[Federal Register: June 11, 1997 (Volume 62, Number 112)] [Notices] [Page 31981-32011] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr11jn97-161] [[Page 31981]] _______________________________________________________________________ Part VI Department of Housing and Urban Development _______________________________________________________________________ Real Estate Settlement Procedures Act; Revision of Special Information Booklet; Notice [[Page 31982]] ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-4243-N-01] Real Estate Settlement Procedures Act; Notice of Revision of Special Information Booklet AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD. ACTION: Notice; revision of special information booklet. ----------------------------------------------------------------------- SUMMARY: This notice announces the availability of a revised special information booklet as required by the Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. 2601-17) and prescribed by the Assistant Secretary for Housing--Federal Housing Commissioner. ADDRESSES: The special information booklet that follows this notice is also available by sending a request to the Director, Office of Consumer and Regulatory Affairs, Attention: RESPA/Special Information Booklet, Room 9146, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. FOR FURTHER INFORMATION CONTACT: David R. Williamson, Office of Consumer and Regulatory Affairs, (202) 708-4560, Room 9146, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. (This is not a toll-free number.) Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at (800) 877-8339. SUPPLEMENTARY INFORMATION: On April 23, 1987, the Department issued the current edition of the special information booklet (52 FR 13566). That version provided a description of the nature and purpose of the costs relating to a real estate settlement, and an explanation of the HUD-1 Settlement Statement, escrow accounts used in connection with the loan, providers of real estate settlement services, and unfair practices and unreasonable or unnecessary charges. The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601-17) (RESPA) requires lenders to provide the special information booklet to each person borrowing money to finance the purchase of residential real estate within 3 business days after receiving the application. Since 1987, RESPA has been amended on several occasions. (Cranston- Gonzalez National Affordable Housing Act, 1990, Public Law 101-625; the Dire Emergency Supplemental Appropriations Act, 1991, Public Law 102- 27; the Housing and Community Development Act of 1992, Public Law 102- 550; the Riegle Community Development and Regulatory Improvement Act of 1994, Public Law 103-325; the Economic Growth and Regulatory Paperwork Reduction Act of 1996, Public Law 104-208.) Consequently, certain parts of the special information booklet are outdated. Pursuant to 12 U.S.C. 2603, and 24 CFR 3500.6(b) of the Department's RESPA regulations, the Assistant Secretary for Housing--Federal Housing Commissioner has revised the special information booklet by addressing the legislative amendments, and by updating informational references and the booklet's discussion of the HUD-1 Settlement Statement. The revised booklet is published in today's Federal Register following this notice. More specifically, the Assistant Secretary for Housing--Federal Housing Commissioner has revised the booklet to reflect changes in RESPA coverage as well as additional required disclosures relating to loan servicing transfers, escrow accounts, and affiliated service providers. The explanation of settlement services has been expanded to include current lending and settlement charges, such as fees for mortgage brokers, Computer Loan Origination (CLO) services, tax service, flood insurance, and lead based paint inspection services. The booklet was also updated to include other statutes related to fair credit, fair lending, flood insurance and lead based paint hazards which affect the lending and settlement process. The Department will make a copy of the special information booklet available to any firm planning to publish the booklet for distribution to lenders. Firms interested in securing a copy should send their requests to the Director, Office of Consumer and Regulatory Affairs, Attention: RESPA/Special Information Booklet, Room 9146, U.S. Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. The booklet will also be available through the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. The Department does not have a sufficient supply of the booklet and form to provide copies to all settlement service providers. Lenders may use the booklet as soon as it becomes available through normal sources. Previous editions may be used until supplies are exhausted or until September 9, 1997 whichever is earlier. The Department is also making the booklet available to settlement service providers and consumers at the following web site address: http://www.hud.gov/fha/res/respa--hm.html Paperwork Reduction Act The information collection requirements for the special information booklet have been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520), and assigned OMB control number 2502-0265. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid control number. Environmental Impact In accordance with 24 CFR 50.19(c)(1) of the Department's regulations, published in a final rule on September 27, 1996 (61 FR 50914), this notice and the special information booklet do not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate property acquisition, disposition, lease, rehabilitation, alteration, demolition, or new construction, or set out or provide for standards for construction or construction materials, manufactured housing, or occupancy. Therefore, this notice and the special information booklet are categorically excluded from the requirements of the National Environmental Policy Act. The Department is hereby publishing the revised special information booklet to provide appropriate notice of its contents. The text of the special information booklet for the Real Estate Settlement Procedures Act follows this notice. Dated: June 2, 1997. Nicolas P. Retsinas, Assistant Secretary for Housing--Federal Housing Commissioner. [FR Doc. 97-15301 Filed 6-10-97; 8:45 am] BILLING CODE 4210-27-C [[Page 31983]] [GRAPHIC] [TIFF OMITTED] TN11JN97.000 [[Page 31984]] [GRAPHIC] [TIFF OMITTED] TN11JN97.001 [[Page 31985]] [GRAPHIC] [TIFF OMITTED] TN11JN97.002 [[Page 31986]] [GRAPHIC] [TIFF OMITTED] TN11JN97.003 [[Page 31987]] [GRAPHIC] [TIFF OMITTED] TN11JN97.004 [[Page 31988]] [GRAPHIC] [TIFF OMITTED] TN11JN97.005 [[Page 31989]] [GRAPHIC] [TIFF OMITTED] TN11JN97.006 [[Page 31990]] [GRAPHIC] [TIFF OMITTED] TN11JN97.007 [[Page 31991]] [GRAPHIC] [TIFF OMITTED] TN11JN97.008 [[Page 31992]] [GRAPHIC] [TIFF OMITTED] TN11JN97.009 [[Page 31993]] [GRAPHIC] [TIFF OMITTED] TN11JN97.010 [[Page 31994]] [GRAPHIC] [TIFF OMITTED] TN11JN97.011 [[Page 31995]] [GRAPHIC] [TIFF OMITTED] TN11JN97.012 [[Page 31996]] [GRAPHIC] [TIFF OMITTED] TN11JN97.013 [[Page 31997]] [GRAPHIC] [TIFF OMITTED] TN11JN97.014 [[Page 31998]] [GRAPHIC] [TIFF OMITTED] TN11JN97.015 [[Page 31999]] [GRAPHIC] [TIFF OMITTED] TN11JN97.016 [[Page 32000]] [GRAPHIC] [TIFF OMITTED] TN11JN97.017 [[Page 32001]] [GRAPHIC] [TIFF OMITTED] TN11JN97.018 [[Page 32002]] [GRAPHIC] [TIFF OMITTED] TN11JN97.019 [[Page 32003]] [GRAPHIC] [TIFF OMITTED] TN11JN97.020 [[Page 32004]] [GRAPHIC] [TIFF OMITTED] TN11JN97.021 [[Page 32005]] [GRAPHIC] [TIFF OMITTED] TN11JN97.022 [[Page 32006]] [GRAPHIC] [TIFF OMITTED] TN11JN97.023 [[Page 32007]] [GRAPHIC] [TIFF OMITTED] TN11JN97.024 [[Page 32008]] [GRAPHIC] [TIFF OMITTED] TN11JN97.025 [[Page 32009]] [GRAPHIC] [TIFF OMITTED] TN11JN97.026 [[Page 32010]] [GRAPHIC] [TIFF OMITTED] TN11JN97.027 [[Page 32011]] [GRAPHIC] [TIFF OMITTED] TN11JN97.028 [FR Doc. 97-15301 Filed 6-10-97; 8:45 am] BILLING CODE 4210-27-C