Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 58405-58406 [2019-23789]

Download as PDF 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]


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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