Federal Housing Administration (FHA): Standardizing Method of Payment for FHA Insurance Claims, 51466-51469 [2015-20827]

Download as PDF Lhorne on DSK5TPTVN1PROD with RULES 51466 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations done without intending to relinquish his/her U.S. nationality. In addition to the time spent processing renunciations overseas and domestically, the full cost of processing renunciations includes a portion of overhead costs that support consular operations overseas per OMB Circular A–25, Revised. These costs include overseas rent and security, information technology equipment, and applicable headquarters support. The Consular Time Charge of $135 per hour was not used in calculating the cost of a renunciation service. The Consular Time Charge is used in conjunction with other for-fee services listed on the Schedule of Fees for Consular Services that are provided outside of the office or outside of normal working hours. Four comments asserted that the renunciation should be made more efficient rather than more costly. A few asked if there were ways to reduce bureaucracy and paperwork to lower the cost of the service. Specifically, one commenter pointed to the German renunciation process, which involves an online application, mailed certified copies of certain documents, and no inperson interviews. As described above, certain legal requirements exist in the U.S. system, unique to our laws and jurisprudence, to protect both the integrity of the process and the rights of those renouncing. The renunciation process involves significant safeguards to ensure that the renunciant is a U.S. national, fully understands the serious consequences of renunciation, and seeks to renounce voluntarily and intentionally. In short, the comprehensive process of expatriation under U.S. law does not impinge, but rather protects, the right of expatriation. Finally, two comments raised questions about payment options and sought clarification on the effective date for the fee change. The new fee for processing renunciations took effect September 12, 2014. Payment by credit card (at most posts) or cash (in local or U.S. currency) is accepted at post at the time that the oath of renunciation is sworn. In addition to the comments on the renunciation fee increase, the Department also received eight comments about the changes in immigrant and nonimmigrant visa fees. Most sought clarification on how the visa fees were changing, which payment options are available, and when the new fees will go into effect. One commenter asserted that the visa fees are set too low. All tiered immigrant and nonimmigrant visa fees addressed in this rulemaking are set to reflect the VerDate Sep<11>2014 15:04 Aug 24, 2015 Jkt 235001 costs of providing each service. The new visa fees went into effect on September 12, 2014. Further details on particular fees, including payment options, can be found on the Web site of the embassy or consulate where the applicant would like to make a visa appointment. Conclusion The Department adjusted the fees in light of the CoSM’s findings that the U.S. government was not fully covering its costs for providing these consular services. Pursuant to OMB guidance, the Department endeavors to recover the cost of providing services that benefit specific individuals, as opposed to the general public. See OMB Circular A–25, ¶ 6(a)(1), (a)(2)(a). For this reason, the Department has adjusted the Schedule. Regulatory Findings For a summary of the regulatory findings and analyses regarding this rulemaking, please refer to the findings and analyses published with the interim final rule, which can be found at 79 FR 51247, which are adopted herein. The rule became effective September 6, 2014. As noted above, the Department has considered the comments submitted in response to the interim final rule, and does not adopt them. Thus, the rule remains in effect. This proposed rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, as supplemented by Executive Order 13563, Improving Regulation and Regulatory Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of Executive Order 12866 or under section 1 of Executive Order 13563. OMB has not reviewed it under those Orders. The Department of State has also considered this rule in light of Executive Order 13563, dated January 18, 2011, and affirms that this regulation is consistent with the guidance therein. List of Subjects in 22 CFR Part 22 Consular services, Fees, Passports, and Visas. Accordingly, the interim final rule amending 22 CFR part 22, which was published in the Federal Register, 79 FR 51247, on August 28, 2014 (Public Notice 8850), effective September 6, 2014, is adopted. Dated: