Conclusiones de la propuesta

Proposed Rule Stage

82. Federal Housing Administration (FHA): Strengthening the Home Equity Conversion Mortgages (HECM) Program To Promote Sustained Homeownership (FR–5353)

Priority: Other Significant.

Legal Authority: 12 U.S.C. 1715b, 1715z to 1720; 42 U.S.C. 3535(d)

CFR Citation: 24 CFR 206.19; 24 CFR 206.32; 24 CFR 206.25; 24 CFR 206.27; 24 CFR 206.29; 24 CFR 206.38.24; 24 CFR 206.51; 24 CFR 206.53; 24 CFR 206.105; 24 CFR 206.107; 24 CFR 206.124; 24 CFR 206.129; 24 CFR 206.140, 206.142; 24 CFR 206.203, 19; 24 CFR 206.58; 24 CFR 206.47.

Legal Deadline: None.

Abstract: HUD is taking another step to reform and strengthen the mortgage insurance functions and responsibilities of the Federal Housing Administration (FHA), and concomitantly protect the individuals and families that use FHA- mortgage products. This proposed rule would revise the regulations governing FHA’s Home Equity Conversion Mortgage (HECM) program, which is FHA’s reverse mortgage program that enables senior homeowners who have equity in their homes to withdraw a portion of the accumulated equity. Most significantly, this rule proposes to require FHA-approved mortgagees that originate HECM mortgages (HECM mortgagees) to perform a financial capacity and credit history assessment of prospective HECM mortgagors prior to loan approval and closing.

Mortgagees will be required to evaluate whether the HECM mortgagor’s cash flow and credit history support the mortgagor’s ability to comply with the obligations of the HECM and are sufficient to meet recurring living expenses. A mortgagee may deny the HECM loan application if the prospective mortgagor fails either the financial capacity or credit history assessment. As an alternative to declining the HECM loan application, the mortgagee may require the establishment of a principal limit set- aside for payment of property charges. The proposed rule would also cap the amount of insurance benefits paid in connection with a claim involving amounts advanced by the mortgagee on behalf of a HECM mortgagor who fails to pay such property charges when the HECM proceeds have been exhausted and establish a new property inspection requirement to insure that home secured with a HECM mortgage are adequately maintained and meet applicable property standards. The proposed rule would also make several non-

substantive changes to reflect the statutory flexibility provided to HUD in establishing the mortgage insurance premiums for FHA-insured mortgages, conform the regulations to existing HUD interpretations and industry practices regarding HECM program requirements, and reduce administrative paperwork.

Statement of Need: HUD does not currently require HECM mortgagees to verify the mortgagor’s income, assets,

and debt obligations. Neither do the HECM regulations require a mortgagee to assess the mortgagor’s credit history and capacity to pay future living expenses and meet all other future financial obligations related to the property under the HECM loan. Such a financial capacity and credit history assessment is a prudent underwriting practice currently required by mortgagees for FHA forward mortgage products. Based on data available to HUD, HECM delinquencies are growing and occurring soon after origination. This data also indicates that these delinquencies are largely the result of the failure of mortgagors to pay recurring property charges. The proposed rule would address these concerns by requiring that mortgagees determine whether the potential mortgagor has the capacity to pay recurring property charges and meet recurring living expenses.

Summary of Legal Basis: The HECM program is authorized under section 255 of the National Housing Act (12 U.S.C. 1715z to 1720). This rulemaking is undertaken pursuant to the general rulemaking authority granted to the Secretary under section 7(d) of the Department of HUD Act (42 U.S.C. 35335(d)), which authorizes the Secretary to make ‘‘such rules and regulations as may be necessary to carry out his functions, powers, and duties.’’ In addition, the National Housing Act at 12 U.S.C. 1701c(a) uses the exact wording in conferring general rulemaking authority to the Secretary for implementing the insured mortgage programs authorized under the National Housing Act.

Alternatives: Rulemaking is required to ensure that the financial capacity and credit history requirements are generally applicable and enforceable by HUD. Where appropriate, HUD will provide mortgagees with flexibility in

determining the method for conducting the required assessments and for considering additional factors in determining and verifying the financial capacity and credit history of

prospective HECM mortgagors.

