, and expedite claim submission, lenders will order the liquidation value appraisal used to estimate a loss claim against the SFHGLP instead of the Agency. Currently, if a Real Estate Owned (REO) property remains unsold by the lender at the end of the permissible marketing period, the Agency orders a liquidation value appraisal and applies an acquisition and management resale factor to estimate holding and disposition cost. This amendment requires the servicing lender to order the liquidation value appraisal. The costs associated with obtaining the liquidation value appraisal can then be included in the liquidation costs paid under the guarantee. DATES: Effective Date: June 17, 2016. FOR FURTHER INFORMATION CONTACT: Lilian Lipton, Finance and Loan Analyst, Single Family Housing Guaranteed Loan Division, STOP 0784, Room 2250, USDA Rural Development, South Agriculture Building, 1400 Independence Avenue SW., Washington, DC 20250-0784, telephone: (202) 260-8012, email is lilian.lipton@wdc.usda.gov. SUPPLEMENTARY INFORMATION: RHS amends the current regulation for the Single Family Housing Guaranteed Loan Program (SFHGLP) on the subject of liquidation value appraisals. In order to reduce overall processing time, reduce cost, and expedite claim submission, lenders will order the liquidation value appraisal used to estimate a loss claim against the SFHGLP instead of the Agency. Specifically, RHS amends 7 CFR 3555.306(f)(3), 3555.352(e), 3555.353(b)(1), and 3555.354(b)(1)(i) and (ii) and (b)(2). Executive Order 12866, Classification This rule has been determined to be non-significant and, therefore was not reviewed by the Office of Management and Budget (OMB) under Executive Order 12866. Executive Order 12988, Civil Justice Reform This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Except where specified, all State and local laws and regulations that are in direct conflict with this rule will be preempted. Federal funds carry Federal requirements. No person is required to apply for funding under SFHGLP, but if they do apply and are selected for funding, they must comply with the requirements applicable to the Federal program funds. This final rule is not retroactive. It will not affect agreements entered into prior to the effective date of the rule. Before any judicial action may be brought regarding the provisions of this rule, the administrative appeal provisions of 7 CFR part 11 must be exhausted. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for Federal agencies to assess the effect of their regulatory actions on State, local, and tribal governments and the private sector. Under section 202 of the UMRA, the Agency generally must prepare a written statement, including a cost- benefit analysis, for proposed and final rules with ``Federal mandates'' that may result in expenditures to State, local, or tribal governments, in the aggregate, or to the private sector, of $100 million, or more, in any one year. When such a statement is needed for a rule, section 205 of the UMRA generally requires the Agency to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, most cost-effective, or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates (under the regulatory provisions of Title II of the UMRA) for State, local, and tribal governments or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of the UMRA. Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1940, subpart G, ``Environmental Program.'' It is the determination of the Agency that this action does not constitute a major Federal action significantly affecting the quality of the human environment, and, in accordance with the National Environmental Policy Act of 1969, Public Law 91-190, neither an Environmental Assessment nor an Environmental Impact Statement is required. Executive Order 13132, Federalism The policies contained in this rule do not have any substantial direct effect on States, on the relationship between the national government and States, or on the distribution of power and responsibilities among the various levels of government. Nor does this rule impose substantial direct compliance costs on State and local governments. Therefore, consultation with the States is not required. Regulatory Flexibility Act In compliance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) the undersigned has determined and certified by signature of this document that this rule change will not have a significant impact on a substantial number of small entities. This rule does not impose any significant new requirements on Agency applicants and borrowers, and the regulatory changes affect only Agency determination of program benefits for guarantees of loans made to individuals. Executive Order 13175, Consultation and Coordination With Indian Tribal Governments Executive Order 13175 imposes requirements on RHS in the development of regulatory policies that have Tribal implications or preempt [[Page 31164]] tribal laws. RHS has determined that the rule does not have a substantial direct effect on one