August 10, 2015. Patrick F. Kennedy, Under Secretary of State for Management, U.S. Department of State. [FR Doc. 2015–21042 Filed 8–24–15; 8:45 am] BILLING CODE 4710–06–P PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 203, 207, 220, 221, 232, 236 and 241 [Docket No. FR–5805–F–02] RIN 2502–AJ26 Federal Housing Administration (FHA): Standardizing Method of Payment for FHA Insurance Claims Office of the Assistant Secretary for Housing-Federal Housing Commissioner, HUD. ACTION: Final rule. AGENCY: This final rule is a costsavings measure to update HUD’s regulations regarding the payment of FHA insurance claims in debentures. Section 520(a) of the National Housing Act grants the Secretary discretion to pay insurance claims in cash or debentures. Although some sections of HUD’s regulations have provided mortgagees the option to elect payment of FHA insurance claims in debentures, HUD has not paid an FHA insurance claim in debentures under these regulations in approximately 5 years. This final rule amends applicable FHA regulations to bring consistency in determining the method of payment for FHA insurance claims. This final rule follows publication of the February 20, 2015, proposed rule and adopts the proposed rule without change. DATES: Effective Date: September 24, 2015. FOR FURTHER INFORMATION CONTACT: For information about: HUD’s Single Family Housing program, contact Ivery Himes, Director, Office of Single Family Asset Management, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 9172, Washington, DC 20410; telephone number 202–708–1672; HUD’s Multifamily Housing program, contact Sivert Ritchie, Multifamily Claims Branch, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 6252, Washington, DC 20410–8000; telephone number 202–708–2510. The telephone numbers listed above are not toll-free numbers. Persons with hearing or speech impairments may access these numbers through TTY by calling the Federal Relay Service at 800–877–8339 (this is a toll-free number). SUPPLEMENTARY INFORMATION: SUMMARY: I. Background—the February 20, 2015, Proposed Rule On February 20, 2015, HUD published a rule in the Federal Register, at 80 FR E:\FR\FM\25AUR1.SGM 25AUR1 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations 9253, proposing to bring consistency and uniformity to the payment of FHA insurance claims among FHA programs. Under section 520(a) of the National Housing Act, the Secretary has the discretion to pay insurance claims in either cash or debentures.1 HUD pursued this proposed rule because some of FHA’s regulations provided mortgagees with the ability to request and receive payment of an insurance claim on a loan insured under the National Housing Act in debentures. As a result of these regulations, HUD was required to maintain an interagency agreement with the United States Department of the Treasury (Treasury), which is the agency responsible for issuing and servicing debentures, costing HUD over $206,000 per year, despite the fact that there are no current debentures being serviced by Treasury for HUD, and HUD has not paid an FHA insurance claim in debentures in approximately 5 years. The February 20, 2015, rule proposed amending FHA’s regulations to bring uniformity and consistency in the payment of FHA insurance claims among FHA programs in the following sections: §§ 203.400, 203.476, 203.478, 207.259, 220.751, 220.760, 220.822, 221.762, 232.885, 236.265, 241.261, 241.885, and 241.1205. As a result of these changes, § 220.760 was proposed to be removed because it was unnecessary. Please see the February 20, 2015, proposed rule for a more detailed description of the proposed changes. II. This Final Rule The public comment period for the proposed rule closed on April 21, 2015, and HUD did not receive any public comments. As a result, this final rule adopts the proposed rule without change. III. Findings and Certifications Lhorne on DSK5TPTVN1PROD with RULES Regulatory Review—Executive Order 13563 Executive Order 13563 (Improving Regulations and Regulatory Review) directs executive agencies to analyze regulations that are ‘‘outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned.’’ Executive Order 13563 also directs that, where relevant, feasible, and consistent with regulatory objectives, and to the extent permitted by law, agencies are to identify and consider regulatory approaches that reduce burdens and 1 12 U.S.C. 1735d. VerDate Sep<11>2014 15:04 Aug 24, 2015 Jkt 235001 51467 maintain flexibility and freedom of choice for the public. Consistent with Executive Order 13563, the purposes of the reform to FHA’s regulations regarding Secretarial discretion of the type of FHA insurance claim payment are to eliminate unnecessary spending and to bring consistency regarding the payment of insurance claims across FHA programs. As discussed in the preamble, the interagency agreement with Treasury costs HUD over $206,000 per year, even though HUD currently does not have any debentures for payment of FHA insurance claims in circulation, and has not made a payment in debentures in approximately 5 years for these insurance claims. In addition, different FHA programs treat payment of FHA insurance claims differently, and this final rule simplifies the regulations so that the authority to determine the method of claim payment rests with the Secretary who can determine whether it is fiscally prudent to offer FHA insurance claim payments in debentures, cash, or both. publishing any rule that has federalism implications if the rule either (i) imposes substantial direct compliance costs on State and local governments and is not required by statute or (ii) preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive order. This final rule does not have federalism implications and does not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This final rule only changes the party which has the authority to determine the method of payment of FHA single family, multifamily, and healthcare insurance claims. Accordingly, the undersigned certifies that this final rule will not have a significant economic impact on a substantial number of small entities. Paperwork Reduction Act Environmental Impact This final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate the following: real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction. Furthermore, the rule does not establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). Executive Order 13132, Federalism Executive Order 13132 (entitled ‘‘Federalism’’) prohibits an agency from PO 00000 Frm 00045 Fmt 4700 Sfmt 4700 Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531– 1538) (UMRA) establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and on the private sector. This final rule does not impose any Federal mandates on any State, local, or tribal governments or on the private sector, within the meaning of the UMRA. This final rule reduces information collection requirements already submitted to the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501– 3520). In accordance with the Paperwork Reduction Act, 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 currently valid OMB control number. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance number for Mortgage Insurance-Homes is 14.117; Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities is 14.129; Mortgage Insurance-Rental Housing is 14.134; and Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects is 14.155. List of Subjects 24 CFR Part 203 Hawaiian Natives, Home improvement, Indians—lands, Loan programs—housing and community development; Mortgage insurance; Reporting and recordkeeping requirements; Solar energy. 24 CFR Part 207 Manufactured homes, Mortgage insurance, Reporting and recordkeeping requirements, Solar energy. E:\FR\FM\25AUR1.SGM 25AUR1 51468 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations 24 CFR Part 220 Home improvement, Loan programs— housing and community development, Mortgage insurance, Reporting and recordkeeping requirements, Urban renewal. 24 CFR Part 221 Low and moderate income housing, Mortgage insurance, Reporting and recordkeeping requirements. 24 CFR Part 232 § 203.478 Fire prevention, Health facilities, Loan programs—health, Loan programs—housing and community development, Mortgage insurance, Nursing homes, Reporting and recordkeeping requirements. * * * * (c) Method of payment. Payment of an insurance claim shall be made in cash, in debentures, or in a combination of both, as determined by the Commissioner either at, or prior to, the time of payment. * * * * * Grant programs—housing and community development, Low and moderate income housing, Mortgage insurance, Rent subsidies, Reporting and recordkeeping requirements. PART 207—MULTIFAMILY HOUSING MORTGAGE INSURANCE PART 203—SINGLE FAMILY MORTGAGE INSURANCE 1. The authority citation for part 203 is revised to read as follows: ■ Authority: 12 U.S.C. 1709, 1710, 1715b, 1715z–16, 1715u, 1717z–21, and 1735d; 15 U.S.C. 1639c; 42 U.S.C. 3535(d). 