Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 4127-4128 [2011-1358]

Download as PDF 4127 Federal Register / Vol. 76, No. 15 / Monday, January 24, 2011 / Notices insurance premiums and meet all other obligations associated with insured mortgages. A terminated mortgagee may apply for reinstatement of the Origination Approval Agreement if the approval for the affected branch or branches has been terminated for at least six months and the mortgagee continues to be an approved mortgagee meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 and 202.12. However, Mortgagee Letter 2010–20 and Final Rule 5356–F–02 at 24 CFR 202 eliminates FHA approval for loan correspondents after December 31, 2010. Therefore, HUD will not accept requests for reinstatement from loan correspondents after that date. The mortgagee’s application for reinstatement must be in a format prescribed by the Secretary and signed by the mortgagee. In addition, the application must be accompanied by an independent analysis of the terminated office’s operations as well as its mortgage production, specifically including the FHA-insured mortgages cited in its termination notice. This independent analysis shall identify the underlying cause for the mortgagee’s high default and claim rate. The analysis must be prepared by an independent Certified Public Accountant (CPA) qualified to perform audits under Government Auditing Standards as provided by the Government Accountability Office. The Mortgagee name Mortgagee branch office address HUD office jurisdictions Termination effective date Homeownership centers Access Mortgage Services Inc ......................... Anchor Mortgage .............................................. 97 Main St., Ste 209, Woodbridge, NJ 07095 6260 S Rainbow Blvd., Ste 100, Las Vegas, NV 89118. 10724 Baltimore Ave., Beltsville, MD 20705 .... 6230 Orchard Lake Rd., Ste 280, West Bloomfield, MI 48322. 225 Derry Rd., Hudson, NH 03051 .................. 5024 Campbell Blvd., Ste G, Baltimore, MD 21236. 150 Airport Rd., Ste 1100, Lakewood, NJ 08701. 1120 Campus Dr., Morganville, NJ 07751 ....... 1221 Lake Dr., SE., Ste 103, Bessemer, AL 35022. 10500 Kincaid Dr., Ste 300, Fishers, IN 46037 105 S Wheeler St., Ste 300, Plant City, FL 33563. 30 S Stolp Ave., Ste 314, Aurora, IL 60506 .... 4660 Wadsworth Blvd., Wheat Ridge, CO 80033. 24400 Northwestern Hwy., Southfield, MI 48075. 5875 S Rainbow Blvd., Ste 110, Las Vegas, NV 89118. 1911 Rohlwing Rd., Ste A, Rolling Meadows, IL 60008. Newark ......... Las Vegas .... 11/23/2010 ... 11/16/2010 ... Philadelphia Santa Ana Washington .. Detroit .......... 11/15/2010 ... 11/15/2010 ... Philadelphia Philadelphia Bangor ......... Washington .. 11/15/2010 ... 11/15/2010 ... Philadelphia Philadelphia Camden ....... 12/14/2010 ... Philadelphia Camden ....... Birmingham .. 12/14/2010 ... 11/15/2010 ... Philadelphia Atlanta Indianapolis .. Jacksonville .. 11/15/2010 ... 11/15/2010 ... Atlanta Atlanta Chicago ........ Denver ......... 11/15/2010 ... 11/16/2010 ... Atlanta Denver Detroit .......... 11/16/2010 ... Philadelphia Las Vegas .... 11/15/2010 ... Santa Ana Chicago ........ 11/16/2010 ... Atlanta Benefit Funding Corp ........................................ Birmingham Bancorp Mortgage Corp ............... Dedicated Mortgage Associates LLC ............... Equitable Trust Mortgage Corp ........................ Equity Source Home Loans LLC ...................... Equity Source Home Loans LLC ...................... First Performance Mortgage Corp .................... Freedom Mortgage Corp .................................. Homeland Lending Inc ...................................... Metro Finance Corp .......................................... Moncor Inc ........................................................ MVB Mortgage Corp ......................................... Signature One Mortgage Inc ............................ Valor Financial Services LLC ........................... Dated: January 12, 2011. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. ACTION: BILLING CODE 4210–67–P mstockstill on DSKH9S0YB1PROD with NOTICES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5493–N–01] Mortgage and Loan Insurance Programs Under the National Housing Act—Debenture Interest Rates Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. VerDate Mar<15>2010 15:51 Jan 21, 2011 Jkt 223001 This notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under section 221(g)(4) of the Act during the 6-month period beginning January 1, 2011, is 21⁄2 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, SUMMARY: [FR Doc. 2011–1360 Filed 1–21–11; 8:45 am] AGENCY: Notice. PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 mortgagee must also submit a written corrective action plan to address each of the issues identified in the CPA’s report, along with evidence that the plan has been implemented. The application for a new Agreement should be in the form of a letter, accompanied by the CPA’s report and corrective action plan. The request should be sent to the Director, Office of Lender Activities and Program Compliance, 451 Seventh Street, SW., Room B133–P3214, Washington, DC 20410–8000 or by courier to 490 L’Enfant Plaza, East, SW., Suite 3214, Washington, DC 20024–8000. Action: The following mortgagees have had their Origination Agreements terminated by HUD: whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning January 1, 2011, is 37⁄8 percent. However, as a result of an amendment to section 224 of the Act, if an insurance claim relating to a mortgage insured under sections 203 or 234 of the Act and endorsed for insurance after January 23, 2004, is paid in cash, the debenture interest rate for purposes of calculating a claim shall be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years. E:\FR\FM\24JAN1.SGM 24JAN1 4128 Federal Register / Vol. 76, No. 15 / Monday, January 24, 2011 / Notices FOR FURTHER INFORMATION CONTACT: Yong Sun, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC 20410–8000; telephone (202) 402–4778 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number through TTY by calling the toll-free Federal Information Relay Service at (800) 877–8339. Section 224 of the Act (12 U.S.C. 1715o) provides that debentures issued under the Act with respect to an insured loan or mortgage (except for debentures issued pursuant to section 221(g)(4) of the Act) will bear interest at the rate in effect on the date the commitment to insure the loan or mortgage was issued, or the date the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, whichever rate is higher. This provision is implemented in HUD’s regulations at 24 CFR 203.405, 203.479, 207.259(e)(6), and 220.830. These regulatory provisions state that the applicable rates of interest will be published twice each year as a notice in the Federal Register. Section 224 further provides that the interest rate on these debentures will be set from time to time by the Secretary of HUD, with the approval of the Secretary of the Treasury, in an amount not in excess of the annual interest rate determined by the Secretary of the Treasury pursuant to a statutory formula based on the average yield of all outstanding marketable Treasury obligations of maturities of 15 or more years. The Secretary of the Treasury (1) has determined, in accordance with the provisions of section 224, that the statutory maximum interest rate for the period beginning January 1, 2011, is 37⁄8 percent; and (2) has approved the establishment of the debenture interest rate by the Secretary of HUD at 37⁄8 percent for the 6-month period beginning January 1, 2011. This interest rate will be the rate borne by debentures issued with respect to any insured loan or mortgage (except for debentures issued pursuant to section 221(g)(4)) with insurance commitment or endorsement date (as applicable) within the first 6 months of 2011. For convenience of reference, HUD is publishing the following chart of debenture interest rates applicable to mortgages committed or endorsed since January 1, 1980: mstockstill on DSKH9S0YB1PROD with NOTICES SUPPLEMENTARY INFORMATION: VerDate Mar<15>2010 15:51 Jan 21, 2011 Jkt 223001 Effective interest rate On or after 91⁄2 ...... 97⁄8 ...... 113⁄4 .... 127⁄8 .... 123⁄4 .... 101⁄4 .... 103⁄8 .... 111⁄2 .... 133⁄8 .... 115⁄8 .... 111⁄8 .... 101⁄4 .... 81⁄4 ...... 8 .......... 9 .......... 91⁄8 ...... 93⁄8 ...... 91⁄4 ...... 9 .......... 81⁄8 ...... 9 .......... 83⁄4 ...... 81⁄2 ...... 8 .......... 8 .......... 73⁄4 ...... 7 .......... 65⁄8 ...... 73⁄4 ...... 83⁄8 ...... 71⁄4 ...... 61⁄2 ...... 71⁄4 ...... 63⁄4 ...... 71⁄8 ...... 63⁄8 ...... 61⁄8 ...... 51⁄2 ...... 61⁄8 ...... 61⁄2 ...... 61⁄2 ...... 6 .......... 57⁄8 ...... 51⁄4 ...... 53⁄4 ...... 5 .......... 41⁄2 ...... 51⁄8 ...... 51⁄2 ...... 47⁄8 ...... 41⁄2 ...... 47⁄8 ...... 53⁄8 ...... 43⁄4 ...... 5 .......... 41⁄2 ...... 45⁄8 ...... 41⁄8 ...... 41⁄8 ...... 41⁄4 ...... 41⁄8 ...... 