Section 184 Indian Housing Loan Guarantee Program Increase to Annual Premium, 75836-75837 [2016-26331]

Download as PDF 75836 Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Notices DHS may not be able to contact you for purposes related to the meeting. Accessing and Correcting Information: If you are unable to access or correct this information by using the method that you originally used to submit it, you may direct your request in writing to the DHS Deputy Chief FOIA Officer at foia@hq.dhs.gov. Additional instructions are available at https://www.dhs.gov/foia and in the DHS/ALL–002 Mailing and Other Lists System of Records referenced above. Dated: October 25, 2016. Jonathan R. Cantor, Acting Chief Privacy Officer, Department of Homeland Security. [FR Doc. 2016–26275 Filed 10–31–16; 8:45 am] BILLING CODE 9110–9L–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5974–N–01] Section 184 Indian Housing Loan Guarantee Program Increase to Annual Premium Office of the Assistant Secretary for Public and Indian Housing, HUD. ACTION: Notice. AGENCY: The Section 184 Indian Housing Loan Guarantee program (Section 184 program) is a home mortgage program specifically designed for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. Over the last five years, the Section 184 program has doubled the number of loans and eligible families being assisted by the program. For HUD to continue to meet the increasing demand for participation in this program, HUD is exercising its authority to increase the annual premium to the borrower from 0.15 to 0.25 percent of the remaining loan balance. This annual premium will continue until the unpaid principal balance, excluding the upfront loan guarantee fee, reaches 78 percent of the lower of the initial sales price or appraised value based on the initial amortization schedule. Effective December 1, 2016 the new annual premium of 0.25 percent of the remaining loan balance will apply to all new loan guarantees, including refinances. asabaliauskas on DSK3SPTVN1PROD with NOTICES SUMMARY: DATES: Effective Date: December 1, 2016. FOR FURTHER INFORMATION CONTACT: Heidi J. Frechette, Deputy Assistant Secretary for Native American Programs, Office of Public and Indian VerDate Sep<11>2014 00:01 Nov 01, 2016 Jkt 241001 Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 4126, Washington, DC 20410; telephone number 202–401–7914 (this is not a toll-free number). Persons with hearing or speech disabilities may access this number through TTY by calling the toll-free Federal Relay Service at 800–877–8339. SUPPLEMENTARY INFORMATION: I. Background Section 184 of the Housing and Community Development Act of 1992 (Pub. L. 102–550, approved October 28, 1992), as amended by the Native American Housing Assistance and SelfDetermination Act of 1996 (Pub. L. 104– 330, approved October 26, 1996) and 2013 Consolidated and Further Continuing Appropriations Act (Pub. L. 113–6, approved March 26, 2013), established the Section 184 program to provide access to sources of private mortgage financing to Indian families, Indian housing authorities, and Indian tribes. Congress established this program in 1992 to facilitate homeownership and increase access to capital in Native American Communities. The Section 184 program addresses obstacles to mortgage financing on trust land and in other Indian and Alaska Native areas by giving HUD the authority to guarantee loans to eligible persons and entities to construct, acquire, refinance, or rehabilitate one- to four-family dwellings in these areas. The Section 184 Loan Guarantee Fund (the Fund) is used to fulfill obligations of the Secretary with respect to the loans guaranteed under this program. The Fund receives annual appropriations to cover the cost of the program, and amounts for claims, notes, mortgages, contracts, and property acquired by the Secretary under the Section 184 program, which reduces the amount of appropriations needed to support the program. In recent years, rapidly growing demand has required HUD to increase the guarantee premium and implement a new annual upfront fee to support new loan guarantees. HUD issued loan guarantee commitments for $495.4 million in fiscal year (FY) 2011, $670.8 million in FY 2012, $672.3 million in FY 2013, $595 million in FY 2014, $738.1 million in FY 2015, and $756.3 million in FY 2016.1 Additionally, expenses have increased for acquisitions, insurance, and other program costs, and HUD has seen higher losses now that the Fund 1 Year-to-date cumulative report totaling Section 184 loans guaranteed through end of