2. Revise § 203.400 to read as follows: Lhorne on DSK5TPTVN1PROD with RULES Method of payment. (a) If the application for insurance benefits is acceptable to the Commissioner, payment of the insurance claim shall be made in cash, in debentures, or in a combination of both, as determined by the Commissioner either at, or prior to, the time of payment. (b) An insurance claim paid on a mortgage insured under section 223(e) of the National Housing Act shall be paid in cash from the Special Risk Insurance Fund. ■ 3. Revise § 203.476(g) to read as follows: 10. In § 220.822 remove and reserve paragraph (b). ■ PART 221—LOW COST AND MODERATE INCOME MORTGAGE INSURANCE—SAVINGS CLAUSE 11. The authority citation for part 221 is revised to read as follows: ■ Authority: 12 U.S.C. 1715b, 1715l, and 1735d; 42 U.S.C. 3535(d). § 221.762 [Amended] 12. In § 221.762 remove and reserve paragraph (a). ■ Insurance Benefits. (a) Method of payment. (1) Upon either an assignment of the mortgage to the Commissioner or a conveyance of the property to the Commissioner in accordance with requirements in § 207.258, payment of an insurance claim shall be made in cash, in debentures, or in a combination of both, as determined by the Commissioner either at, or prior to, the time of payment. (2) An insurance claim paid on a mortgage insured under section 223(e) of the National Housing Act shall be paid in cash from the Special Risk Insurance Fund. * * * * * PART 220—MORTGAGE INSURANCE AND INSURED IMPROVEMENT LOANS FOR URBAN RENEWAL AND CONCENTRATED DEVELOPMENT 7. The authority citation for part 220 is revised to read as follows: ■ Authority: 12 U.S.C. 1713, 1715b, 1715k, and 1735d; 42 U.S.C. 3535(d). 8. Revise § 220.751(a) to read as follows: ■ * * Jkt 235001 [Amended] § 207.259 (a) All of the provisions of subpart B, part 207, of this chapter, covering 15:04 Aug 24, 2015 § 220.822 6. Amend § 207.259 by revising paragraph (a), to read as follows: ■ § 220.751 VerDate Sep<11>2014 [Removed] 9. Remove § 220.760. PART 232—MORTGAGE INSURANCE FOR NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES, AND ASSISTED LIVING FACILITIES Claim application and items to * ■ Authority: 12 U.S.C. 1701z–11(e), 1709(c)(1), 1713, 1715(b), and 1735d; 42 U.S.C. 3535(d). § 203.476 be filed. * § 220.760 5. The authority citation for part 207 is revised to read as follows: Home improvement, Loan programs— housing and community development, Mortgage insurance, Reporting and recordkeeping requirements, Solar energy. Accordingly, for the reasons stated above, HUD amends 24 CFR parts 203, 207, 220, 221, 232, 236, and 241 as follows: * mortgages insured under section 207 of the National Housing Act, apply with full force and effect to multifamily project mortgages insured under section 220 of the National Housing Act, except § 207.256b Modification of mortgage terms. * * * * * ■ ■ 24 CFR Part 241 § 203.400 Payment of insurance benefits. * 24 CFR Part 236 ■ (g) All property of the borrower held by the lender or to which it is entitled and, if the Commissioner elects to make payments in debentures, all cash held by the lender or to which it is entitled, including deposits made for the account of the borrower and which have not been applied in reduction of the principal loan indebtedness; * * * * * ■ 4. Revise § 203.478(c) to read as follows: PO 00000 Cross-reference. Frm 00046 Fmt 4700 Sfmt 4700 13. The authority citation for part 232 is revised to read as follows: Authority: 12 U.S.C. 1715b, 1715w, 1735d, and 1735f–19; 42 U.S.C. 3535(d). 14. Revise § 232.885(a) to read as follows: ■ § 232.885 Insurance benefits. (a) Method of payment. Payment of an insurance claim shall be made in cash, in debentures, or in a combination of both, as determined by the Commissioner either at, or prior to, the time of payment. * * * * * PART 236—MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENT FOR RENTAL PROJECTS 15. The authority citation for part 236 is revised to read as follows: ■ Authority: 12 U.S.C. 1715b, 1715z–1, and 1735d; 42 U.S.C. 3535(d). § 236.265 [Amended] 16. In § 236.265, remove and reserve paragraph (a). ■ PART 241—SUPPLEMENTARY FINANCING FOR INSURED PROJECT MORTGAGES 17. The authority citation for part 241 is revised to read as follows: ■ E:\FR\FM\25AUR1.SGM 25AUR1 Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations Authority: 12 U.S.C. 1715b, 1715z–6, and 1735d; 42 U.S.C. 3535(d). 18. Revise § 241.261 to read as follows: ■ § 241.261 Payment of insurance benefits. All of the provisions of § 207.259 of this chapter relating to insurance benefits shall apply to multifamily loans insured under this subpart. ■ 19. Revise § 241.885(a) to read as follows: § 241.885 Insurance benefits. (a) Method of payment. Payment of insurance claims shall be made in cash, in debentures, or in a combination of both, as determined by the Commissioner either at, or prior to, the time of payment. * * * * * ■ 20. Revise § 241.1205 to read as follows: § 241.1205 Payment of insurance benefits. All the provisions of § 207.259 of this chapter relating to insurance benefits shall apply to an equity or acquisition