Department of Veterans Affairs.
This document eliminates redundant and obsolete provisions in the Department of Veterans Affairs (VA) loan guaranty regulations. The provisions being removed are no longer necessary because the phase-in of VA's new loan administration rules is complete.
Effective Date: June 15, 2010.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Katherine Faliski, Assistant Director for Loan Processing and Valuation (262), Veterans Benefits Administration, Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, telephone (202) 461-9527. (This is not a toll-free telephone number.)End Further Info End Preamble Start Supplemental Information
On February 18, 2005 (70 FR 8472), VA proposed to amend its loan guaranty regulations to implement new program requirements for the mortgage servicing industry. The notice of proposed rulemaking was followed by publication of a supplemental notice regarding the computer system for the new requirements (71 FR 68498, Nov. 27, 2006) and a second supplemental notice regarding VA's proposal for phasing-in the requirements (72 FR 30505, June 1, 2007). The second supplemental notice stated: “When all industry segments have been brought on-line, VA will remove current §§ 36.4300 through 36.4393, and redesignate the new 4800 series to replace current §§ 36.4300 through 36.4393. At that time, all program participants would be subject to the new rules.”
On February 1, 2008 (73 FR 6294), VA published a final rule amending 38 CFR part 36 to implement the new program requirements. VA temporarily designated then-existing provisions found at 38 CFR 36.4300 through 36.4393 (the “36.4300 series”) as a new subpart B and established a new subpart F to include new §§ 36.4800 through 36.4893 (the “36.4800 series”). The 36.4800 series replicated most aspects of the VA Loan Guaranty Program set forth in the 36.4300 series, but also included changes related to the servicing and liquidating of guaranteed housing loans in default, and the submission of guaranty claims by loan holders.
VA implemented the phase-in of the subpart F provisions over a period of 11 months and completed the process during the 2nd quarter of FY 2009, following which the 36.4300 series became redundant and obsolete. Rather than eliminating subpart B altogether, however, we are redesignating the 36.4800 series to replace the 36.4300 series in its entirety. This action is necessary because most program participants are accustomed to referring to the 36.4300 series for regulations pertaining to the VA Loan Guaranty Program.
Administrative Procedure Act
This final rule deletes only redundant or obsolete provisions. It also redesignates current regulations without making any substantive changes. Accordingly, it is exempt from the prior notice-and-comment and delayed-effective-date requirements of 5 U.S.C. 553.
Executive Order 12866
Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity). The Executive Order classifies a “significant regulatory action,” requiring review by the Office of Management and Budget (OMB) unless OMB waives such review, as any regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order.Start Printed Page 33705
The economic, interagency, budgetary, legal, and policy implications of this rule have been examined, and it has been determined not to be a significant regulatory action under Executive Order 12866.
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any given year. This rule will have no such effect on State, local, and tribal governments, or on the private sector.
Paperwork Reduction Act of 1995
This document contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521).
Regulatory Flexibility Act
The initial and final regulatory flexibility analysis requirements of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 601-612, are not applicable to this rule because a notice of proposed rulemaking is not required. Even so, the Secretary hereby certifies that this regulatory amendment will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act. This amendment will not directly affect any small entities. Therefore, this amendment is also exempt pursuant to 5 U.S.C. 605(b) from the initial and final regulatory flexibility analysis requirements of sections 603-604.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance Program number and title for the program affected by this document are 64.114, Veterans Housing—Guaranteed and Insured Loans.
The Secretary of Veterans Affairs, or designee, approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. John R. Gingrich, Chief of Staff, Department of Veterans Affairs, approved this document on June 4, 2010 for publication.Start List of Subjects
List of Subjects in 38 CFR Part 36
- Individuals with disabilities
- Loan programs—housing and community development
- Loan programs—Indians
- Loan programs—veterans
- Manufactured homes
- Mortgage insurance
- Reporting and recordkeeping requirements
Dated: June 9, 2010.
Robert C. McFetridge,
Director of Regulation Policy and Management, Office of the General Counsel.
For the reasons stated in the preamble, VA amendsEnd Amendment Part Start Part
PART 36—LOAN GUARANTYEnd Part Start Amendment Part
1. The authority citation for part 36 continues to read as follows:End Amendment Part
Subpart B—[Removed]Start Amendment Part
2. Remove subpart B.End Amendment Part
Subpart F—[Redesignated as Subpart B]Start Amendment Part
3. Redesignate subpart F as new subpart B.End Amendment Part
4. Redesignate §§ 36.4800 through 36.4893 as follows:End Amendment Part
|Old section||New section|
|36.4836 [Reserved]||36.4336 [Reserved]|
|36.4858 [Reserved]||36.4358 [Reserved]|
[FR Doc. 2010-14156 Filed 6-14-10; 8:45 am]
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