Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 6967-6968 [2020-02295]
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Federal Register / Vol. 85, No. 25 / Thursday, February 6, 2020 / Notices
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6195–N–01]
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 January 1, 2020, is 21⁄4
percent. The interest rate for debentures
issued under any other provision of the
Act is the rate in effect on the date that
the commitment to insure the loan or
mortgage was issued, or the date that the
loan or mortgage was endorsed (or
initially endorsed if there are two or
more endorsements) for insurance,
whichever rate is higher. The interest
rate for debentures issued under these
other provisions with respect to a loan
or mortgage committed or endorsed
during the 6-month period beginning
January 1, 2020, is 13⁄4 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.
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
lotter on DSKBCFDHB2PROD with NOTICES
SUMMARY:
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set from time to time by the Secretary
of HUD, with the approval of the
Secretary of the Treasury, in an amount
not in excess of the annual interest rate
determined by the Secretary of the
Treasury pursuant to a statutory formula
based on the average yield of all
outstanding marketable Treasury
obligations of maturities of 15 or more
years.
The Secretary of the Treasury (1) has
determined, in accordance with the
provisions of Section 224, that the
statutory maximum interest rate for the
period beginning January 1, 2020, is 13⁄4
percent; and (2) has approved the
establishment of the debenture interest
rate by the Secretary of HUD at 13⁄4
percent for the 6-month period
beginning January 1, 2020. This interest
rate will be the rate borne by debentures
issued with respect to any insured loan
or mortgage (except for debentures
issued pursuant to Section 221(g)(4))
with insurance commitment or
endorsement date (as applicable) within
the first 6 months of 2020).
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
91⁄2 ................
97⁄8 ................
113⁄4 ..............
127⁄8 ..............
123⁄4 ..............
101⁄4 ..............
103⁄8 ..............
111⁄2 ..............
133⁄8 ..............
115⁄8 ..............
111⁄8 ..............
101⁄4 ..............
81⁄4 ................
8 ...................
9 ...................
91⁄8 ................
93⁄8 ................
91⁄4 ................
9 ...................
81⁄8 ................
9 ...................
83⁄4 ................
81⁄2 ................
8 ...................
8 ...................
73⁄4 ................
7 ...................
65⁄8 ................
73⁄4 ................
83⁄8 ................
71⁄4 ................
61⁄2 ................
71⁄4 ................
63⁄4 ................
71⁄8 ................
63⁄8 ................
61⁄8 ................
PO 00000
Frm 00075
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
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
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.
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.
Sfmt 4703
Effective
interest rate
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 ................
13⁄4 ................
On or after
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
6967
Prior to
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.
July 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
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
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06FEN1
6968
Federal Register / Vol. 85, No. 25 / Thursday, February 6, 2020 / Notices
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 in 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 January 1, 2020, is 21⁄4
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.
lotter on DSKBCFDHB2PROD with NOTICES
(Authority: Sections 211, 221, 224, National
Housing Act, 12 U.S.C. 1715b, 1715l, 1715o;
Section 7(d), Department of HUD Act, 42
U.S.C. 3535(d).)
Dated: January 22, 2020.
John L. Garvin,
General Deputy Assistant Secretary for
Housing, Federal Housing Commissioner.
DEPARTMENT OF THE INTERIOR
I. Public Comment Procedures
Fish and Wildlife Service
A. How do I comment on submitted
applications?
We invite the public and local, State,
Tribal, and Federal agencies to comment
on these applications. Before issuing
any of the requested permits, we will
take into consideration any information
that we receive during the public
comment period.
You may submit your comments and
materials by one of the methods in
ADDRESSES. We will not consider
comments sent by email or fax, or to an
address not in ADDRESSES. We will not
consider or include in our
administrative record comments we
receive after the close of the comment
period (see DATES).
When submitting comments, please
specify the name of the applicant and
the permit number at the beginning of
your comment. Provide sufficient
information to allow us to authenticate
any scientific or commercial data you
include. The comments and
recommendations that will be most
useful and likely to influence agency
decisions are: (1) Those supported by
quantitative information or studies; and
(2) those that include citations to, and
analyses of, the applicable laws and
regulations.
[Docket No. FWS–HQ–IA–2020–0002;
FXIA16710900000–201–FF09A30000]
Foreign Endangered Species; Receipt
of Permit Applications
AGENCY:
Fish and Wildlife Service,
Interior.
Notice of receipt of permit
applications; request for comments.