loan insured under subpart F of this part. Dated: August 12, 2015. Edward L. Golding, Principal Deputy, Assistant Secretary for Housing. Approved: August 12, 2015. Nani A. Coloretti, Deputy Secretary. [FR Doc. 2015–20827 Filed 8–24–15; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2015–0722] Drawbridge Operation Regulations; Atlantic Intracoastal Waterway, Wrightsville Beach, NC Coast Guard, DHS. Notice of deviation from drawbridge regulation. AGENCY: ACTION: The Coast Guard has issued a temporary deviation from the operating schedule that governs the S. R. 74 Bridge across the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, NC. This deviation is necessary to facilitate the annual Beach2Battleship Iron and Half-Iron Distance Triathlons. This deviation allows the bridge to remain in the closed-to-navigation position. Lhorne on DSK5TPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 15:04 Aug 24, 2015 Jkt 235001 This deviation is effective from 6:30 a.m. to 11 a.m. on October 17, 2015. ADDRESSES: The docket for this deviation, [USCG–2015–0722], is available at https://www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH’’. Click on Open Docket Folder on the line associated with this deviation. You may also visit the Docket Management Facility in Room W12–140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Mr. Hal R. Pitts, Bridge Administration Branch Fifth District, Coast Guard; telephone (757) 398–6222, email Hal.R.Pitts@uscg.mil. If you have questions on viewing the docket, call Cheryl Collins, Program Manager, Docket Operations, telephone 202–366–9826. SUPPLEMENTARY INFORMATION: The North Carolina Department of Transportation, who owns and operates the S. R. 74 Bridge, has requested a temporary deviation from the current operating regulations set out in 33 CFR 117.821(a)(4), to facilitate the annual Beach2Battleship Iron and Half-Iron Distance Triathlons. Under the normal operating schedule for the S. R. 74 Bridge across the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, NC in 33 CFR 117.821(a)(4); the draw need only open on the hour between 7 a.m. and 7 p.m. and open on demand between 7 p.m. and 7 a.m. The bridge has a vertical clearance in the closed-to-navigation position of 20 feet above mean high water. Under this temporary deviation, the bridge will be closed to navigation from 6:30 a.m. to 11 a.m. on October 17, 2015. The Atlantic Intracoastal Waterway is used by a variety of vessels including small commercial fishing vessels and recreational vessels. The Coast Guard has carefully coordinated the restrictions with commercial and recreational waterway users. Vessels able to pass through the bridge in the closed position may do so at anytime. The bridge will be able to open for emergencies and there is no alternate route for vessels unable to pass through the bridge in the closed position. The Coast Guard will also inform the users of the waterways through our Local and Broadcast Notice to Mariners of the change in operating DATES: PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 51469 schedule for the bridge so that vessels can arrange their transits to minimize any impacts caused by the temporary deviation. In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular operating schedule immediately at the end of the effective period of this temporary deviation. This deviation from the operating regulations is authorized under 33 CFR 117.35. Dated: August 19, 2015. Hal R. Pitts, Bridge Program Manager, Fifth Coast Guard District. [FR Doc. 2015–20912 Filed 8–24–15; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2015–0723] Drawbridge Operation Regulations; Northeast Cape Fear River, Wilmington, NC Coast Guard, DHS. Notice of deviation from drawbridge regulation. AGENCY: ACTION: The Coast Guard has issued a temporary deviation from the operating schedule that governs the Isabel S. Holmes Bridge across the Northeast Cape Fear River, mile 1.0, at Wilmington, NC. This deviation is necessary to facilitate the annual Beach2Battleship Iron and Half-Iron Distance Triathlons. This deviation allows the bridge to remain in the closed-to-navigation position. DATES: This deviation is effective from 9:30 a.m. to 6 p.m. on October 17, 2015. ADDRESSES: The docket for this deviation, [USCG–2015–0723], is available at https://www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH’’. Click on Open Docket Folder on the line associated with this deviation. You may also visit the Docket Management Facility in Room W12–140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Mr. Hal R. Pitts, Bridge Administration Branch Fifth District, Coast Guard; telephone (757) SUMMARY: E:\FR\FM\25AUR1.SGM 25AUR1