37⁄8 ...... Jan. 1, 1980 ..... July 1, 1980 ...... Jan. 1, 1981 ..... July 1, 1981 ...... Jan. 1, 1982 ..... Jan. 1, 1983 ..... July 1, 1983 ...... Jan. 1, 1984 ..... July 1, 1984 ...... Jan. 1, 1985 ..... July 1, 1985 ...... Jan. 1, 1986 ..... July 1, 1986 ...... Jan. 1, 1987 ..... July 1, 1987 ...... Jan. 1, 1988 ..... July 1, 1988 ...... Jan. 1, 1989 ..... July 1, 1989 ...... Jan. 1, 1990 ..... July 1, 1990 ...... Jan. 1, 1991 ..... July 1, 1991 ...... Jan. 1, 1992 ..... July 1, 1992 ...... Jan. 1, 1993 ..... July 1, 1993 ...... Jan. 1, 1994 ..... July 1, 1994 ...... Jan. 1, 1995 ..... July 1, 1995 ...... Jan. 1, 1996 ..... July 1, 1996 ...... Jan. 1, 1997 ..... July 1, 1997 ...... Jan. 1, 1998 ..... July 1, 1998 ...... Jan. 1, 1999 ..... July 1, 1999 ...... Jan. 1, 2000 ..... July 1, 2000 ...... Jan. 1, 2001 ..... July 1, 2001 ...... Jan. 1, 2002 ..... July 1, 2002 ...... Jan. 1, 2003 ..... July 1, 2003 ...... Jan. 1, 2004 ..... July 1, 2004 ...... Jan. 1, 2005 ..... July 1, 2005 ...... Jan. 1, 2006 ..... July 1, 2006 ...... Jan. 1, 2007 ..... July 1, 2007 ...... Jan. 1, 2008 ..... July 1, 2008 ...... Jan. 1, 2009 ..... July 1, 2009 ...... Jan. 1, 2010 ..... July 1, 2010 ...... Jan. 1, 2011 ..... Prior to July 1, 1980. Jan. 1, 1981. July 1, 1981. Jan. 1, 1982. Jan. 1, 1983. July 1, 1983. Jan. 1, 1984. July 1, 1984. Jan. 1, 1985. July 1, 1985. Jan. 1, 1986. July 1, 1986. Jan. 1. 1987. July 1, 1987. Jan. 1, 1988. July 1, 1988. Jan. 1, 1989. July 1, 1989. Jan. 1, 1990. July 1, 1990. Jan. 1, 1991. July 1, 1991. Jan. 1, 1992. July 1, 1992. Jan. 1, 1993. July 1, 1993. Jan. 1, 1994. July 1, 1994. Jan. 1, 1995. July 1, 1995. Jan. 1, 1996. July 1, 1996. Jan. 1, 1997. July 1, 1997. Jan. 1, 1998. July 1, 1998. Jan. 1, 1999. July 1, 1999. Jan. 1, 2000. July 1, 2000. Jan. 1, 2001. July 1, 2001. Jan. 1, 2002. July 1, 2002. Jan. 1, 2003. July 1, 2003. Jan. 1, 2004. July 1, 2004. Jan. 1, 2005. July 1, 2005. Jan. 1, 2006. July 1, 2006. Jan. 1, 2007. July 1, 2007. Jan. 1, 2008. July 1, 2008. Jan. 1, 2009. July 1, 2009 Jan. 1, 2010. July 1, 2010. Jan. 1, 2011. July 1, 2011. Therefore, for all claims paid in cash on mortgages insured under section 203 or 234 of the National Housing Act and endorsed for insurance after January 23, 2004, the debenture interest rate will be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years, as found in Federal Reserve Statistical Release H– 15. The Federal Housing Administration has codified this provision in HUD regulations at 24 CFR 203.405(b) and 24 CFR 203.479(b). Section 221(g)(4) of the Act provides that debentures issued pursuant to that paragraph (with respect to the assignment of an insured mortgage to the Secretary) will bear interest at the ‘‘going Federal rate’’ in effect at the time the debentures are issued. The term ‘‘going Federal rate’’ is defined to mean the interest rate that the Secretary of the Treasury determines, pursuant to a statutory formula based on the average yield on all outstanding marketable Treasury obligations of 8- to 12-year maturities, for the 6-month periods of January through June and July through December of each year. Section 221(g)(4) is implemented in the HUD regulations at 24 CFR 221.255 and 24 CFR 221.790. The Secretary of the Treasury has determined that the interest rate to be borne by debentures issued pursuant to section 221(g)(4) during the 6-month period beginning January 1, 2011, is 21⁄2 percent. The subject matter of this notice falls within the categorical exemption from HUD’s environmental clearance procedures set forth in 24 CFR 50.19(c)(6). For that reason, no environmental finding has been prepared for this notice. (Authority: Sections 211, 221, 224, National Housing Act, 12 U.S.C. 1715b, 1715l, 1715o; Section 7(d), Department of HUD Act, 42 U.S.C. 3535(d).) Dated: January 12, 2011. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. 2011–1358 Filed 1–21–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Office of the Secretary Section 215 of Division G, Title II of Public Law 108–199, enacted January 23, 2004 (HUD’s 2004 Appropriations Act) amended section 224 of the Act, to change the debenture interest rate for purposes of calculating certain insurance claim payments made in cash. PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 Establishment of the Ocean Energy Safety Advisory Committee Department of the Interior. Establishment of the Ocean Energy Safety Advisory Committee. AGENCY: ACTION: E:\FR\FM\24JAN1.SGM 24JAN1

