Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 9366-9368 [2021-02867]
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9366
Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices
54. Tradition Mortgage LLC, Lakeville,
MN [Docket No. 19–2049–MR]
Action: On May 12, 2020, the Board
voted to enter into a settlement
agreement with Tradition Mortgage LLC,
(‘‘Tradition Mortgage’’) that included a
civil money penalty of $14,819. The
settlement agreement does not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of HUD requirements:
Tradition Mortgage (a) failed to timely
notify HUD of a state sanction in fiscal
year 2018; and (b) submitted a false
certification to HUD concerning
Tradition Mortgage’s fiscal year 2018.
55. United Home Loans, Inc.,
Westchester, IL [Docket No. 20–2015–
MR]
Action: On September 1, 2020, the
Board voted to accept a settlement
agreement with United Home Loans,
Inc. (‘‘United Home’’) that included a
civil money penalty of $5,000. The
settlement does not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of HUD requirements: United Home
failed to timely notify HUD of a sanction
in fiscal year 2019.
56. Valley Mortgage Inc., Fargo, ND
[Docket No. 19–1956–MR]
Action: On December 17, 2019, the
Board voted to enter into a settlement
agreement with Valley Mortgage Inc.
(‘‘Valley Mortgage’’) that included a
civil money penalty of $9,468 and the
indemnification of one FHA-insured
mortgage for a term of five years. The
settlement agreement does not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
of HUD requirements: Valley Mortgage
violated FHA underwriting
requirements by approving a loan that
was not eligible for FHA insurance by
failing to properly calculate the
borrowers’ effective income.
57. VIG Mortgage Corporation, San
Juan, PR [Docket No. 20–2016–MR]
Action: On May 12, 2020, voted to
enter into a settlement agreement with
VIG Mortgage Corporation (‘‘VIG’’) that
included a civil money penalty of
$4,909. The settlement agreement does
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged violation
of HUD requirements: VIG Mortgage
failed to timely notify HUD of a change
VerDate Sep<11>2014
17:27 Feb 11, 2021
Jkt 253001
to VIG Mortgage’s business structure,
consisting of a change in ownership, in
fiscal year 2018.
58. Weststar Mortgage Corporation,
Albuquerque, NM [Docket No. 20–2005–
MR]
Action: On May 12, 2020, the Board
voted to enter into a settlement
agreement with Westar Mortgage
Corporation (‘‘Weststar’’) that included
a civil money penalty of $5,000. The
settlement agreement does not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
of HUD requirements: Weststar failed to
timely notify HUD of a sanction in fiscal
year 2019.
II. Lenders That Failed To Timely Meet
Requirements for Annual
Recertification of HUD/FHA Approval
but Came Into Compliance
Action: The Board entered into
settlement agreements with the
following lenders, which required the
lender to pay a civil money penalty
without admitting fault or liability.
Cause: The Board took these actions
based upon allegations that the listed
lenders failed to comply with HUD’s
annual recertification requirements in a
timely manner.
The lenders below paid the following
civil money penalty amounts:
1. Central Bank and Trust Lander, WY
($10,067) [Docket No. 20–2038–MRT]
The following lenders paid civil
money penalties of $5,000.
2. Community Investment Corporation,
Chicago, IL [Docket No. 20–2081–
MRT]
3. Great Lakes Financial Group Ltd,
Cleveland, OH [Docket No. 20–2090–
MRT]
The following lenders paid civil
money penalties of $4,500.
4. Buckeye State Bank, Powell, OH
[Docket No. 20–2029–MRT]
5. First Flight Federal Credit Union,
Cary, NC [Docket No. 20–2032–MRT]
6. Grand Savings Bank, Grove, OK
[Docket No. 20–2034–MRT]
7. SWI Financial Services Inc,
Escondido, CA [Docket No. 20–2032–
MRT]
8. Windsor Federal Savings [Docket No.
19–2040–MRT]
III. Lenders That Failed To Meet
Requirements for Annual
Recertification of HUD/FHA Approval
Action: The Board voted to withdraw
the FHA approval of each of the lenders
listed below for a period of one (1) year.
Cause: The Board took this action
based upon allegations that the lenders
PO 00000
Frm 00050
Fmt 4703
Sfmt 4703
listed below were not in compliance
with HUD’s annual recertification
requirements.
