[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