July 2016. PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 has guaranteed over $5.5 billion in current loans. On October 7, 2014, HUD issued a notice exercising its new statutory authority to implement an annual premium to the borrower in the amount of 0.15 percent. (79 FR 60492). The notice also provided guidance on the cancellation of the annual premium when the loan reaches the 78 percent loan-to-value ratio. The new annual premium became effective on November 15, 2014 for all new loan guarantees, including refinances. II. Increased Premium To meet projected demand for participation in the Section 184 program for FY 2017, HUD is increasing the annual premium from 0.15 to 0.25 percent of the remaining loan balance until the unpaid principal balance, excluding the upfront loan guarantee fee, reaches 78 percent of the lower of the initial sales price or appraised value based on the initial amortization schedule on all new loans, including refinances. This increase will apply to all new program applicants as of the effective date of this notice. It will not apply to existing mortgages guaranteed by this program. Without an increase in the annual premium, HUD will not have sufficient funding to the meet the anticipated demand for Section 184 mortgage loans in FY 2017. The decision to increase the annual loan guarantee premium provides a balanced approach that addresses the current demands for the program while focusing on the need to remain affordable. By increasing the annual premium paid by borrowers, the credit subsidy rate 2 will go down, and HUD expects the program will be able to guarantee the volume of loans predicted for FY 2017. An annual premium of 0.25 percent would cost a borrower with a $175,000 mortgage (the average loan size for the program) an extra $36.18 a month in total monthly fees on the borrower’s monthly payment or $434.16 annually. Since the 0.25 percent annual premium is tied to the loan balance, the annual premium will decrease for the borrower every year as the loan balance declines and then disappear after the loan-to-value ratio reaches 78 percent of the lower of the initial sales price or appraised value based on the initial amortization schedule. Even with these additional costs to borrowers, the Section 184 program will still be one of the least expensive loan products available to Native borrowers. While 2 Credit Subsidy Rate as defined in the Federal Credit Reform Act (FCRA) of 1990, as amended by the Balanced Budget Act of 1997. E:\FR\FM\01NON1.SGM 01NON1 Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / Notices paying an annual premium may be a hardship for some potential borrowers, HUD believes it will have a limited impact on the demand for the program, and the new annual premium will allow HUD to continue to meet the demand for mortgage lending transactions in fiscal year 2017 so that more Indian and Alaska Native families have the opportunity to become homeowners. To reduce some of the impact accompanying the annual premium, the payment of the annual premium can be made through monthly payments, to spread out the cost for borrowers, or annual and lump sum payments, to keep a borrower’s monthly payment lower. This notice increases the Section 184 program annual premium to 0.25 percent of the remaining loan balance for all new case numbers assigned on or after December 1, 2016 until the unpaid principal balance, excluding the upfront loan guarantee fee, reaches 78 percent of the lower of the initial sales price or appraised value based on the initial amortization schedule. This notice does not supersede HUD’s guidance on the cancellation of the annual premium when the loan reaches the 78 percent loan-to-value ratio that was provided in the October 7, 2014 Notice (79 FR 60492). IV. Tribal Consultation HUD’s policy is to consult with Indian tribes early in the process on matters that have tribal implications. Accordingly, on June 26, 2016, HUD sent letters to all tribal leaders participating in the Section 184 program, informing them of the nature of the forthcoming notice and soliciting comments. A summary of comments received and responses can be found on HUD’s Web site at: https:// portal.hud.gov/hudportal/HUD?src=/ program_offices/public_indian_ housing/ih/homeownership/184. asabaliauskas on DSK3SPTVN1PROD with NOTICES V. Environmental Impact This notice involves the establishment of a rate or cost determination that does not constitute a development decision affecting the physical condition of specific project areas or building sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (U.S.C. 4321). VerDate Sep<11>2014 00:01 Nov 01, 2016 Jkt 241001 Dated: October 24, 2016. Lourdes Castro Ramirez, Principal Deputy Assistant Secretary for Public and Indian Housing. [FR Doc. 2016–26331 Filed 10–31–16; 8:45 am] BILLING CODE 4210–67–P 75837 For additional information about submitting comments, see the ‘‘Request for Public Comments’’ section below. FOR FURTHER INFORMATION CONTACT: Mary E. Jennings (see ADDRESSES). SUPPLEMENTARY INFORMATION: Background DEPARTMENT OF THE INTERIOR Fish and Wildlife Service [FWS–R4–ES–2016–N152]; [FXES11130400000C2–167–FF04E00000] Endangered and Threatened Wildlife and Plants; Technical/Agency Draft Recovery Plan for the Chucky Madtom Fish and Wildlife Service, Interior. ACTION: Notice of availability and request for public comment. AGENCY: We, the Fish and Wildlife Service (Service), announce the availability of the technical/agency draft recovery plan for the endangered chucky madtom, a fish. The draft recovery plan includes specific recovery objectives and criteria that must be met in order for us to reclassify this species to threatened status under the Endangered Species Act of 1973, as amended (Act). We request review and comment on this draft recovery plan from local, State, and Federal agencies, and the public. DATES: In order to be considered, comments on the draft recovery plan must be received on or before January 3, 2017. ADDRESSES: Reviewing documents: If you wish to review this technical/ agency draft recovery plan, you may obtain a copy by contacting Mary E. Jennings, Field Supervisor, U.S. Fish and Wildlife Service, Tennessee Ecological Services Field Office, 446 Neal Street, Cookeville, TN 38501; tel. 931–528–6481; or by visiting the Service’s Tennessee Field Office Web site at https://www.fws.gov/cookeville. Submitting comments: If you wish to comment, you may submit your comments by one of the following methods: 1. You may submit written comments and materials to us, at the above address. 2. You may hand-deliver written comments to our Tennessee Field Office, at the above address, or fax them to 931–528–7075. 3. You may send comments by email to mary_e_jennings@fws.gov. Please include ‘‘Chucky Madtom Draft Recovery Plan Comments’’ on the subject line. SUMMARY: PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 We listed the chucky madtom (Noturus crypticus; a small fish) as endangered under the Act (16 U.S.C. 1531 et seq.) on August 9, 2011 (76 FR 48722). The chucky madtom grows to 2.9 inches (7.4 centimeters) total length and is endemic to the upper Tennessee River system in Tennessee. This fish is historically known from two creek systems, but only currently persists in Little Chucky Creek where only 14 individuals have ever been collected. All 14 have been collected at this site since 1991; however, none have been captured since 2004. Chucky madtoms are currently known from a single tributary to the Nolichucky River in stream sections 5 to 7 meters (16 to 23 feet) wide in riffle and swim through streams lined by water willow (Justicia americana) beds with slow-to-moderate current over peasized gravel, cobble, or slab-rock substrates. In addition to habitat degradation, threats to the species include extreme curtailment of habitat and range, small population size and low numbers, inability to offset mortality with natural reproduction and recruitment, and their resulting vulnerability to natural or human induced catastrophic events (e.g., droughts, pollution spills, etc.). Surviving populations are threatened by water quality and habitat deterioration. Another potential threat is introduced crayfishes (Orconectes sp.), which are thought to compete with chucky madtoms for access to the little habitat that is available in Little Chucky Creek. Approximately 20 river miles (32 river kilometers) of stream channels in Little Chucky Creek, Greene County, Tennessee, have been designated as critical habitat for the chucky madtom (77 FR 63604). This fish has a recovery priority number of 5 which indicates the species faces a high degree of threat, but has a low recovery potential. Restoring an endangered or threatened animal or plant to the point where it is again a secure, selfsustaining member of its ecosystem is a primary goal of our endangered species program. To help guide the recovery effort, we prepare recovery plans for most listed species. Recovery plans describe actions considered necessary for conservation of the species, establish criteria for downlisting or delisting, and E:\FR\FM\01NON1.SGM 01NON1