Agencies

[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Rules and Regulations]
[Pages 51466-51469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20827]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 203, 207, 220, 221, 232, 236 and 241

[Docket No. FR-5805-F-02]
RIN 2502-AJ26


Federal Housing Administration (FHA): Standardizing Method of 
Payment for FHA Insurance Claims

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule is a cost-savings measure to update HUD's 
regulations regarding the payment of FHA insurance claims in 
debentures. Section 520(a) of the National Housing Act grants the 
Secretary discretion to pay insurance claims in cash or debentures. 
Although some sections of HUD's regulations have provided mortgagees 
the option to elect payment of FHA insurance claims in debentures, HUD 
has not paid an FHA insurance claim in debentures under these 
regulations in approximately 5 years. This final rule amends applicable 
FHA regulations to bring consistency in determining the method of 
payment for FHA insurance claims. This final rule follows publication 
of the February 20, 2015, proposed rule and adopts the proposed rule 
without change.

DATES: Effective Date: September 24, 2015.

FOR FURTHER INFORMATION CONTACT: For information about: HUD's Single 
Family Housing program, contact Ivery Himes, Director, Office of Single 
Family Asset Management, Office of Housing, Department of Housing and 
Urban Development, 451 7th Street SW., Room 9172, Washington, DC 20410; 
telephone number 202-708-1672; HUD's Multifamily Housing program, 
contact Sivert Ritchie, Multifamily Claims Branch, Office of Housing, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
6252, Washington, DC 20410-8000; telephone number 202-708-2510. The 
telephone numbers listed above are not toll-free numbers. Persons with 
hearing or speech impairments may access these numbers through TTY by 
calling the Federal Relay Service at 800-877-8339 (this is a toll-free 
number).

SUPPLEMENTARY INFORMATION: 

I. Background--the February 20, 2015, Proposed Rule

    On February 20, 2015, HUD published a rule in the Federal Register, 
at 80 FR

[[Page 51467]]

9253, proposing to bring consistency and uniformity to the payment of 
FHA insurance claims among FHA programs. Under section 520(a) of the 
National Housing Act, the Secretary has the discretion to pay insurance 
claims in either cash or debentures.\1\ HUD pursued this proposed rule 
because some of FHA's regulations provided mortgagees with the ability 
to request and receive payment of an insurance claim on a loan insured 
under the National Housing Act in debentures. As a result of these 
regulations, HUD was required to maintain an interagency agreement with 
the United States Department of the Treasury (Treasury), which is the 
agency responsible for issuing and servicing debentures, costing HUD 
over $206,000 per year, despite the fact that there are no current 
debentures being serviced by Treasury for HUD, and HUD has not paid an 
FHA insurance claim in debentures in approximately 5 years.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 1735d.
---------------------------------------------------------------------------

    The February 20, 2015, rule proposed amending FHA's regulations to 
bring uniformity and consistency in the payment of FHA insurance claims 
among FHA programs in the following sections: Sec. Sec.  203.400, 
203.476, 203.478, 207.259, 220.751, 220.760, 220.822, 221.762, 232.885, 
236.265, 241.261, 241.885, and 241.1205. As a result of these changes, 
Sec.  220.760 was proposed to be removed because it was unnecessary. 
Please see the February 20, 2015, proposed rule for a more detailed 
description of the proposed changes.

II. This Final Rule

    The public comment period for the proposed rule closed on April 21, 
2015, and HUD did not receive any public comments. As a result, this 
final rule adopts the proposed rule without change.

III. Findings and Certifications

Regulatory Review--Executive Order 13563

    Executive Order 13563 (Improving Regulations and Regulatory Review) 
directs executive agencies to analyze regulations that are ``outmoded, 
ineffective, insufficient, or excessively burdensome, and to modify, 
streamline, expand, or repeal them in accordance with what has been 
learned.'' Executive Order 13563 also directs that, where relevant, 
feasible, and consistent with regulatory objectives, and to the extent 
permitted by law, agencies are to identify and consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public.
    Consistent with Executive Order 13563, the purposes of the reform 
to FHA's regulations regarding Secretarial discretion of the type of 
FHA insurance claim payment are to eliminate unnecessary spending and 
to bring consistency regarding the payment of insurance claims across 
FHA programs. As discussed in the preamble, the interagency agreement 
with Treasury costs HUD over $206,000 per year, even though HUD 
currently does not have any debentures for payment of FHA insurance 
claims in circulation, and has not made a payment in debentures in 
approximately 5 years for these insurance claims. In addition, 
different FHA programs treat payment of FHA insurance claims 
differently, and this final rule simplifies the regulations so that the 
authority to determine the method of claim payment rests with the 
Secretary who can determine whether it is fiscally prudent to offer FHA 
insurance claim payments in debentures, cash, or both.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
This final rule only changes the party which has the authority to 
determine the method of payment of FHA single family, multifamily, and 
healthcare insurance claims. Accordingly, the undersigned certifies 
that this final rule will not have a significant economic impact on a 
substantial number of small entities.