Agencies

[Federal Register Volume 76, Number 15 (Monday, January 24, 2011)]
[Notices]
[Pages 4127-4128]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1358]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5493-N-01]


Mortgage and Loan Insurance Programs Under the National Housing 
Act--Debenture Interest Rates

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

ACTION: Notice.

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

SUMMARY: This notice announces changes in the interest rates to be paid 
on debentures issued with respect to a loan or mortgage insured by the 
Federal Housing Administration under the provisions of the National 
Housing Act (the Act). The interest rate for debentures issued under 
section 221(g)(4) of the Act during the 6-month period beginning 
January 1, 2011, is 2\1/2\ percent. The interest rate for debentures 
issued under any other provision of the Act is the rate in effect on 
the date that the commitment to insure the loan or mortgage was issued, 
or the date that the loan or mortgage was endorsed (or initially 
endorsed if there are two or more endorsements) for insurance, 
whichever rate is higher. The interest rate for debentures issued under 
these other provisions with respect to a loan or mortgage committed or 
endorsed during the 6-month period beginning January 1, 2011, is 3\7/8\ 
percent. However, as a result of an amendment to section 224 of the 
Act, if an insurance claim relating to a mortgage insured under 
sections 203 or 234 of the Act and endorsed for insurance after January 
23, 2004, is paid in cash, the debenture interest rate for purposes of 
calculating a claim shall be the monthly average yield, for the month 
in which the default on the mortgage occurred, on United States 
Treasury Securities adjusted to a constant maturity of 10 years.

[[Page 4128]]


FOR FURTHER INFORMATION CONTACT: Yong Sun, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC 
20410-8000; telephone (202) 402-4778 (this is not a toll-free number). 
Individuals with speech or hearing impairments may access this number 
through TTY by calling the toll-free Federal Information Relay Service 
at (800) 877-8339.

SUPPLEMENTARY INFORMATION: Section 224 of the Act (12 U.S.C. 1715o) 
provides that debentures issued under the Act with respect to an 
insured loan or mortgage (except for debentures issued pursuant to 
section 221(g)(4) of the Act) will bear interest at the rate in effect 
on the date the commitment to insure the loan or mortgage was issued, 
or the date the loan or mortgage was endorsed (or initially endorsed if 
there are two or more endorsements) for insurance, whichever rate is 
higher. This provision is implemented in HUD's regulations at 24 CFR 
203.405, 203.479, 207.259(e)(6), and 220.830. These regulatory 
provisions state that the applicable rates of interest will be 
published twice each year as a notice in the Federal Register.
    Section 224 further provides that the interest rate on these 
debentures will be set from time to time by the Secretary of HUD, with 
the approval of the Secretary of the Treasury, in an amount not in 
excess of the annual interest rate determined by the Secretary of the 
Treasury pursuant to a statutory formula based on the average yield of 
all outstanding marketable Treasury obligations of maturities of 15 or 
more years.
    The Secretary of the Treasury (1) has determined, in accordance 
with the provisions of section 224, that the statutory maximum interest 
rate for the period beginning January 1, 2011, is 3\7/8\ percent; and 
(2) has approved the establishment of the debenture interest rate by 
the Secretary of HUD at 3\7/8\ percent for the 6-month period beginning 
January 1, 2011. This interest rate will be the rate borne by 
debentures issued with respect to any insured loan or mortgage (except 
for debentures issued pursuant to section 221(g)(4)) with insurance 
commitment or endorsement date (as applicable) within the first 6 
months of 2011.
    For convenience of reference, HUD is publishing the following chart 
of debenture interest rates applicable to mortgages committed or 
endorsed since January 1, 1980:

------------------------------------------------------------------------
  Effective  interest  rate        On or after            Prior to
------------------------------------------------------------------------
9\1/2\......................  Jan. 1, 1980........  July 1, 1980.
9\7/8\......................   July 1, 1980.......  Jan. 1, 1981.
11\3/4\.....................   Jan. 1, 1981.......  July 1, 1981.
12\7/8\.....................   July 1, 1981.......  Jan. 1, 1982.
12\3/4\.....................   Jan. 1, 1982.......  Jan. 1, 1983.
10\1/4\.....................   Jan. 1, 1983.......  July 1, 1983.
10\3/8\.....................   July 1, 1983.......  Jan. 1, 1984.
11\1/2\.....................   Jan. 1, 1984.......  July 1, 1984.
13\3/8\.....................   July 1, 1984.......  Jan. 1, 1985.
11\5/8\.....................   Jan. 1, 1985.......  July 1, 1985.
11\1/8\.....................   July 1, 1985.......  Jan. 1, 1986.
10\1/4\.....................   Jan. 1, 1986.......  July 1, 1986.
8\1/4\......................   July 1, 1986.......  Jan. 1. 1987.
8...........................   Jan. 1, 1987.......  July 1, 1987.
9...........................   July 1, 1987.......  Jan. 1, 1988.
9\1/8\......................   Jan. 1, 1988.......  July 1, 1988.
9\3/8\......................   July 1, 1988.......  Jan. 1, 1989.
9\1/4\......................   Jan. 1, 1989.......  July 1, 1989.
9...........................   July 1, 1989.......  Jan. 1, 1990.
8\1/8\......................   Jan. 1, 1990.......  July 1, 1990.
9...........................   July 1, 1990.......  Jan. 1, 1991.
8\3/4\......................   Jan. 1, 1991.......  July 1, 1991.
8\1/2\......................   July 1, 1991.......  Jan. 1, 1992.
8...........................   Jan. 1, 1992.......  July 1, 1992.
8...........................   July 1, 1992.......  Jan. 1, 1993.
7\3/4\......................   Jan. 1, 1993.......  July 1, 1993.
7...........................   July 1, 1993.......  Jan. 1, 1994.
6\5/8\......................   Jan. 1, 1994.......  July 1, 1994.
7\3/4\......................   July 1, 1994.......  Jan. 1, 1995.
8\3/8\......................   Jan. 1, 1995.......  July 1, 1995.
7\1/4\......................   July 1, 1995.......  Jan. 1, 1996.
6\1/2\......................   Jan. 1, 1996.......  July 1, 1996.
7\1/4\......................   July 1, 1996.......  Jan. 1, 1997.
6\3/4\......................   Jan. 1, 1997.......  July 1, 1997.
7\1/8\......................   July 1, 1997.......  Jan. 1, 1998.
6\3/8\......................   Jan. 1, 1998.......  July 1, 1998.
6\1/8\......................   July 1, 1998.......  Jan. 1, 1999.
5\1/2\......................   Jan. 1, 1999.......  July 1, 1999.
6\1/8\......................   July 1, 1999.......  Jan. 1, 2000.
6\1/2\......................   Jan. 1, 2000.......  July 1, 2000.
6\1/2\......................   July 1, 2000.......  Jan. 1, 2001.
6...........................   Jan. 1, 2001.......  July 1, 2001.
5\7/8\......................   July 1, 2001.......  Jan. 1, 2002.
5\1/4\......................   Jan. 1, 2002.......  July 1, 2002.
5\3/4\......................   July 1, 2002.......  Jan. 1, 2003.
5...........................   Jan. 1, 2003.......  July 1, 2003.
4\1/2\......................   July 1, 2003.......  Jan. 1, 2004.
5\1/8\......................   Jan. 1, 2004.......  July 1, 2004.
5\1/2\......................   July 1, 2004.......  Jan. 1, 2005.
4\7/8\......................  Jan. 1, 2005........  July 1, 2005.
4\1/2\......................  July 1, 2005........  Jan. 1, 2006.
4\7/8\......................   Jan. 1, 2006.......  July 1, 2006.
5\3/8\......................   July 1, 2006.......  Jan. 1, 2007.
4\3/4\......................  Jan. 1, 2007........  July 1, 2007.
5...........................   July 1, 2007.......  Jan. 1, 2008.
4\1/2\......................   Jan. 1, 2008.......  July 1, 2008.
4\5/8\......................   July 1, 2008.......  Jan. 1, 2009.
4\1/8\......................   Jan. 1, 2009.......  July 1, 2009
4\1/8\......................   July 1, 2009.......  Jan. 1, 2010.
4\1/4\......................   Jan. 1, 2010.......  July 1, 2010.
4\1/8\......................   July 1, 2010.......  Jan. 1, 2011.
3\7/8\......................   Jan. 1, 2011.......  July 1, 2011.
------------------------------------------------------------------------

