Federal Housing Administration (FHA): Suspension of Section 238(c) Single-Family Mortgage Insurance in Military Impacted Areas, 53851-53853 [2011-22189]

Download as PDF Federal Register / Vol. 76, No. 168 / Tuesday, August 30, 2011 / Proposed Rules internationally? What impacts, either positive or negative, would result from an alignment of NRC regulatory requirements and guidance with international standards? 8. Should licensees be required to monitor and report LDE for foreign workers and report the values upon request? Are there other impacts (e.g., operational, administrative, costs, etc.) that should be anticipated if the U.S. regulatory structure were to be different from that being used in other countries? 9. Are there any other NRC regulations and regulatory guidance that might need to be reviewed and revised as a result of ICRP recommendations in reducing the allowable dose to the lens of the eye? 10. How are licensees monitoring to demonstrate compliance with the existing dose limits for the lens of the eye? Dated at Rockville, Maryland, this 19th day of August 2011. For the Nuclear Regulatory Commission. Josephine M. Piccone, Director, Division of Intergovernmental Liaison and Rulemaking, Office of Federal and State Materials and Environmental Management Programs. [FR Doc. 2011–21900 Filed 8–29–11; 8:45 am] Radiological Health, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. 4622, Silver Spring, MD 20993–0002, 301–796–6216. SUPPLEMENTARY INFORMATION: In FR Doc. 2011–19959, appearing on page 48058, in the Federal Register of Monday, August 8, 2011, the following correction is made: 1. On page 48062, in the first column, under ‘‘XIII. References,’’ the first reference is corrected to read ‘‘1. Geiger, D.R., ‘‘FY 2003 and 2004 Unit Costs for the Process of Medical Device Review,’’ September 2005, https://www.fda.gov/ downloads/MedicalDevices/Device RegulationandGuidance/Overview/ MedicalDeviceUserFeeand ModernizationActMDUFMA/ucm 109216.’’ Dated: August 24, 2011. Nancy K. Stade, Deputy Director for Policy, Center for Devices and Radiological Health. [FR Doc. 2011–22107 Filed 8–29–11; 8:45 am] BILLING CODE 4160–01–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Part 203 BILLING CODE 7590–01–P [Docket No. FR–5461–P–01] RIN 2502–AJ01 DEPARTMENT OF HEALTH AND HUMAN SERVICES Federal Housing Administration (FHA): Suspension of Section 238(c) SingleFamily Mortgage Insurance in Military Impacted Areas Food and Drug Administration 21 CFR Part 870 Effective Date of Requirement for Premarket Approval for Cardiovascular Permanent Pacemaker Electrode; Correction AGENCY: Food and Drug Administration, HHS. ACTION: Proposed rule; correction. The Food and Drug Administration (FDA) is correcting a proposed rule that appeared in the Federal Register of August 8, 2011 (76 FR 48058). The document proposed to require the filing of a premarket approval application or a notice of completion of a product development protocol for the class III preamendments device: Cardiovascular permanent pacemaker electrode. The document was published with an incorrect Internet address for the first reference in the References section. This document corrects that error. FOR FURTHER INFORMATION CONTACT: Elias Mallis, Center for Devices and srobinson on DSK4SPTVN1PROD with PROPOSALS SUMMARY: VerDate Mar<15>2010 18:48 Aug 29, 2011 Jkt 223001 Office of the Assistant Secretary of Housing—Federal Housing Commissioner, HUD. ACTION: Proposed rule. AGENCY: [Docket No. FDA–2011–N–0505] This proposed rule would suspend FHA’s mortgage insurance program for military impacted areas under section 238(c) of the National Housing Act (Act). This single-family mortgage insurance program, established by regulation in 1977, has been significantly underutilized for the past several years. Additionally, these mortgage loans are insured under comparable terms and conditions as loans insured under HUD’s primary single-family mortgage insurance program under section 203(b) of the National Housing Act. Accordingly, those borrowers who would be served under section 238(c) of the Act are served equally well under the section 203(b) mortgage insurance program. The suspension of this mortgage insurance program is consistent with the President’s budget request for Fiscal Year 2012. SUMMARY: PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 DATES: 53851 Comment Due Date: October 31, 2011. Interested persons are invited to submit comments regarding this proposed rule to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street, SW., Room 10276, Washington, DC 20410– 0500. Communications must refer to the above docket number and title. There are two methods for submitting public comments. 1. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street, SW., Room 10276, Washington, DC 20410–0001. 2. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at https://www.regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the https://www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically. ADDRESSES: Note: To receive consideration as public comments, comments must be submitted through one of the two methods specified above. Again, all submissions must refer to the docket number and title of the rule. No Facsimile Comments. Facsimile (FAX) comments are not acceptable. Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202–708– 3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number via TTY by calling the toll-free Federal Relay Service at 800–877–8339. Copies of all comments submitted are available for inspection and downloading at https://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Karin Hill, Director, Office of Single E:\FR\FM\30AUP1.SGM 30AUP1 53852 Federal Register / Vol. 76, No. 168 / Tuesday, August 30, 2011 / Proposed Rules Family Program Development, Office of Housing, Department of Housing and Urban Development, 451 7th Street, SW., Room 9278, Washington, DC 20410–8000; telephone number 202– 708–2121 (this is not a toll-free number). Persons with hearing or speech impairments may access this number via TTY by calling the Federal Relay Service at 1–800–877–8339. SUPPLEMENTARY INFORMATION: srobinson on DSK4SPTVN1PROD with PROPOSALS I. Background Section 238(c) of the National Housing Act (12 U.S.C. 1715z–3(c)) (Act) was added by the Housing and Community Development Act of 1977 (Pub. L. 95–128) to authorize HUD to insure mortgages executed in connection with the construction, repair, rehabilitation, or purchase of property located near any installation of the Armed Forces of the United States in federally impacted areas in which conditions are such that one or more of the applicable insuring requirements under another single-family mortgage insurance program cannot be met. In addition, insurance may only be provided under section 238(c) if: (1) HUD finds that the benefits to be derived from providing the insurance outweigh the risk of probable costs to the government; and (2) the Secretary of the Department of Defense certifies that there is no present intention to curtail substantially the personnel assigned or to be assigned to the installation. HUD is authorized to establish premiums and other charges to assure that the mortgage insurance program authorized under section 238(c) of the Act is actuarially sound, and to prescribe terms and conditions relating to the insurance found to be necessary and appropriate to the implementation of section 238(c). HUD’s regulation implementing section 238(c) is codified at 24 CFR 203.43e. The regulation, promulgated in 1977, closely tracks the language of section 238(c) of the Act, and the section 238(c) mortgage insurance program is not subject to any regulatory requirements different from HUD’s principal singlefamily mortgage insurance program authorized under section 203(b) of the Act.1 Although established to ensure the availability of affordable housing in 1 From 1977 to 1983, mortgages insured under section 238(c) were subject to a higher mortgage insurance premium than other FHA single-family mortgage insurance programs (0.5 percent vs. 1.0 percent). In 1983, HUD reduced the mortgage insurance premium for section 238(c) mortgages to conform to other FHA programs because HUD determined that ‘‘the actuarial experience under Section 238(c) provides no basis for charging a higher mortgage insurance premium in federally impacted areas’’ (see 48 FR 35088–01). VerDate Mar<15>2010 18:48 Aug 29, 2011 Jkt 223001 military impacted areas, the program has been minimally utilized by eligible borrowers. Section 238(c) mortgage insurance has been available in only six counties throughout the country, three in Georgia and three in New York. From January 1, 2005, to June 30, 2010, FHA insured 4,542 single-family home loans in these six counties, and only 2,309 were endorsed under section 238(c) of the Act. The 2,309 loans endorsed since 2005 represent only .05 percent of all FHA-insured loans endorsed during that span. The President’s budget request for Fiscal Year (FY) 2011 acknowledged the underutilization of the section 238(c) program and advised that HUD would take action to halt the availability of the program in light of the significant underutilization. The FY 2011 budget request found at https:// www.gpoaccess.gov/usbudget/fy11/ index.html