Environmental Impact

    This final rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate the following: 
real property acquisition, disposition, leasing, rehabilitation, 
alteration, demolition, or new construction. Furthermore, the rule does 
not establish, revise, or provide for standards for construction or 
construction materials, manufactured housing, or occupancy. 
Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321).

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either (i) imposes substantial direct compliance costs on State and 
local governments and is not required by statute or (ii) preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This final rule does not have 
federalism implications and does not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments and on the private sector. This final rule does not 
impose any Federal mandates on any State, local, or tribal governments 
or on the private sector, within the meaning of the UMRA.

Paperwork Reduction Act

    This final rule reduces information collection requirements already 
submitted to the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). In accordance 
with the Paperwork Reduction Act, 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 currently valid OMB control number.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for Mortgage 
Insurance-Homes is 14.117; Mortgage Insurance Nursing Homes, 
Intermediate Care Facilities, Board and Care Homes, and Assisted Living 
Facilities is 14.129; Mortgage Insurance-Rental Housing is 14.134; and 
Mortgage Insurance for the Purchase or Refinancing of Existing 
Multifamily Housing Projects is 14.155.

List of Subjects

24 CFR Part 203

    Hawaiian Natives, Home improvement, Indians--lands, Loan programs--
housing and community development; Mortgage insurance; Reporting and 
recordkeeping requirements; Solar energy.

24 CFR Part 207

    Manufactured homes, Mortgage insurance, Reporting and recordkeeping 
requirements, Solar energy.

[[Page 51468]]

24 CFR Part 220

    Home improvement, Loan programs--housing and community development, 
Mortgage insurance, Reporting and recordkeeping requirements, Urban 
renewal.

24 CFR Part 221

    Low and moderate income housing, Mortgage insurance, Reporting and 
recordkeeping requirements.

24 CFR Part 232

    Fire prevention, Health facilities, Loan programs--health, Loan 
programs--housing and community development, Mortgage insurance, 
Nursing homes, Reporting and recordkeeping requirements.

24 CFR Part 236

    Grant programs--housing and community development, Low and moderate 
income housing, Mortgage insurance, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 241

    Home improvement, Loan programs--housing and community development, 
Mortgage insurance, Reporting and recordkeeping requirements, Solar 
energy.

    Accordingly, for the reasons stated above, HUD amends 24 CFR parts 
203, 207, 220, 221, 232, 236, and 241 as follows:

PART 203--SINGLE FAMILY MORTGAGE INSURANCE

0
1. The authority citation for part 203 is revised to read as follows:

     Authority:  12 U.S.C. 1709, 1710, 1715b, 1715z-16, 1715u, 
1717z-21, and 1735d; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

0
2. Revise Sec.  203.400 to read as follows:


Sec.  203.400  Method of payment.

    (a) If the application for insurance benefits is acceptable to the 
Commissioner, payment of the insurance claim shall be made in cash, in 
debentures, or in a combination of both, as determined by the 
Commissioner either at, or prior to, the time of payment.
    (b) An insurance claim paid on a mortgage insured under section 
223(e) of the National Housing Act shall be paid in cash from the 
Special Risk Insurance Fund.

0
3. Revise Sec.  203.476(g) to read as follows:


Sec.  203.476  Claim application and items to be filed.

* * * * *
    (g) All property of the borrower held by the lender or to which it 
is entitled and, if the Commissioner elects to make payments in 
debentures, all cash held by the lender or to which it is entitled, 
including deposits made for the account of the borrower and which have 
not been applied in reduction of the principal loan indebtedness;
* * * * *

0
4. Revise Sec.  203.478(c) to read as follows:


Sec.  203.478  Payment of insurance benefits.

* * * * *
    (c) Method of payment. Payment of an insurance claim shall be made 
in cash, in debentures, or in a combination of both, as determined by 
the Commissioner either at, or prior to, the time of payment.
* * * * *

PART 207--MULTIFAMILY HOUSING MORTGAGE INSURANCE

0
5. The authority citation for part 207 is revised to read as follows:

    Authority:  12 U.S.C. 1701z-11(e), 1709(c)(1), 1713, 1715(b), 
and 1735d; 42 U.S.C. 3535(d).


0
6. Amend Sec.  207.259 by revising paragraph (a), to read as follows:


Sec.  207.259  Insurance Benefits.

