[Federal Register: November 5, 2003 (Volume 68, Number 214)]
[Notices]
[Page 62620-62621]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05no03-101]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment; Prohibited Transaction Exemption 88-59 Residential
Mortgage Financing Arrangements Involving Employee Benefit Plans
AGENCY: Employee Benefits Security Administration, Department of Labor.
ACTION: Notice.
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SUMMARY: The Department of Labor, as part of its continuing effort to
reduce paperwork and respondent burden, conducts a preclearance
consultation program to provide the general public and Federal agencies
with an opportunity to comment on proposed and continuing collections
of information in accordance with the Paperwork Reduction Act of 1995
(PRA 95). This program helps to ensure that requested data can be
provided in the desired format, reporting burden (time and financial
resources) is minimized, collection instruments are clearly understood,
and the impact of collection requirements on respondents can be
properly assessed. Currently, the Employee Benefits Security
Administration is soliciting comments on the proposed extension of the
information collection provisions of Prohibited Transaction Class
Exemption 88-59.
A copy of the information collection request (ICR) can be obtained
by contacting the individual shown in the Addresses section of this
notice.
DATES: Written comments must be submitted to the office shown in the
Addresses section on or before January 5, 2004.
ADDRESSES: Gerald B. Lindrew, Department of Labor, Employee Benefits
Security Administration, 200 Constitution Avenue, NW., Washington, DC
20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
I. Background
Prohibited Transaction Class Exemption 88-59 provides an exemption
from prohibited transaction provisions of the Employment Retirement
Income Security Act of 1974 (ERISA) and from certain taxes imposed by
the Internal Revenue Code of 1986. The exemption permits, under certain
conditions, an employee benefit plan to provide mortgage financing to
purchasers of residential dwelling units. The mortgage financing may be
either by making or participating in loans directly to purchasers or by
purchasing mortgage loans or participation interests in mortgage loans
originated by a third party. Plan investments in real estate mortgage
loans typically involve a continuing relationship between the seller of
the mortgage loan and the plan for purposes of servicing the mortgage
loan investment. This provision of services by the seller creates a
party in interest relationship between such servicer and the investing
plan. Accordingly, any subsequent purchase of mortgage loans from such
existing party in interest service provider results in a prohibited
transaction.
By requiring that records pertaining to the exempted transaction be
maintained for the duration of any loan made pursuant to Prohibited
Transaction Class Exemption 88-59, this ICR insures that the exemption
is not abused, the rights of the participants and beneficiaries are
protected, and that compliance with the exemption's conditions can be
confirmed. The exemption affects participants and beneficiaries of the
plans that are involved in such transactions as well as the seller of
the mortgage loan.
II. Review Focus
The Department of Labor (Department) is particularly interested in
comments that:
[sbull] Evaluate whether the proposed collection of information is
necessary
[[Page 62621]]
for the proper performance of the functions of the agency, including
whether the information will have practical utility;
[sbull] Evaluate the accuracy of the agency's estimate of the
burden of the proposed collection of information, including the
validity of the methodology and assumptions used;
[sbull] Enhance the quality, utility, and clarity of the
information to be collected; and
[sbull] Minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., permitting
electronic submissions of responses.
III. Current Actions
The Office of Management and Budget's (OMB) approval of this ICR
will expire on January 31, 2004. After considering comments received in
response to this notice, the Department intends to submit the ICR to
OMB for continuing approval. No change to the existing ICR is proposed
or made at this time.
Agency: Employee Benefits Security Administration, Department of
Labor.
Title: Prohibited Transaction Class Exemption 88-59; Residential
Mortgage Financing Arrangements.
Type of Review: Extension of a currently approved collection of
information.
OMB Number: 1210-0095.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Respondents: 420.
Responses: 2100.
Average Response Time: 5 minutes.
Estimated Total Burden Hours: 175.
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval of the information
collection request; they will also become a matter of public record.
Dated: October 30, 2003.
Gerald B. Lindrew
Deputy Director, Office of Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 03-27829 Filed 11-4-03; 8:45 am]
BILLING CODE 4510-29-P