1. Apex Lending Inc., Santa Ana, CA
2. Aries Loans Inc., El Segundo, CA
3. City National Bank of New Jersey,
Newark, NJ
4. Consumer Loan Services, LLC, La
Crosse, WI
5. Gulf Atlantic Funding Group, Davie,
FL
6. Metro Phoenix Financial Services,
LLC, Phoenix, AZ
7. Mortgage Bank of California,
Manhattan Beach, CA
8. South Central Bank and Trust Co.,
Chicago, IL
9. United Police Federal Credit Union,
Miami, FL
Janet M. Golrick,
Acting Assistant Secretary for Housing/FHA
Commissioner Chair, Mortgagee Review
Board.
[FR Doc. 2021–02921 Filed 2–11–21; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6245–N–01]
Mortgage and Loan Insurance
Programs Under the National Housing
Act—Debenture Interest Rates
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, 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, 2021, is3⁄4
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, 2021, is 13⁄8 percent.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Olazabal, Department of
Housing and Urban Development, 451
Seventh Street SW, Room 5146,
SUMMARY:
E:\FR\FM\12FEN1.SGM
12FEN1
Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices
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
Federal Information Relay Service at
(800) 877–8339 (this is a toll-free
number).
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) shall 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 highest. 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, 2021, is 13⁄8
percent; and (2) has approved the
establishment of the debenture interest
rate by the Secretary of HUD at 13⁄8
percent for the 6-month period
beginning January 1, 2021. 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 2021.
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 ................
VerDate Sep<11>2014
on or after
Jan. 1, 1980
July 1, 1980
17:27 Feb 11, 2021
prior to
July 1, 1980.
Jan. 1, 1981.
Jkt 253001
Effective
interest rate
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 ................
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 ................
PO 00000
Frm 00051
on or after
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
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
Fmt 4703
prior to
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.
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.
Sfmt 4703
Effective
interest rate
23⁄4
31⁄8
33⁄8
23⁄4
21⁄4
11⁄4
13⁄8
................
................
................
................
................
................
................
on or after
Jan. 1, 2018
July 1, 2018
Jan. 1, 2019
July 1, 2019
Jan. 1, 2020
July 1, 2020
Jan. 1, 2021
9367
prior to
July 1, 2018.
Jan. 1, 2019.
July 1, 2019.
Jan. 1, 2020.
July 1, 2020.
Jan. 1, 2021.
July 1, 2021.
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
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 a 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
E:\FR\FM\12FEN1.SGM
12FEN1
9368
Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices
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, 2021, is3⁄4
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).)
Janet M. Golrick,
Acting Assistant Secretary for Housing—
Federal Housing Commissioner.
[FR Doc. 2021–02867 Filed 2–11–21; 8:45 am]
BILLING CODE 4210–67–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 337–TA–1162]
Certain Touch-Controlled Mobile
Devices, Computers, and Components
Thereof; Commission Determination
Not To Review an Initial Determination
Terminating the Investigation as to
Amazon, Dell, Lenovo, Microsoft,
Motorola, and Samsung Based on
Settlement; Termination of
Investigation
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
Notice is hereby given that
the U.S. International Trade
Commission (‘‘Commission’’) has
determined not to review an initial
determination (‘‘ID’’) (Order No. 66) of
the presiding administrative law judge
(‘‘ALJ’’) that terminates the investigation
as to the remaining respondents
(Amazon, Dell, Lenovo, Microsoft,
Motorola, and Samsung) based on a
settlement. This investigation is
terminated.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Ronald A. Traud, Esq., Office of the
General Counsel, U.S. International
Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202)
205–3427. Copies of non-confidential
VerDate Sep<11>2014
17:27 Feb 11, 2021
Jkt 253001
documents filed in connection with this
investigation may be viewed on the
Commission’s electronic docket (EDIS)
at https://edis.usitc.gov. For help
accessing EDIS, please email
EDIS3Help@usitc.gov. General
information concerning the Commission
may also be obtained by accessing its
internet server at https://www.usitc.gov.
Hearing-impaired persons are advised
that information on this matter can be
obtained by contacting the
Commission’s TDD terminal on (202)
205–1810.
SUPPLEMENTARY INFORMATION: The
Commission instituted this investigation
on June 24, 2019, based on a complaint
filed by Neodron Ltd. of Dublin, Ireland
(‘‘Neodron’’). 84 FR 29545 (June 24,
2019). The complaint, as amended,
alleges violations of section 337 of the
Tariff Act of 1930, as amended, 19
U.S.C. 1337 (‘‘section 337’’), based upon
the importation into the United States,
the sale for importation, and the sale
within the United States after
importation of certain touch-controlled
mobile devices, computers, and
components thereof by reason of
infringement of certain claims of U.S.