    (a) Method of payment. (1) Upon either an assignment of the 
mortgage to the Commissioner or a conveyance of the property to the 
Commissioner in accordance with requirements in Sec.  207.258, payment 
of an insurance claim shall be made in cash, in debentures, or in a 
combination of both, as determined by the Commissioner either at, or 
prior to, the time of payment.
    (2) An insurance claim paid on a mortgage insured under section 
223(e) of the National Housing Act shall be paid in cash from the 
Special Risk Insurance Fund.
* * * * *

PART 220--MORTGAGE INSURANCE AND INSURED IMPROVEMENT LOANS FOR 
URBAN RENEWAL AND CONCENTRATED DEVELOPMENT

0
7. The authority citation for part 220 is revised to read as follows:

    Authority:  12 U.S.C. 1713, 1715b, 1715k, and 1735d; 42 U.S.C. 
3535(d).


0
8. Revise Sec.  220.751(a) to read as follows:


Sec.  220.751  Cross-reference.

    (a) All of the provisions of subpart B, part 207, of this chapter, 
covering mortgages insured under section 207 of the National Housing 
Act, apply with full force and effect to multifamily project mortgages 
insured under section 220 of the National Housing Act, except Sec.  
207.256b Modification of mortgage terms.
* * * * *


Sec.  220.760  [Removed]

0
9. Remove Sec.  220.760.


Sec.  220.822  [Amended]

0
10. In Sec.  220.822 remove and reserve paragraph (b).

PART 221--LOW COST AND MODERATE INCOME MORTGAGE INSURANCE--SAVINGS 
CLAUSE

0
11. The authority citation for part 221 is revised to read as follows:

    Authority:  12 U.S.C. 1715b, 1715l, and 1735d; 42 U.S.C. 
3535(d).


Sec.  221.762  [Amended]

0
12. In Sec.  221.762 remove and reserve paragraph (a).

PART 232--MORTGAGE INSURANCE FOR NURSING HOMES, INTERMEDIATE CARE 
FACILITIES, BOARD AND CARE HOMES, AND ASSISTED LIVING FACILITIES

0
13. The authority citation for part 232 is revised to read as follows:

    Authority:  12 U.S.C. 1715b, 1715w, 1735d, and 1735f-19; 42 
U.S.C. 3535(d).


0
14. Revise Sec.  232.885(a) to read as follows:


Sec.  232.885  Insurance benefits.

    (a) Method of payment. Payment of an insurance claim shall be made 
in cash, in debentures, or in a combination of both, as determined by 
the Commissioner either at, or prior to, the time of payment.
* * * * *

PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENT FOR 
RENTAL PROJECTS

0
15. The authority citation for part 236 is revised to read as follows:

    Authority: 12 U.S.C. 1715b, 1715z-1, and 1735d; 42 U.S.C. 
3535(d).


Sec.  236.265  [Amended]

0
16. In Sec.  236.265, remove and reserve paragraph (a).

PART 241--SUPPLEMENTARY FINANCING FOR INSURED PROJECT MORTGAGES

0
17. The authority citation for part 241 is revised to read as follows:


[[Page 51469]]


     Authority:  12 U.S.C. 1715b, 1715z-6, and 1735d; 42 U.S.C. 
3535(d).


0
18. Revise Sec.  241.261 to read as follows:


Sec.  241.261  Payment of insurance benefits.

    All of the provisions of Sec.  207.259 of this chapter relating to 
insurance benefits shall apply to multifamily loans insured under this 
subpart.

0
19. Revise Sec.  241.885(a) to read as follows:


Sec.  241.885  Insurance benefits.

    (a) Method of payment. Payment of insurance claims shall be made in 
cash, in debentures, or in a combination of both, as determined by the 
Commissioner either at, or prior to, the time of payment.
* * * * *

0
20. Revise Sec.  241.1205 to read as follows:


Sec.  241.1205  Payment of insurance benefits.

    All the provisions of Sec.  207.259 of this chapter relating to 
insurance benefits shall apply to an equity or acquisition loan insured 
under subpart F of this part.

    Dated: August 12, 2015.
Edward L. Golding,
Principal Deputy, Assistant Secretary for Housing.
    Approved: August 12, 2015.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-20827 Filed 8-24-15; 8:45 am]
 BILLING CODE 4210-67-P
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