Agencies

[Federal Register Volume 81, Number 211 (Tuesday, November 1, 2016)]
[Notices]
[Pages 75836-75837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26331]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5974-N-01]


Section 184 Indian Housing Loan Guarantee Program Increase to 
Annual Premium

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice.

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

SUMMARY: The Section 184 Indian Housing Loan Guarantee program (Section 
184 program) is a home mortgage program specifically designed for 
American Indian and Alaska Native families, Alaska villages, tribes, or 
tribally designated housing entities. Over the last five years, the 
Section 184 program has doubled the number of loans and eligible 
families being assisted by the program. For HUD to continue to meet the 
increasing demand for participation in this program, HUD is exercising 
its authority to increase the annual premium to the borrower from 0.15 
to 0.25 percent of the remaining loan balance. This annual premium will 
continue until the unpaid principal balance, excluding the upfront loan 
guarantee fee, reaches 78 percent of the lower of the initial sales 
price or appraised value based on the initial amortization schedule. 
Effective December 1, 2016 the new annual premium of 0.25 percent of 
the remaining loan balance will apply to all new loan guarantees, 
including refinances.

DATES: Effective Date: December 1, 2016.

FOR FURTHER INFORMATION CONTACT: Heidi J. Frechette, Deputy Assistant 
Secretary for Native American Programs, Office of Public and Indian 
Housing, Department of Housing and Urban Development, 451 7th Street 
SW., Room 4126, Washington, DC 20410; telephone number 202-401-7914 
(this is not a toll-free number). Persons with hearing or speech 
disabilities may access this number through TTY by calling the toll-
free Federal Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 184 of the Housing and Community Development Act of 1992 
(Pub. L. 102-550, approved October 28, 1992), as amended by the Native 
American Housing Assistance and Self-Determination Act of 1996 (Pub. L. 
104-330, approved October 26, 1996) and 2013 Consolidated and Further 
Continuing Appropriations Act (Pub. L. 113-6, approved March 26, 2013), 
established the Section 184 program to provide access to sources of 
private mortgage financing to Indian families, Indian housing 
authorities, and Indian tribes. Congress established this program in 
1992 to facilitate homeownership and increase access to capital in 
Native American Communities. The Section 184 program addresses 
obstacles to mortgage financing on trust land and in other Indian and 
Alaska Native areas by giving HUD the authority to guarantee loans to 
eligible persons and entities to construct, acquire, refinance, or 
rehabilitate one- to four-family dwellings in these areas.
    The Section 184 Loan Guarantee Fund (the Fund) is used to fulfill 
obligations of the Secretary with respect to the loans guaranteed under 
this program. The Fund receives annual appropriations to cover the cost 
of the program, and amounts for claims, notes, mortgages, contracts, 
and property acquired by the Secretary under the Section 184 program, 
which reduces the amount of appropriations needed to support the 
program. In recent years, rapidly growing demand has required HUD to 
increase the guarantee premium and implement a new annual upfront fee 
to support new loan guarantees. HUD issued loan guarantee commitments 
for $495.4 million in fiscal year (FY) 2011, $670.8 million in FY 2012, 
$672.3 million in FY 2013, $595 million in FY 2014, $738.1 million in 
FY 2015, and $756.3 million in FY 2016.\1\ Additionally, expenses have 
increased for acquisitions, insurance, and other program costs, and HUD 
has seen higher losses now that the Fund has guaranteed over $5.5 
billion in current loans.
---------------------------------------------------------------------------

    \1\ Year-to-date cumulative report totaling Section 184 loans 
guaranteed through end of July 2016.
---------------------------------------------------------------------------

    On October 7, 2014, HUD issued a notice exercising its new 
statutory authority to implement an annual premium to the borrower in 
the amount of 0.15 percent. (79 FR 60492). The notice also provided 
guidance on the cancellation of the annual premium when the loan 
reaches the 78 percent loan-to-value ratio. The new annual premium 
became effective on November 15, 2014 for all new loan guarantees, 
including refinances.