Anticipated Cost and Benefits: The benefits of this rule would be the reduced transaction costs and externalities associated with

foreclosure. The costs of the rule would be the additional administrative and financial costs associated with carrying out the required assessments.

Risks: This rule poses no risk to public health, safety, or the environment.

Timetable:

Action Date FR Cite

NPRM ... 12/00/11 Regulatory Flexibility Analysis Required: No.

Small Entities Affected: No.

Government Levels Affected: None.

Agency Contact: Kari B. Hill, Director, Office of Single Family Program

Development, Department of Housing and Urban Development, Office of Housing, 451 7th Street SW.,

Washington, DC 20410, Phone: 202 708– 2121.

RIN: 2502–AI79

HUD—OH

83. • Supportive Housing for Persons

With Disabilities Implementing New Project Rental Assistance Authority (FR–5576)

Priority: Other Significant.

Legal Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013

CFR Citation: 24 CFR 891.

Legal Deadline: None.

Abstract: This proposed rule commences the rulemaking process to implement the project rental assistance authority as provided under the Frank Melville Supportive Housing

Investment Act of 2010 (Pub. L. 111– 374) (Melville Act), which was enacted on January 4, 2011. The Melville Act amended section 811 of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 8013), which authorizes the supportive housing program for persons with disabilities (Section 811 program). The Melville Act made significant changes to the Section 811 program, with one of the most significant changes being the establishment of new project rental assistance authority. This new authority allows HUD to make Section 811 program operating assistance available to State housing agencies and similar organizations for the purposes of granting funds to the development of supportive housing for persons with disabilities and overseeing compliance with the requirements applicable to such housing. This proposed rule establishes the requirements and procedures that would govern the eligibility and use of project rental assistance in HUD’s supportive housing program for persons with disabilities.

Statement of Need: The Melville Act makes many important reforms and improvements to the Section 811 program. One of the most significant new features introduced by the Melville Act is the establishment of new project

rental assistance authority (section 811(b)(3) of the Cranston-Gonzalez National Affordable Housing Act, as amended by the Melville Act) that is separate from the existing project rental assistance under the Section 811 program that is available to cover operating costs. Although the Melville Act establishes the prerequisite statutory framework, the full and successful implementation of the new project rental assistance authority requires rulemaking. This proposed rule addresses the need for rulemaking by establishing the necessary policies, procedures, and other requirements that will govern the eligibility and use of project rental assistance. HUD intends to implement other changes made by the Melville Act through separate

rulemaking.

Summary of Legal Basis: As noted, the Melville Act amended section 811 of the Cranston-Gonzalez National Affordable Housing Act to establish new project rental assistance authority. This rulemaking is undertaken pursuant to the general rulemaking authority granted to the Secretary under section 7(d) of the Department of HUD Act (42 U.S.C. 35335(d)), which authorizes the Secretary to make ‘‘such rules and regulations as may be necessary to carry out his functions, powers, and duties.’’

Alternatives: Rulemaking is required to ensure that the new requirements and procedures governing the eligibility and use of project rental assistance are generally applicable to participants in HUD’s supportive housing program for persons with disabilities and

enforceable by HUD.

Anticipated Cost and Benefits: The new project rental assistance authority offers another method of financing for supportive housing for persons with disabilities for projects that do not receive capital advances. The new authority is designed to promote and facilitate the creation of integrated supportive housing units, which is achieved by making funds available to State housing agencies and other appropriate entities. While there may be incremental costs associated with compliance with the new requirements, to the extent that program participants incur such costs, it will be as a result of their voluntary participation in the project rental assistance component of the Section 811 program. The benefits are increased affordability of providing housing for persons with disabilities.

Risks: This rule poses no risk to public health, safety, or the environment

Timetable:

Action Date FR Cite

NPRM ... 02/00/12 Regulatory Flexibility Analysis Required: No.

Small Entities Affected: No.

Government Levels Affected: None.

Agency Contact: Benjamin T. Metcalf, Senior Advisor, Office of Multifamily Houisng Programs, Department of Housing and Urban Development, Office of Housing, 451 7th Street SW.,

Washington, DC 20410, Phone: 202 708– 2495.

RIN: 2502–AJ10

HUD—OFFICE OF PUBLIC AND INDIAN