Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates, 50370-50371 [2021-19492]
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Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
Comment—Energy Conservation
Standards for Manufactured
Housing
VI. Lunch from 12:30 p.m. to 1:30 p.m.
VII. Continued Discussion of
Supplemental Notice of Proposed
Rulemaking and Request for
Comments—Energy Conservation
Standards for Manufactured
Housing and Prepare Comments/
Answers about DOE’s Questions in
Rulemaking for HUD’s review
VIII. Public Comment Period—15
minutes
IX. Wrap Up—DFO & AO
X. Adjourn
Friday, October 8, 2021—10 a.m. to 4
p.m. ET
I. Call to Order and Roll Call
II. Opening Remarks—MHCC Chair &
Designated Federal Officer (DFO)
III. Public Comment Period—15 minutes
IV. Discussion of Department of
Energy’s Supplemental Notice of
Proposed Rulemaking and Request
for Comment—Energy Conservation
Standards for Manufactured
Housing and Prepare Comments/
Answers about DOE’s Questions in
Rulemaking for HUD’s review
V. Lunch from 12:30 p.m. to 1:30 p.m.
VI. Continued Discussion of
Supplemental Notice of Proposed
Rulemaking and Request for
Comment—Energy Conservation
Standards for Manufactured
Housing and Prepare Comments/
Answers about DOE’s Questions in
Rulemaking for HUD’s review
VII. Public Comment Period—15
minutes
VIII. Wrap Up—DFO & AO
IX. Adjourn
jbell on DSKJLSW7X2PROD with NOTICES
Wednesday, October 20, 2021—10 a.m.
to 4 p.m. ET
I. Call to Order and Roll Call
II. Opening Remarks—MHCC Chair &
Designated Federal Officer (DFO)
III. Public Comment Period—15 minutes
IV. Discussion of Department of
Energy’s Supplemental Notice of
Proposed Rulemaking and Request
for Comment—Energy Conservation
Standards for Manufactured
Housing and Continue to Prepare
Comments/Answers about DOE’s
Questions in Rulemaking for HUD’s
review
V. Lunch from 12:30 p.m. to 1:30 p.m.
VI. Continued Discussion of
Supplemental Notice of Proposed
Rulemaking and Request for
Comments—Energy Conservation
Standards for Manufactured
Housing Answers about DOE’s
Questions in Rulemaking for HUD’s
review
VerDate Sep<11>2014
17:21 Sep 07, 2021
Jkt 253001
VII. Public Comment Period—15
minutes
VIII. Wrap Up—DFO & AO
IX. Adjourn
Lopa Kolluri,
Principal Deputy Assistant, Secretary for
Housing.
[FR Doc. 2021–19495 Filed 9–7–21; 8:45 am]
BILLING CODE P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6245–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, 2021, is 11⁄2
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, 2021, is 21⁄4 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
SUMMARY:
PO 00000
Frm 00048
Fmt 4703
Sfmt 4703
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, 2021, is 21⁄4
percent; and (2) has approved the
establishment of the debenture interest
rate by the Secretary of HUD at 21⁄4
percent for the 6-month period
beginning July 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 last 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 .......
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 .......
E:\FR\FM\08SEN1.SGM
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
08SEN1
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
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.
jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
Effective
interest
rate
on or after
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 .......
21⁄4 .......
11⁄4 .......
13⁄8 .......
21⁄4 .......
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 ......
July 1, 2020 .....
Jan 1, 2021 ......
July, 1 2021 .....
prior to
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.
July 1, 2020.
Jan. 1, 2021.
July 1, 2021.
Jan 1, 2022.
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
VerDate Sep<11>2014
17:21 Sep 07, 2021
Jkt 253001
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
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, 2021, is 11⁄2
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.
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
50371
(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).)
Lopa P. Kolluri,
Principal Deputy Assistant, Secretary Office
of Housing-Federal Housing Administration.
[FR Doc. 2021–19492 Filed 9–7–21; 8:45 am]
BILLING CODE 4210–67–P
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E:\FR\FM\08SEN1.SGM
08SEN1
]]>Agencies
[Federal Register Volume 86, Number 171 (Wednesday, September 8, 2021)]
[Notices]
[Pages 50370-50371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19492]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6245-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, 2021, is 1\1/2\ 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, 2021, is 2\1/4\ 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, 2021, is 2\1/4\ percent; and (2)
has approved the establishment of the debenture interest rate by the
Secretary of HUD at 2\1/4\ percent for the 6-month period beginning
July 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 last 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.
[[Page 50371]]
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.
2\1/4\.......................... July, 1 2021...... Jan 1, 2022.
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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 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, 2021, is 1\1/2\ 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).)
Lopa P. Kolluri,
Principal Deputy Assistant, Secretary Office of Housing-Federal Housing
Administration.
[FR Doc. 2021-19492 Filed 9-7-21; 8:45 am]
BILLING CODE 4210-67-P