or more Indian Tribe(s) or on either the relationship or the distribution of powers and responsibilities between the Federal Government and Indian Tribes. Thus, this final rule is not subject to the requirements of Executive Order 13175. If a Tribe determines that this rule has implications of which RHS is not aware and would like to engage with RHS on this rule, please contact USDA Rural Development's Native American Coordinator at (720) 544-2911 or AIAN@wdc.usda.gov. Executive Order 12372, Intergovernmental Consultation These loans are subject to the provisions of Executive Order 12372, which require intergovernmental consultation with State and local officials. RHS conducts intergovernmental consultations for each SFHGLP in accordance with 2 CFR part 415, subpart C. Programs Affected The program affected by this regulation is listed in the Catalog of Federal Domestic Assistance under Number 10.410, Very Low to Moderate Income Housing Loans (Section 502 Rural Housing Loans). Paperwork Reduction Act The information collection and record keeping requirements contained in this regulation have been approved by OMB in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). The assigned OMB control number is 0570-0179. E-Government Act Compliance The Agency is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. Non-Discrimination Policy The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form (PDF), found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632- 9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue SW., Washington, DC 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov. Individuals who are deaf, hard of hearing or have speech disabilities and you wish to file either an EEO or program complaint please contact USDA through the Federal Relay Service at (800) 877-8339 or (800) 845-6136 (in Spanish). Persons with disabilities, who wish to file a program complaint, please see information above on how to contact us by mail directly or by email. If you require alternative means of communication for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). I. Background Information On October 6, 2015, RHS published a proposed rule with request for comments for the Single Family Housing Guaranteed Loan Program (SFHGLP) (80 FR 60298-60300). Rural Development received comments from one respondent. The comments are addressed below. II. Discussion of the Comments Received Comment: The respondent strongly supported the Agency's proposal and requested clarification: (1) If mortgagees will be required to order a liquidation value appraisal when a sale date for a possessed home has been scheduled, but the sale date falls outside the permissible marketing period; (2) if mortgagees should order a liquidation value appraisal for the property when a contract for a sale falls through after the permissible marketing period has expired; and (3) if mortgagees will be held liable for not having ordered a liquidation value appraisal in the event a home sale is scheduled to be finalized on a date that is near the end of the permissible marketing period and the sale falls through. RHS response: Technical details of lenders responsibilities while servicing non-performing loans are explained in the Agency's 3555 Handbook, therefore there will be no changes made in this provision. List of Subjects in 7 CFR Part 3555 Home improvement, Loan programs--housing and community development, Mortgage insurance, Mortgages, Rural areas. Therefore, chapter XXXV, title 7 of the Code of Federal Regulations is amended as follows: PART 3555--GUARANTEED RURAL HOUSING PROGRAM 0 1. The authority citation for part 3555 continues to read as follows: Authority: 5 U.S.C. 301; 42 U.S.C. 1471 et seq. Subpart G--Servicing Non-Performing Loans 0 2. Section 3555.306 is amended by revising paragraph (f)(3) to read as follows: Sec. 3555.306 Liquidation. * * * * * (f) * * * (3) The lender must notify the Agency when the property has not been sold within 30 days of the expiration of the permissible marketing period. If the REO remains unsold at the end of the permissible marketing period, the lender will order a liquidation value appraisal and the Agency will apply an acquisition and management resale factor to estimate holding and disposition cost. Interest expenses accrued beyond 90 days of the foreclosure sale date or expiration of any redemption period, whichever is later, will be the responsibility of the lender and not covered by the guarantee. * * * * * Subpart H--Collecting on the Guarantee 0 3. Section 3555.352 is amended by revising paragraph (e) to read as follows: Sec. 3555.352 Loss covered by the guarantee. * * * * * (e) Liquidation costs. Reasonable and customary liquidation costs, such as attorney fees, liquidation value appraisals, and foreclosure costs. Annual fees advanced by the lender to the Agency are ineligible for reimbursement when calculating the loss payment, as otherwise provided by the Agency. [[Page 31165]] 0 4. Section 3555.353 is amended by revising paragraph (b)(1) to read as follows: Sec. 3555.353 Net recovery value. * * * * * (b) * * * (1) The value of the property as determined by a liquidation value appraisal. The value should be determined as if the property would be sold without the market exposure it would ordinarily receive in a normal transaction, or within 90 days, minus; * * * * * 0 5. Section 3555.354 is amended by revising paragraphs (b)(1) and (2) to read as follows: Sec. 3555.354 Loss claim procedures. * * * * * (b) * * * (1) The lender must submit a loss claim request that includes a completed liquidation value appraisal within 30 calendar days of the period ending: (i) Nine (9) months after either foreclosure or the end of any applicable redemption period, whichever is later, if the property remains unsold and is not located on American Indian restricted land; or (ii) Twelve (12) months after either foreclosure or the end of any applicable redemption period, whichever is later, if the property remains unsold and is located on American Indian restricted land. Late claims made beyond this period of time, or submitted with a liquidation value appraisal not completed within the timeframes described in paragraphs (b)(1)(i) and (ii) of this section, may be rejected. (2) The lender must submit a loss claim that includes the completed liquidation value appraisal within 30 calendar days of receiving the appraisal. Late claims made beyond this period of time, or submitted with a liquidation value appraisal not completed within the timeframes described in paragraphs (b)(1)(i) and (ii) of this section, may be rejected. * * * * * Dated: March 26, 2016. Tony Hernandez, Administrator, Rural Housing Service. [FR Doc. 2016-11608 Filed 5-17-16; 8:45 am] BILLING CODE 3410-XV-P
![Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Rules and Regulations 31165
■ 4. Section 3555.353 is amended by DEPARTMENT OF THE TREASURY Background
revising paragraph (b)(1) to read as Section 402(a) provides generally that
follows: Internal Revenue Service
any amount distributed from a trust
§ 3555.353 Net recovery value.
described in section 401(a) that is
26 CFR Part 1
exempt from tax under section 501(a) is
* * * * * taxable to the distributee under section
(b) * * * [TD 9769] 72 in the taxable year of the distributee
(1) The value of the property as in which distributed. Under section
determined by a liquidation value RIN 1545–BK08 403(b)(1), any amount distributed from
appraisal. The value should be a section 403(b) plan is also taxable to
Removal of Allocation Rule for the distributee under section 72.
determined as if the property would be Disbursements From Designated Roth If a participant’s account balance in a
sold without the market exposure it Accounts to Multiple Destinations plan qualified under section 401(a) or in
would ordinarily receive in a normal a section 403(b) plan includes both
transaction, or within 90 days, minus; AGENCY: Internal Revenue Service (IRS),
after-tax and pretax amounts, then,
* * * * * Treasury.
under section 72(e)(8), each distribution
ACTION: Final regulations. (other than a distribution that is paid as
■ 5. Section 3555.354 is amended by
revising paragraphs (b)(1) and (2) to read part of an annuity) from the plan will
SUMMARY: This document contains final include a pro rata share of both after-tax
as follows: regulations eliminating the requirement and pretax amounts. (Under section
that each disbursement from a 72(d), a different allocation method
§ 3555.354 Loss claim procedures.
designated Roth account that is directly applies to annuity distributions.)
* * * * * rolled over to an eligible retirement plan Section 402(c) prescribes rules for
(b) * * * be treated as a separate distribution amounts that are rolled over from
from any amount paid directly to the qualified trusts to eligible retirement
(1) The lender must submit a loss
employee and therefore separately plans, including individual retirement
claim request that includes a completed
subject to the rule in section 72(e)(2) of accounts or annuities (‘‘IRAs’’). Subject
liquidation value appraisal within 30 the Internal Revenue Code (the Code)
calendar days of the period ending: to certain exceptions, section 402(c)(1)
allocating pretax and after-tax amounts provides that if any portion of an
(i) Nine (9) months after either to each distribution. As a result of this eligible rollover distribution paid to an
foreclosure or the end of any applicable change, if disbursements are made from employee from a qualified trust is
redemption period, whichever is later, if a taxpayer’s designated Roth account to transferred to an eligible retirement
the property remains unsold and is not the taxpayer and also to the taxpayer’s plan, the portion of the distribution so
located on American Indian restricted Roth IRA or designated Roth account in transferred is not includible in gross
land; or a direct rollover, then pretax amounts income in the taxable year in which
(ii) Twelve (12) months after either will be allocated first to the direct paid.