ACTION:
We, the U.S. Fish and
Wildlife Service, invite the public to
comment on applications to conduct
certain activities with foreign species
that are listed as endangered under the
Endangered Species Act (ESA). With
some exceptions, the ESA prohibits
activities with listed species unless
Federal authorization is issued that
allows such activities. The ESA also
requires that we invite public comment
before issuing permits for any activity
otherwise prohibited by the ESA with
respect to any endangered species.
SUMMARY:
We must receive comments by
March 9, 2020.
DATES:
ADDRESSES:
Obtaining Documents: The
applications, application supporting
materials, and any comments and other
materials that we receive will be
available for public inspection at https://
www.regulations.gov in Docket No.
FWS–HQ–IA–2020–0002.
Submitting Comments: When
submitting comments, please specify the
name of the applicant and the permit
number at the beginning of your
comment. You may submit comments
by one of the following methods:
• Internet: https://
www.regulations.gov. Search for and
submit comments on Docket No. FWS–
HQ–IA–2020–0002.
• U.S. mail or hand-delivery: Public
Comments Processing, Attn: Docket No.
FWS–HQ–IA–2020–0002; U.S. Fish and
Wildlife Service Headquarters, MS:
PERMA; 5275 Leesburg Pike, Falls
Church, VA 22041–3803.
For more information, see Public
Comment Procedures under
SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2020–02295 Filed 2–5–20; 8:45 am]
Brenda Tapia, by phone at 703–358–
2185, via email at DMAFR@fws.gov, or
via the Federal Relay Service at 800–
877–8339.
BILLING CODE 4210–67–P
SUPPLEMENTARY INFORMATION:
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19:54 Feb 05, 2020
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PO 00000
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Fmt 4703
Sfmt 4703
B. May I review comments submitted by
others?
You may view and comment on
others’ public comments at https://
www.regulations.gov, unless our
allowing so would violate the Privacy
Act (5 U.S.C. 552a) or Freedom of
Information Act (5 U.S.C. 552).
C. Who will see my comments?
If you submit a comment at https://
www.regulations.gov, your entire
comment, including any personal
identifying information, will be posted
on the website. If you submit a
hardcopy comment that includes
personal identifying information, such
as your address, phone number, or
email address, you may request at the
top of your document that we withhold
this information from public review.
However, we cannot guarantee that we
will be able to do so. Moreover, all
submissions from organizations or
businesses, and from individuals
identifying themselves as
representatives or officials of
organizations or businesses, will be
made available for public disclosure in
their entirety.
II. Background
To help us carry out our conservation
responsibilities for affected species, and
E:\FR\FM\06FEN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 25 (Thursday, February 6, 2020)]
[Notices]
[Pages 6967-6968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02295]
[[Page 6967]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6195-N-01]
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
January 1, 2020, is 2\1/4\ percent. The interest rate for debentures
issued under any other provision of the Act is the rate in effect on
the date that the commitment to insure the loan or mortgage was issued,
or the date that the loan or mortgage was endorsed (or initially
endorsed if there are two or more endorsements) for insurance,
whichever rate is higher. The interest rate for debentures issued under
these other provisions with respect to a loan or mortgage committed or
endorsed during the 6-month period beginning January 1, 2020, is 1\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 January 1, 2020, is 1\3/4\ percent; and
(2) has approved the establishment of the debenture interest rate by
the Secretary of HUD at 1\3/4\ percent for the 6-month period beginning
January 1, 2020. This interest rate will be the rate borne by
debentures issued with respect to any insured loan or mortgage (except
for debentures issued pursuant to Section 221(g)(4)) with insurance
commitment or endorsement date (as applicable) within the first 6
months of 2020).
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.
1\3/4\.......................... Jan. 1, 2020...... July 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 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
[[Page 6968]]
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 in 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 January 1, 2020, is 2\1/4\ percent.
The subject matter of this notice falls within the categorical
exemption from HUD's environmental clearance procedures set forth in 24
CFR 50.19(c)(6). For that reason, no environmental finding has been
prepared for this notice.
(Authority: Sections 211, 221, 224, National Housing Act, 12 U.S.C.
1715b, 1715l, 1715o; Section 7(d), Department of HUD Act, 42 U.S.C.
3535(d).)
Dated: January 22, 2020.
John L. Garvin,
General Deputy Assistant Secretary for Housing, Federal Housing
Commissioner.
[FR Doc. 2020-02295 Filed 2-5-20; 8:45 am]
BILLING CODE 4210-67-P