II. Increased Premium

    To meet projected demand for participation in the Section 184 
program for FY 2017, HUD is increasing the annual premium from 0.15 to 
0.25 percent of the remaining loan balance until the unpaid principal 
balance, excluding the upfront loan guarantee fee, reaches 78 percent 
of the lower of the initial sales price or appraised value based on the 
initial amortization schedule on all new loans, including refinances. 
This increase will apply to all new program applicants as of the 
effective date of this notice. It will not apply to existing mortgages 
guaranteed by this program. Without an increase in the annual premium, 
HUD will not have sufficient funding to the meet the anticipated demand 
for Section 184 mortgage loans in FY 2017. The decision to increase the 
annual loan guarantee premium provides a balanced approach that 
addresses the current demands for the program while focusing on the 
need to remain affordable.
    By increasing the annual premium paid by borrowers, the credit 
subsidy rate \2\ will go down, and HUD expects the program will be able 
to guarantee the volume of loans predicted for FY 2017. An annual 
premium of 0.25 percent would cost a borrower with a $175,000 mortgage 
(the average loan size for the program) an extra $36.18 a month in 
total monthly fees on the borrower's monthly payment or $434.16 
annually. Since the 0.25 percent annual premium is tied to the loan 
balance, the annual premium will decrease for the borrower every year 
as the loan balance declines and then disappear after the loan-to-value 
ratio reaches 78 percent of the lower of the initial sales price or 
appraised value based on the initial amortization schedule. Even with 
these additional costs to borrowers, the Section 184 program will still 
be one of the least expensive loan products available to Native 
borrowers. While

[[Page 75837]]

paying an annual premium may be a hardship for some potential 
borrowers, HUD believes it will have a limited impact on the demand for 
the program, and the new annual premium will allow HUD to continue to 
meet the demand for mortgage lending transactions in fiscal year 2017 
so that more Indian and Alaska Native families have the opportunity to 
become homeowners.
---------------------------------------------------------------------------

    \2\ Credit Subsidy Rate as defined in the Federal Credit Reform 
Act (FCRA) of 1990, as amended by the Balanced Budget Act of 1997.
---------------------------------------------------------------------------

    To reduce some of the impact accompanying the annual premium, the 
payment of the annual premium can be made through monthly payments, to 
spread out the cost for borrowers, or annual and lump sum payments, to 
keep a borrower's monthly payment lower.
    This notice increases the Section 184 program annual premium to 
0.25 percent of the remaining loan balance for all new case numbers 
assigned on or after December 1, 2016 until the unpaid principal 
balance, excluding the upfront loan guarantee fee, reaches 78 percent 
of the lower of the initial sales price or appraised value based on the 
initial amortization schedule.
    This notice does not supersede HUD's guidance on the cancellation 
of the annual premium when the loan reaches the 78 percent loan-to-
value ratio that was provided in the October 7, 2014 Notice (79 FR 
60492).

IV. Tribal Consultation

    HUD's policy is to consult with Indian tribes early in the process 
on matters that have tribal implications. Accordingly, on June 26, 
2016, HUD sent letters to all tribal leaders participating in the 
Section 184 program, informing them of the nature of the forthcoming 
notice and soliciting comments. A summary of comments received and 
responses can be found on HUD's Web site at: https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/ih/homeownership/184.

V. Environmental Impact

    This notice involves the establishment of a rate or cost 
determination that does not constitute a development decision affecting 
the physical condition of specific project areas or building sites. 
Accordingly, under 24 CFR 50.19(c)(6), this notice is categorically 
excluded from environmental review under the National Environmental 
Policy Act of 1969 (U.S.C. 4321).

    Dated: October 24, 2016.
Lourdes Castro Ramirez,
Principal Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2016-26331 Filed 10-31-16; 8:45 am]
 BILLING CODE 4210-67-P
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