    Section 215 of Division G, Title II of Public Law 108-199, enacted 
January 23, 2004 (HUD's 2004 Appropriations Act) amended section 224 of 
the Act, to change the debenture interest rate for purposes of 
calculating certain insurance claim payments made in cash. Therefore, 
for all claims paid in cash on mortgages insured under section 203 or 
234 of the National Housing Act and endorsed for insurance after 
January 23, 2004, the debenture interest rate will be the monthly 
average yield, for the month in which the default on the mortgage 
occurred, on United States Treasury Securities adjusted to a constant 
maturity of 10 years, as found in Federal Reserve Statistical Release 
H-15. The Federal Housing Administration has codified this provision in 
HUD regulations at 24 CFR 203.405(b) and 24 CFR 203.479(b).
    Section 221(g)(4) of the Act provides that debentures issued 
pursuant to that paragraph (with respect to the assignment of an 
insured mortgage to the Secretary) will bear interest at the ``going 
Federal rate'' in effect at the time the debentures are issued. The 
term ``going Federal rate'' is defined to mean the interest rate that 
the Secretary of the Treasury determines, pursuant to a statutory 
formula based on the average yield on all outstanding marketable 
Treasury obligations of 8- to 12-year maturities, for the 6-month 
periods of January through June and July through December of each year. 
Section 221(g)(4) is implemented in the HUD regulations at 24 CFR 
221.255 and 24 CFR 221.790.
    The Secretary of the Treasury has determined that the interest rate 
to be borne by debentures issued pursuant to section 221(g)(4) during 
the 6-month period beginning January 1, 2011, is 2\1/2\ percent.
    The subject matter of this notice falls within the categorical 
exemption from HUD's environmental clearance procedures set forth in 24 
CFR 50.19(c)(6). For that reason, no environmental finding has been 
prepared for this notice.

(Authority: Sections 211, 221, 224, National Housing Act, 12 U.S.C. 
1715b, 1715l, 1715o; Section 7(d), Department of HUD Act, 42 U.S.C. 
3535(d).)

    Dated: January 12, 2011.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-1358 Filed 1-21-11; 8:45 am]
BILLING CODE 4210-67-P