states the following: The Budget assumes that HUD will administratively suspend the Section 238(c) program in 2011. The Section 238(c) program provides single family mortgage insurance similar to MMI for a small number of families in areas affected by military installations. The elimination of Section 238(c) will not negatively impact the availability of FHA insured financing in the six counties currently covered under this program. (See HUD Appendix to the Budget at page 620 at https://www.gpoaccess.gov/usbudget/fy11/ appendix.html).2 II. This Proposed Rule Consistent with the President’s budget request, HUD proposes to suspend the section 238(c) program and remove § 203.43e from its codified regulations. HUD’s proposed removal of the regulations at § 203.43e is not inconsistent with suspension of the section 238(c) mortgage insurance program. As noted in Section I of this preamble, the regulatory language tracks the statutory language. As also noted earlier in this preamble, section 238(c) mortgage insurance operates in a comparable manner as HUD’s primary single-family mortgage insurance. If HUD subsequently determines that there is a demand for this program and that military families would be better served by this program, HUD can reactivate the program on the basis of the statutory language and does not need a regulation to make insurance available under this program. If such a situation occurs, HUD would notify the public through Federal Register notice that the program has been activated, so that eligible 2 The President’s Budget for FY 2012, found at https://www.whitehouse.gov/omb/budget/Overview, contains identical language to the paragraph cited above in the HUD Appendix to the FY 2012 Budget at page 591. PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 borrowers would be able to inquire about the availability of insurance under this program from their lenders. HUD notes that the removal of the regulations at § 203.43e would have no impact on loans already endorsed for FHA insurance under the section 238(c) program. The proposed suspension of this underutilized mortgage insurance program, and the proposed removal of the regulations at 24 CFR 203.43e, is not only consistent with the President’s budget requests for FY 2011 and 2012, but with the President’s Executive Order (EO) 13563, entitled ‘‘Improving Regulation and Regulatory Review,’’ signed by the President on January 18, 2011, and published on January 21, 2011, at 76 FR 3821. This EO requires 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.’’ For the reasons discussed in the Background section of this preamble, HUD has determined that the underutilization of the section 238(c) mortgage insurance program renders the program and its regulations outmoded and HUD, therefore, proposes to suspend the program and remove the regulations. III. Findings and Certification 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. The proposed rule would not modify or add any new regulatory burdens on FHA-approved mortgage lenders. Rather, the proposed rule would remove § 203.43e from HUD’s regulations, in conformity to HUD’s (and the Administration’s) decision to no longer exercise its authority to insure mortgages under section 238(c) of the Act. As more fully discussed above in the preamble to this rule, the mortgage insurance authority provided by section 238(c) of the Act has been minimally sought by eligible borrowers and consequently minimally utilized by lenders and other small entities participating in the FHA programs. Further, as noted above, section 238(c) mortgage insurance operated in a manner comparable to FHA’s mortgage insurance program under section 203(b) E:\FR\FM\30AUP1.SGM 30AUP1 Federal Register / Vol. 76, No. 168 / Tuesday, August 30, 2011 / Proposed Rules of the Act, HUD’s primary single-family mortgage insurance program. Accordingly, for the above reasons, the undersigned certifies that this rule will not have a significant economic impact on a substantial number of small entities. Notwithstanding HUD’s determination that this rule will not have a significant effect on a substantial number of small entities, HUD specifically invites comments regarding any less burdensome alternatives to this rule that will meet HUD’s objectives as described in the preamble to this rule. Executive Order 13132, Federalism Executive Order 13132 (entitled ‘‘Federalism’’) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial direct compliance costs on state and local governments and is not required by statute, or the rule preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rule will not have federalism