rollover, rather than being allocated pro Under section 402(c)(2), the
foreclosure or the end of any applicable
rata to each destination. Also, a taxpayer maximum portion of an eligible rollover
redemption period, whichever is later, if
will be able to direct the allocation of distribution that may be rolled over in
the property remains unsold and is pretax and after-tax amounts that are
located on American Indian restricted a transfer to which section 402(c)(1)
included in disbursements from a applies generally cannot exceed the
land. Late claims made beyond this designated Roth account that are
period of time, or submitted with a portion of the distribution that is
directly rolled over to multiple otherwise includible in gross income.
liquidation value appraisal not destinations, applying the same
completed within the timeframes However, under section 402(c)(2)(A)
allocation rules to distributions from and (B), the general rule does not apply
described in paragraphs (b)(1)(i) and (ii) designated Roth accounts that apply to to such a distribution to the extent that
of this section, may be rejected. distributions from other types of such portion is transferred in a direct
(2) The lender must submit a loss accounts. These regulations affect trustee-to-trustee transfer to a qualified
claim that includes the completed participants in, beneficiaries of, trust or to an annuity contract described
liquidation value appraisal within 30 employers maintaining, and in section 403(b) and such trust or
calendar days of receiving the appraisal. administrators of designated Roth contract provides for separate
Late claims made beyond this period of accounts under tax-favored retirement accounting for amounts so transferred
time, or submitted with a liquidation plans. (and earnings thereon), including
value appraisal not completed within DATES: Effective Date: These regulations separately accounting for the portion of
the timeframes described in paragraphs are effective on May 18, 2016. such distribution which is includible in
(b)(1)(i) and (ii) of this section, may be Applicability Date: These regulations gross income and the portion of such
rejected. generally apply to distributions on or distribution which is not so includible,
after January 1, 2016 (or an earlier date or such portion is transferred to an IRA.
* * * * *
chosen by the taxpayer that is on or after In addition, section 402(c)(2) provides
Dated: March 26, 2016. September 18, 2014). For more that, in the case of a transfer described
Tony Hernandez, information see the ‘‘Effective/ in subparagraph (A) or (B), the amount
sradovich on DSK3TPTVN1PROD with RULES
Administrator, Rural Housing Service. Applicability Dates’’ section of this transferred shall be treated as consisting
[FR Doc. 2016–11608 Filed 5–17–16; 8:45 am] preamble. first of the portion of such distribution
that is includible in gross income
BILLING CODE 3410–XV–P FOR FURTHER INFORMATION CONTACT: (determined without regard to section
Michael Brewer at (202) 317–6700 (not 402(c)(1)).
a toll-free number). Under section 402A, an applicable
SUPPLEMENTARY INFORMATION: retirement plan may include a
VerDate Sep<11>2014 16:46 May 17, 2016 Jkt 238001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\18MYR1.SGM 18MYR1](https://thefederalregister.org/doc/81_FR_31259/page/3.svg)
Document Created: 2016-05-18 00:05:49
Document Modified: 2016-05-18 00:05:49
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Contact | Lilian Lipton, Finance and Loan Analyst, Single Family Housing Guaranteed Loan Division, STOP 0784, Room 2250, USDA Rural Development, South Agriculture Building, 1400 Independence Avenue SW., Washington, DC 20250-0784, telephone: (202) 260-8012, email is [email protected] | |
| FR Citation | 81 FR 31163 | |
| RIN Number | 0575-AD04 | |
| CFR Associated | Home Improvement; Loan Programs-Housing and Community Development; Mortgage Insurance; Mortgages and Rural Areas |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR