Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 58405-58406 [2019-23789]
Download as PDF
<![CDATA[
Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Notices
now determined that issuance of Form
I–305 is unnecessary and is unduly
burdensome. For bonds posted on the
newly revised bond form, ICE will no
longer require cash bond obligors to
submit Form I–305 or Form I–395 after
a bond has been cancelled and will
issue refunds of bond deposits to the
individual or entity identified in ICE
records as the individual or entity
entitled to receive the refund without
requiring Form I–305 or Form I–395 to
be submitted.
Dated: October 28, 2019.
Scott Elmore,
PRA Clearance Officer.
[FR Doc. 2019–23793 Filed 10–30–19; 8:45 am]
BILLING CODE 9111–28–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6166–N–02]
Mortgage and Loan Insurance
Programs Under the National Housing
Act—Debenture Interest Rates
Office of the Assistant
Secretary for Housing, HUD.
ACTION: Notice.
AGENCY:
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 July 1, 2019, is 23⁄8
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
July 1, 2019, is 23⁄4 percent.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Olazabal, Department of
Housing and Urban Development, 451
Seventh Street SW, Room 5146,
Washington, DC 20410–8000; telephone
(202) 402–4608 (this is not a toll-free
number). Individuals with speech or
hearing impairments may access this
number through TTY by calling the tollfree Federal Information Relay Service
at (800) 877–8339.
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:38 Oct 30, 2019
Jkt 250001
Section
224 of the National Housing 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 July 1, 2019, is 23⁄4
percent; and (2) has approved the
establishment of the debenture interest
rate by the Secretary of HUD at 23⁄4
percent for the 6-month period
beginning July 1, 2019. 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 last 6 months of 2019).
For convenience of reference, HUD is
publishing the following chart of
debenture interest rates applicable to
mortgages committed or endorsed since
January 1, 1980:
SUPPLEMENTARY INFORMATION:
Effective
interest rate
91⁄2 ................
97⁄8 ................
113⁄4 ..............
127⁄8 ..............
123⁄4 ..............
101⁄4 ..............
103⁄8 ..............
111⁄2 ..............
133⁄8 ..............
115⁄8 ..............
111⁄8 ..............
101⁄4 ..............
PO 00000
Frm 00037
On or after
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
Fmt 4703
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.
Sfmt 4703
Effective
interest rate
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 ................
41⁄8 ................
27⁄8 ................
23⁄4 ................
21⁄2 ................
27⁄8 ................
35⁄8 ................
31⁄4 ................
3 ...................
27⁄8 ................
27⁄8 ................
21⁄2 ................
23⁄4 ................
27⁄8 ................
23⁄4 ................
31⁄8 ................
33⁄8 ................
23⁄4 ................
On or after
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
Jan. 1, 2012
July 1, 2012
Jan. 1, 2013
July 1, 2013
Jan. 1, 2014
July 1, 2014
Jan. 1, 2015
July 1, 2015
Jan. 1, 2016
July 1, 2016
Jan. 1, 2017
July 1, 2017
Jan. 1, 2018
July 1, 2018
Jan. 1, 2019
July 1, 2019
58405
Prior to
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.
Jan. 1, 2012.
July 1, 2012.
Jan. 1, 2013.
July 1, 2013.
Jan. 1, 2014.
July 1, 2014.
Jan. 1, 2015.
July 1, 2015.
Jan. 1, 2016.
July 1, 2016.
Jan. 1, 2017.
July 1, 2017.
Jan. 1, 2018.
July 1, 2018.
Jan. 1, 2019.
July 1, 2019.
Jan 1, 2020.
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
E:\FR\FM\31OCN1.SGM
31OCN1
khammond on DSKJM1Z7X2PROD with NOTICES
58406
Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Notices
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).
Similarly, Section 520(a) of the
National Housing Act (12 U.S.C. 1735d)
provides for the payment of an
insurance claim in cash on a mortgage
or loan insured under any section of the
National Housing Act before or after the
enactment of the Housing and Urban
Development Act of 1965. The amount
of such payment shall be equivalent to
the face amount of the debentures that
would otherwise be issued, plus an
amount equivalent to the interest which
the debentures would have earned,
computed to a date to be established
pursuant to regulations issued by the
Secretary. The implementing HUD
regulations for multifamily insured
mortgages at 24 CFR 207.259(e)(1) and
(e)(6), when read together, provide that
debenture interest on an multifamily
insurance claim that is paid is cash is
paid from the date of the loan default at
the debenture rate in effect at the time
of commitment or endorsement (or
initial endorsement if there are two or
more endorsements) of the loan,
whichever is higher.
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 July 1, 2019, is 23⁄8
percent.
VerDate Sep<11>2014
16:38 Oct 30, 2019
Jkt 250001
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: October 25, 2019.
John L. Garvin,
General Deputy Assistant Secretary for
Housing.
[FR Doc. 2019–23789 Filed 10–30–19; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7014–N–29]
60-Day Notice of Proposed Information
Collection: HUD-Owned Real Estate
Sales Contract and Addendums
Office of the Assistant
Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Notice.
AGENCY:
HUD is seeking approval from
the Office of Management and Budget
(OMB) for the information collection
described below. In accordance with the
Paperwork Reduction Act, HUD is
requesting comment from all interested
parties on the proposed collection of
information. The purpose of this notice
is to allow for 60 days of public
comment.
DATES: Comments Due Date: December
30, 2019.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street,
SW, Room 4176, Washington, DC
20410–5000; telephone 202–402–3400
(this is not a toll-free number) or email
at Colette.Pollard@hud.gov for a copy of
the proposed forms or other available
information. Persons with hearing or
speech impairments may access this
number through TTY by calling the tollfree Federal Relay Service at (800) 877–
8339.
FOR FURTHER INFORMATION CONTACT:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street
SW, Washington, DC 20410; email
Colette Pollard at Colette.Pollard@
SUMMARY:
PO 00000
Frm 00038
Fmt 4703
Sfmt 4703
hud.gov or telephone 202–402–3400.
This is not a toll-free number. Persons
with hearing or speech impairments
may access this number through TTY by
calling the toll-free Federal Relay
Service at (800) 877–8339.
Copies of available documents
submitted to OMB may be obtained
from Ms. Pollard.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
A. Overview of Information Collection
Title of Information Collection: HUDOwned Real Estate Sales Contract and
Addendums.
OMB Approval Number: 2502–0306.
Type of Request: Extension of
currently approved collection.
Form Number: HUD–9544, HUD–
9548, HUD–9548–B, HUD–9548–C,
HUD–9548–G, HUD–9548–H, HUD–
9545–Y, HUD–9545–Z, SAMS–1101,
SAMS–1103, SAMS–1110, SAMS–1110,
SAMS–1111, SAMS–111–A, SAMS–
1117, SAMS–1120, SAMS–1204.
Description of the need for the
information and proposed use: The
collection of information consists of the
sales contracts and addenda that will be
used in binding contracts between the
purchasers of acquired and owned
single-family properties and HUD. The
Department must also meet the
requirements of the Lead Disclosure
Rule relative to the disclosure of known
lead-based paint and lead-based paint
hazards in HUD sales of its real estate
owned (REO) properties built before
1978. Furthermore, the automated
Single Family Acquired Asset
Management System (SAMS) and the
Asset Disposition and Management
System (ADAMS–P–260) tracks the
activity of an REO property from HUD’s
acquisition through its final sale. The
forms used are part of the collection
effort.
Respondents: Business or other for
profit.
Estimated Number of Respondents:
7,476.
Estimated Number of Responses:
110,136.
Frequency of Response: On occasion.
Average Hours per Response: 5–30
minutes.
Total Estimated Burdens: 31,186.
B. Solicitation of Public Comment
This notice is soliciting comments
from members of the public and affected
parties concerning the collection of
information described in Section A on
the following:
E:\FR\FM\31OCN1.SGM
31OCN1
]]>Agencies
[Federal Register Volume 84, Number 211 (Thursday, October 31, 2019)]
[Notices]
[Pages 58405-58406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23789]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6166-N-02]
Mortgage and Loan Insurance Programs Under the National Housing
Act--Debenture Interest Rates
AGENCY: Office of the Assistant Secretary for Housing, 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 July
1, 2019, is 2\3/8\ 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 July 1, 2019, is 2\3/4\ percent.
FOR FURTHER INFORMATION CONTACT: Elizabeth Olazabal, Department of
Housing and Urban Development, 451 Seventh Street SW, Room 5146,
Washington, DC 20410-8000; telephone (202) 402-4608 (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 National Housing 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 July 1, 2019, is 2\3/4\ percent; and (2)
has approved the establishment of the debenture interest rate by the
Secretary of HUD at 2\3/4\ percent for the 6-month period beginning
July 1, 2019. 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 last 6 months
of 2019).
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.
4\1/8\.......................... July 1, 2011...... Jan. 1, 2012.
2\7/8\.......................... Jan. 1, 2012...... July 1, 2012.
2\3/4\.......................... July 1, 2012...... Jan. 1, 2013.
2\1/2\.......................... Jan. 1, 2013...... July 1, 2013.
2\7/8\.......................... July 1, 2013...... Jan. 1, 2014.
3\5/8\.......................... Jan. 1, 2014...... July 1, 2014.
3\1/4\.......................... July 1, 2014...... Jan. 1, 2015.
3............................... Jan. 1, 2015...... July 1, 2015.
2\7/8\.......................... July 1, 2015...... Jan. 1, 2016.
2\7/8\.......................... Jan. 1, 2016...... July 1, 2016.
2\1/2\.......................... July 1, 2016...... Jan. 1, 2017.
2\3/4\.......................... Jan. 1, 2017...... July 1, 2017.
2\7/8\.......................... July 1, 2017...... Jan. 1, 2018.
2\3/4\.......................... Jan. 1, 2018...... July 1, 2018.
3\1/8\.......................... July 1, 2018...... Jan. 1, 2019.
3\3/8\.......................... Jan. 1, 2019...... July 1, 2019.
2\3/4\.......................... July 1, 2019...... Jan 1, 2020.
------------------------------------------------------------------------
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
[[Page 58406]]
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).
Similarly, Section 520(a) of the National Housing Act (12 U.S.C.
1735d) provides for the payment of an insurance claim in cash on a
mortgage or loan insured under any section of the National Housing Act
before or after the enactment of the Housing and Urban Development Act
of 1965. The amount of such payment shall be equivalent to the face
amount of the debentures that would otherwise be issued, plus an amount
equivalent to the interest which the debentures would have earned,
computed to a date to be established pursuant to regulations issued by
the Secretary. The implementing HUD regulations for multifamily insured
mortgages at 24 CFR 207.259(e)(1) and (e)(6), when read together,
provide that debenture interest on an multifamily insurance claim that
is paid is cash is paid from the date of the loan default at the
debenture rate in effect at the time of commitment or endorsement (or
initial endorsement if there are two or more endorsements) of the loan,
whichever is higher.
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 July 1, 2019, is 2\3/8\ 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: October 25, 2019.
John L. Garvin,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2019-23789 Filed 10-30-19; 8:45 am]
BILLING CODE 4210-67-P