implications and would not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive Order. srobinson on DSK4SPTVN1PROD with PROPOSALS 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 proposed rule does not impose any federal mandates on any state, local, or tribal governments, or on the private sector, within the meaning of UMRA. Environmental Impact This proposed rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). Catalogue of Federal Domestic Assistance The Catalogue of Federal Domestic Assistance Number for the principal FHA single-family mortgage insurance program is 14.117. VerDate Mar<15>2010 18:48 Aug 29, 2011 Jkt 223001 List of Subjects in 24 CFR Part 203 53853 Authority: 12 U.S.C. 1709, 1710, 1715b, 1715z–16, and 1715u; 42 U.S.C. 3535(d). standard requirements, and to approve a state rule establishing a maintenance plan contingency measure. In prior, separate rulemaking actions, EPA finalized its action to terminate the 1hour ozone anti-backsliding section 185 penalty fee requirement. EPA has proposed to approve the Control Technique Guideline Rules (CTG Rules Update) that are necessary for redesignation. We are proposing that if the CTG Rules Update is finalized, the area will have a fully approved SIP that meets all of its applicable 1997 8-hour requirements and 1-hour antibacksliding requirements under section 110 and Part D of the Federal Clean Air Act (CAA or Act) for purposes of redesignation. § 203.43e DATES: Hawaiian Natives, Home improvement, Indians—lands, Loan programs—housing and community development, Mortgage insurance, Reporting and recordkeeping requirements, Solar energy. Accordingly, for the reasons discussed in the preamble, HUD proposes to amend 24 CFR part 203 to read as follows: PART 203—SINGLE FAMILY MORTGAGE INSURANCE 1. The authority citation for part 203 continues to read as follows: [Removed] 2. Remove § 203.43e. Dated: August 24, 2011. Carol J. Galante, Acting Assistant Secretary for Housing— Federal Housing Commissioner. [FR Doc. 2011–22189 Filed 8–29–11; 8:45 am] BILLING CODE 4210–67–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 52 and 81 [EPA–R06–OAR–2010–0776; FRL–9456–7] Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; Louisiana; Baton Rouge Ozone Nonattainment Area: Redesignation to Attainment for the 1997 8-Hour Ozone Standard Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: EPA is proposing to approve a request from the State of Louisiana to redesignate the Baton Rouge, Louisiana moderate 1997 8-hour ozone nonattainment area to attainment of the 1997 8-hour ozone standard. In proposing to approve this request, EPA also proposes to approve as a revision to the Louisiana State Implementation Plan (SIP), a 1997 8-hour ozone maintenance plan with a 2022 Motor Vehicle Emissions Budget (MVEB) for the Baton Rouge Nonattainment Area (BRNA or BR). EPA is also proposing to approve revisions to the Louisiana SIP that meets the Reasonably Available Control Technology (RACT) requirements (for nitrogen oxides (NOX) and volatile organic compounds (VOCs)) for the 1-hour and 1997 8-hour ozone SUMMARY: PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 Comments must be received on or before September 29, 2011. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R06– OAR–2010–0776, by one of the following methods: • Federal Rulemaking Portal: https:// www.regulations.gov. Follow the on-line instructions for submitting comments. • U.S. EPA Region 6 ‘‘Contact Us’’ Web site: https://epa.gov/region6/ r6coment.htm. Please click on ‘‘6PD’’ (Multimedia) and select ‘‘Air’’ before submitting comments. • E-mail: Mr. Guy Donaldson at donaldson.guy@epa.gov. Please also send a copy by e-mail to the person listed in the FOR FURTHER INFORMATION CONTACT section below. • Fax: Mr. Guy Donaldson, Chief, Air Planning Section (6PD–L), at fax number 214–665–7263. • Mail: Mr. Guy Donaldson, Chief, Air Planning Section (6PD–L), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200, Dallas, Texas 75202–2733. • Hand or Courier Delivery: Mr. Guy Donaldson, Chief, Air Planning Section (6PD–L), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200, Dallas, Texas 75202–2733. Such deliveries are accepted only between the hours of 8 a.m. and 4 p.m. weekdays except for legal holidays. Special arrangements should be made for deliveries of boxed information. Instructions: Direct your comments to Docket ID No. EPA–R06–OAR–2010– 0776. EPA’s policy is that all comments received will be included in the public docket without change and may be made available online at https:// www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. E:\FR\FM\30AUP1.SGM 30AUP1