Patent Nos. 8,432,173; 8,791,910;
9,024,790; and 9,372,580. Id.; 84 FR
55584 (Oct. 17, 2019). The amended
complaint further alleges that an
industry in the United States exists as
required by section 337. 84 FR 29545;
84 FR 55584. The notice of
investigation, as amended, named as
respondents Amazon.com, Inc. of
Seattle, Washington (‘‘Amazon’’); Dell
Inc. of Round Rock, Texas; Dell
Products LP of Round Rock, Texas
(together, ‘‘Dell’’); HP Inc. of Palo Alto,
California (‘‘HP’’); Lenovo Group Ltd. of
Beijing, China; Lenovo (United States)
Inc. of Morrisville, North Carolina
(together, ‘‘Lenovo’’); Microsoft
Corporation of Redmond, Washington
(‘‘Microsoft’’); Motorola Mobility LLC of
Chicago, Illinois (‘‘Motorola’’); Samsung
Electronics Co., Ltd. of Suwon, South
Korea; and Samsung Electronics
America, Inc. of Ridgefield Park, New
Jersey (together, ‘‘Samsung’’). 84 FR
29545; 84 FR 55584. The Office of
Unfair Import Investigations is not
participating in the investigation. 84 FR
29545.
On September 2, 2020, this
investigation was terminated as to HP.
Order No. 59 (Aug. 20, 2020),
unreviewed, Notice (Sept. 2, 2020).
On January 25, 2021, Neodron,
Amazon, Dell, Lenovo, Microsoft,
Motorola, and Samsung filed a joint
motion to terminate all remaining
respondents from the investigation
based on a settlement agreement.
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
On January 27, 2021, the ALJ issued
Order No. 66, the subject ID, which
granted the motion. The ID found that
the motion complies with Commission
Rule 210.21(b). The ID further found
that terminating the investigation as to
all remaining respondents will not
adversely affect the public interest.
Because the investigation had already
terminated as to HP, the ID would result
in the termination of the investigation in
its entirety. No petitions for review of
the ID were filed.
The Commission has determined not
to review the subject ID. The
investigation is hereby terminated in its
entirety.
The Commission vote for this
determination took place on February 8,
2021.
The authority for the Commission’s
determination is contained in section
337 of the Tariff Act of 1930, as
amended (19 U.S.C. 1337), and in Part
210 of the Commission’s Rules of
Practice and Procedure (19 CFR part
210).
By order of the Commission.
Issued: February 8, 2021.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2021–02877 Filed 2–11–21; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 337–TA–1179]
Certain Pouch-Type Battery Cells,
Battery Modules, and Battery Packs,
Components Thereof, and Products
Containing the Same; Commission
Determination Not To Review an Initial
Determination Granting Complainants’
Motion To Amend the Complaint and
Notice of Investigation and Terminate
the Investigation as to Certain Claims
Based on Withdrawal of the Complaint
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
Notice is hereby given that
the U.S. International Trade
Commission (‘‘Commission’’) has
determined not to review an initial
determination (‘‘ID’’) (Order No. 53) of
the presiding chief administrative law
judge (‘‘CALJ’’) granting complainants’
corrected motion (1) for leave to amend
the complaint and notice of
investigation to reflect the respondents’
corporate reorganization and (2) to
withdraw allegations concerning certain
claims of U.S. Patent No. 10,121,994
(‘‘the ’994 patent’’) from the complaint.
SUMMARY:
E:\FR\FM\12FEN1.SGM
12FEN1
]]>Agencies
[Federal Register Volume 86, Number 28 (Friday, February 12, 2021)]
[Notices]
[Pages 9366-9368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02867]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6245-N-01]
Mortgage and Loan Insurance Programs Under the National Housing
Act--Debenture Interest Rates
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, 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, 2021, is\3/4\ 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, 2021, is 1\3/8\
percent.
FOR FURTHER INFORMATION CONTACT: Elizabeth Olazabal, Department of
Housing and Urban Development, 451 Seventh Street SW, Room 5146,
[[Page 9367]]
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 Federal Information Relay
Service at (800) 877-8339 (this is a toll-free number).
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) shall 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 highest. 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, 2021, is 1\3/8\ percent; and
(2) has approved the establishment of the debenture interest rate by
the Secretary of HUD at 1\3/8\ percent for the 6-month period beginning
January 1, 2021. 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 2021.
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.
2\1/4\.......................... Jan. 1, 2020...... July 1, 2020.
1\1/4\.......................... July 1, 2020...... Jan. 1, 2021.
1\3/8\.......................... Jan. 1, 2021...... July 1, 2021.
------------------------------------------------------------------------
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 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 a 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
[[Page 9368]]
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, 2021, is\3/4\ 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).)
Janet M. Golrick,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2021-02867 Filed 2-11-21; 8:45 am]
BILLING CODE 4210-67-P
