Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 6967-6968 [2020-02295]

Download as PDF 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: VerDate Sep<11>2014 19:54 Feb 05, 2020 Jkt 250001 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 E:\FR\FM\06FEN1.SGM 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 http:// 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: http:// 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: VerDate Sep<11>2014 19:54 Feb 05, 2020 Jkt 250001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 B. May I review comments submitted by others? You may view and comment on others’ public comments at http:// 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 http:// 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 06FEN1

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]]

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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