Agencies

[Federal Register Volume 76, Number 168 (Tuesday, August 30, 2011)]
[Proposed Rules]
[Pages 53851-53853]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22189]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 203

[Docket No. FR-5461-P-01]
RIN 2502-AJ01


Federal Housing Administration (FHA): Suspension of Section 
238(c) Single-Family Mortgage Insurance in Military Impacted Areas

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

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would suspend FHA's mortgage insurance 
program for military impacted areas under section 238(c) of the 
National Housing Act (Act). This single-family mortgage insurance 
program, established by regulation in 1977, has been significantly 
underutilized for the past several years. Additionally, these mortgage 
loans are insured under comparable terms and conditions as loans 
insured under HUD's primary single-family mortgage insurance program 
under section 203(b) of the National Housing Act. Accordingly, those 
borrowers who would be served under section 238(c) of the Act are 
served equally well under the section 203(b) mortgage insurance 
program. The suspension of this mortgage insurance program is 
consistent with the President's budget request for Fiscal Year 2012.

DATES: Comment Due Date: October 31, 2011.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street, 
SW., Room 10276, Washington, DC 20410-0500. Communications must refer 
to the above docket number and title. There are two methods for 
submitting public comments.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street, SW., Room 10276, 
Washington, DC 20410-0001.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
https://www.regulations.gov. HUD strongly encourages commenters to 
submit comments electronically. Electronic submission of comments 
allows the commenter maximum time to prepare and submit a comment, 
ensures timely receipt by HUD, and enables HUD to make them immediately 
available to the public. Comments submitted electronically through the 
https://www.regulations.gov Web site can be viewed by other commenters 
and interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note:  To receive consideration as public comments, comments 
must be submitted through one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the rule. No Facsimile Comments. Facsimile (FAX) comments are not 
acceptable.

    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at 202-708-3055 (this is 
not a toll-free number). Individuals with speech or hearing impairments 
may access this number via TTY by calling the toll-free Federal Relay 
Service at 800-877-8339. Copies of all comments submitted are available 
for inspection and downloading at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Karin Hill, Director, Office of Single

[[Page 53852]]

Family Program Development, Office of Housing, Department of Housing 
and Urban Development, 451 7th Street, SW., Room 9278, Washington, DC 
20410-8000; telephone number 202-708-2121 (this is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number via TTY by calling the Federal Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 238(c) of the National Housing Act (12 U.S.C. 1715z-3(c)) 
(Act) was added by the Housing and Community Development Act of 1977 
(Pub. L. 95-128) to authorize HUD to insure mortgages executed in 
connection with the construction, repair, rehabilitation, or purchase 
of property located near any installation of the Armed Forces of the 
United States in federally impacted areas in which conditions are such 
that one or more of the applicable insuring requirements under another 
single-family mortgage insurance program cannot be met. In addition, 
insurance may only be provided under section 238(c) if: (1) HUD finds 
that the benefits to be derived from providing the insurance outweigh 
the risk of probable costs to the government; and (2) the Secretary of 
the Department of Defense certifies that there is no present intention 
to curtail substantially the personnel assigned or to be assigned to 
the installation. HUD is authorized to establish premiums and other 
charges to assure that the mortgage insurance program authorized under 
section 238(c) of the Act is actuarially sound, and to prescribe terms 
and conditions relating to the insurance found to be necessary and 
appropriate to the implementation of section 238(c). HUD's regulation 
implementing section 238(c) is codified at 24 CFR 203.43e. The 
regulation, promulgated in 1977, closely tracks the language of section 
238(c) of the Act, and the section 238(c) mortgage insurance program is 
not subject to any regulatory requirements different from HUD's 
principal single-family mortgage insurance program authorized under 
section 203(b) of the Act.\1\
---------------------------------------------------------------------------

    \1\ From 1977 to 1983, mortgages insured under section 238(c) 
were subject to a higher mortgage insurance premium than other FHA 
single-family mortgage insurance programs (0.5 percent vs. 1.0 
percent). In 1983, HUD reduced the mortgage insurance premium for 
section 238(c) mortgages to conform to other FHA programs because 
HUD determined that ``the actuarial experience under Section 238(c) 
provides no basis for charging a higher mortgage insurance premium 
in federally impacted areas'' (see 48 FR 35088-01).
---------------------------------------------------------------------------

    Although established to ensure the availability of affordable 
housing in military impacted areas, the program has been minimally 
utilized by eligible borrowers. Section 238(c) mortgage insurance has 
been available in only six counties throughout the country, three in 
Georgia and three in New York. From January 1, 2005, to June 30, 2010, 
FHA insured 4,542 single-family home loans in these six counties, and 
only 2,309 were endorsed under section 238(c) of the Act. The 2,309 
loans endorsed since 2005 represent only .05 percent of all FHA-insured 
loans endorsed during that span.
    The President's budget request for Fiscal Year (FY) 2011 
acknowledged the underutilization of the section 238(c) program and 
advised that HUD would take action to halt the availability of the 
program in light of the significant underutilization. The FY 2011 
budget request found at https://www.gpoaccess.gov/usbudget/fy11/ states the following:

    The Budget assumes that HUD will administratively suspend the 
Section 238(c) program in 2011. The Section 238(c) program provides 
single family mortgage insurance similar to MMI for a small number 
of families in areas affected by military installations. The 
elimination of Section 238(c) will not negatively impact the 
availability of FHA insured financing in the six counties currently 
covered under this program. (See HUD Appendix to the Budget at page 
620 at https://www.gpoaccess.gov/usbudget/fy11/appendix.html).\2\
---------------------------------------------------------------------------

    \2\ The President's Budget for FY 2012, found at https://www.whitehouse.gov/omb/budget/Overview, contains identical language 
to the paragraph cited above in the HUD Appendix to the FY 2012 
Budget at page 591.
---------------------------------------------------------------------------

II. This Proposed Rule

    Consistent with the President's budget request, HUD proposes to 
suspend the section 238(c) program and remove Sec.  203.43e from its 
codified regulations. HUD's proposed removal of the regulations at 
Sec.  203.43e is not inconsistent with suspension of the section 238(c) 
mortgage insurance program. As noted in Section I of this preamble, the 
regulatory language tracks the statutory language. As also noted 
earlier in this preamble, section 238(c) mortgage insurance operates in 
a comparable manner as HUD's primary single-family mortgage insurance. 
If HUD subsequently determines that there is a demand for this program 
and that military families would be better served by this program, HUD 
can reactivate the program on the basis of the statutory language and 
does not need a regulation to make insurance available under this 
program. If such a situation occurs, HUD would notify the public 
through Federal Register notice that the program has been activated, so 
that eligible borrowers would be able to inquire about the availability 
of insurance under this program from their lenders. HUD notes that the 
removal of the regulations at Sec.  203.43e would have no impact on 
loans already endorsed for FHA insurance under the section 238(c) 
program.
    The proposed suspension of this underutilized mortgage insurance 
program, and the proposed removal of the regulations at 24 CFR 203.43e, 
is not only consistent with the President's budget requests for FY 2011 
and 2012, but with the President's Executive Order (EO) 13563, entitled 
``Improving Regulation and Regulatory Review,'' signed by the President 
on January 18, 2011, and published on January 21, 2011, at 76 FR 3821. 
This EO requires 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.'' For the reasons discussed in the Background section 
of this preamble, HUD has determined that the underutilization of the 
section 238(c) mortgage insurance program renders the program and its 
regulations outmoded and HUD, therefore, proposes to suspend the 
program and remove the regulations.

III. Findings and Certification

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.
    The proposed rule would not modify or add any new regulatory 
burdens on FHA-approved mortgage lenders. Rather, the proposed rule 
would remove Sec.  203.43e from HUD's regulations, in conformity to 
HUD's (and the Administration's) decision to no longer exercise its 
authority to insure mortgages under section 238(c) of the Act. As more 
fully discussed above in the preamble to this rule, the mortgage 
insurance authority provided by section 238(c) of the Act has been 
minimally sought by eligible borrowers and consequently minimally 
utilized by lenders and other small entities participating in the FHA 
programs. Further, as noted above, section 238(c) mortgage insurance 
operated in a manner comparable to FHA's mortgage insurance program 
under section 203(b)

[[Page 53853]]

of the Act, HUD's primary single-family mortgage insurance program.
    Accordingly, for the above reasons, the undersigned certifies that 
this rule will not have a significant economic impact on a substantial 
number of small entities. Notwithstanding HUD's determination that this 
rule will not have a significant effect on a substantial number of 
small entities, HUD specifically invites comments regarding any less 
burdensome alternatives to this rule that will meet HUD's objectives as 
described in the preamble to this rule.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rule will not have federalism 
implications and would 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 proposed rule does 
not impose any federal mandates on any state, local, or tribal 
governments, or on the private sector, within the meaning of UMRA.

Environmental Impact

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

Catalogue of Federal Domestic Assistance

    The Catalogue of Federal Domestic Assistance Number for the 
principal FHA single-family mortgage insurance program is 14.117.

List of Subjects in 24 CFR Part 203

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

    Accordingly, for the reasons discussed in the preamble, HUD 
proposes to amend 24 CFR part 203 to read as follows:

PART 203--SINGLE FAMILY MORTGAGE INSURANCE

    1. The authority citation for part 203 continues to read as 
follows:

    Authority:  12 U.S.C. 1709, 1710, 1715b, 1715z-16, and 1715u; 42 
U.S.C. 3535(d).


Sec.  203.43e  [Removed]

    2. Remove Sec.  203.43e.

    Dated: August 24, 2011.
Carol J. Galante,
 Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-22189 Filed 8-29-11; 8:45 am]
BILLING CODE 4210-67-P
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