Section 184 Indian Housing Loan Guarantee Program; Reduction to the Upfront and Annual Loan Guarantee Fees, 28598 [2023-09479]
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Federal Register / Vol. 88, No. 86 / Thursday, May 4, 2023 / Notices
information technology, e.g., permitting
electronic submission of responses.
HUD encourages interested parties to
submit comment in response to these
questions.
C. Authority
Section 3507 of the Paperwork
Reduction Act of 1995, 44 U.S.C.
chapter 35.
Steven Durham,
Acting Chief, Office of Policy, Programs and
Legislative Initiatives.
[FR Doc. 2023–09465 Filed 5–3–23; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6389–N–01]
Section 184 Indian Housing Loan
Guarantee Program; Reduction to the
Upfront and Annual Loan Guarantee
Fees
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
AGENCY:
The Section 184 Indian
Housing Loan Guarantee program
(‘‘Section 184 program’’) is a home
mortgage program specifically designed
for American Indian and Alaska Native
families, Alaska villages, Tribes, or
Tribally Designated Housing Entities.
Congress established this program in
1992 to facilitate homeownership and
increase access to capital in Native
American communities. Based on the
Section 184 program’s strong
performance and low default rate, HUD
has determined that the fees charged to
the borrower can be reduced without
risk to the overall performance of the
program. HUD is hereby exercising its
authority to decrease the upfront loan
guarantee fee from 1.50 to 1.00 percent
and the annual loan guarantee fee from
0.25 to 0.00 percent for all new or
updated Section 184 Firm Commitments
as of the effective date of this Notice,
including refinances.
DATES: Applicable Date: July 1, 2023.
FOR FURTHER INFORMATION CONTACT:
Heidi J. Frechette, Deputy Assistant
Secretary for Native American
Programs, Office of Public and Indian
Housing, Department of Housing and
Urban Development, 451 7th Street SW,
Room 4108, Washington, DC 20410;
telephone number 202–401–7914 (this
is not a toll-free number). HUD
welcomes and is prepared to receive
calls from individuals who are deaf or
hard of hearing, as well as individuals
ddrumheller on DSK120RN23PROD with NOTICES1
SUMMARY:
VerDate Sep<11>2014
17:12 May 03, 2023
Jkt 259001
with speech or communication
disabilities. To learn more about how to
make an accessible telephone call,
please visit https://www.fcc.gov/
consumers/guides/telecommunicationsrelay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Section 184 of the Housing and
Community Development Act of 1992
(Pub. L. 102–550, approved October 28,
1992), as amended, established the
Section 184 program to provide access
to sources of private mortgage financing
to Indian families, Indian housing
authorities, and Indian tribes. Congress
established this program in 1992 to
facilitate homeownership and increase
access to capital in Native American
Communities. The Section 184 program
addresses obstacles to mortgage
financing on trust land and in other
Indian and Alaska Native areas by
giving HUD the authority to guarantee
loans to eligible persons and entities to
construct, acquire, refinance, or
rehabilitate one- to four-family
dwellings in these areas.
The Section 184 program is funded by
a combination of annual appropriations
and upfront and annual fees collected
from the borrower. Program costs
include amounts for claims, contracts,
and other expenses related to
foreclosure. To ensure the program has
enough funding, pursuant to 12 U.S.C.
1715z–13a(d) and 24 CFR 1005.109,
HUD has the authority to establish an
upfront loan guarantee fee in an amount
not exceeding 3.00 percent of the
principal obligation of the loan and an
annual loan guarantee fee in an amount
not exceeding 1.00 percent of the
remaining guaranteed balance.
On March 5, 2014, HUD issued a
Notice increasing the upfront loan
guarantee fee from 1.00 to 1.50 percent.
(79 FR 12520). The new loan guarantee
fee became effective on April 4, 2014.
On October 7, 2014, HUD issued a
Notice exercising its statutory authority
to implement an annual loan guarantee
fee to the borrower in the amount of
0.15 percent. (79 FR 60492). The new
annual loan guarantee fee became
effective on November 15, 2014.
On November 1, 2016, HUD issued a
second Notice increasing the annual
loan guarantee fee from 0.15 to 0.25
percent. (81 FR 75836). The new annual
loan guarantee fee became effective on
December 1, 2016.
Since 2016, the Section 184 program
has consistently experienced a very low
default rate. Lenders are doing a better
job of underwriting and servicing the
loans, and Tribes continue to
proactively provide housing counseling
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
and support in an effort to keep Native
American families in their homes. These
factors have strengthened the financial
performance of the Section 184
program. As a result, the program can
support a reduction of loan guarantee
fees to Native American borrowers
without increasing financial risk to the
Fund.
The reduction in fees will make
Section 184 loans more affordable to
Native American families and help
remove barriers to private financial
capital. Reducing the upfront and
annual loan guarantee fees will have a
positive financial impact on a typical
borrower. Under the revised fee
structure, the average family could save
almost $5,700 over the course of the
loan, which is a meaningful savings for
an average Native American family.
II. Reduction of the Upfront and
Annual Loan Guarantee Fee
This Notice reduces the Section 184
program upfront loan guarantee fee from
1.50 to 1.00 percent and the annual loan
guarantee fee from 0.25 to 0.00 percent.
This reduction will apply to all Section
184 program applicants receiving a new
or updated Section 184 Firm
Commitment as of the applicable date of
this Notice, including refinances. This
reduction will not apply to loans
currently guaranteed by this program.
III. Environmental Impact
This Notice involves the
establishment of a rate or cost
determination that does not constitute a
development decision affecting the
physical condition of specific project
areas or building sites. Accordingly,
under 24 CFR 50.19(c)(6), this Notice is
categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (U.S.C. 4321).
Dominique Blom,
General Deputy Assistant Secretary for Public
and Indian Housing.
[FR Doc. 2023–09479 Filed 5–3–23; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7075–N–05]
60-Day Notice of Proposed Information
Collection: Application for Distressed
Cities Technical Assistance NOFO;
OMB Control No.: 2528–0326
Office of Policy Development
and Research, HUD.
ACTION: Notice.
AGENCY:
E:\FR\FM\04MYN1.SGM
04MYN1
]]>Agencies
[Federal Register Volume 88, Number 86 (Thursday, May 4, 2023)]
[Notices]
[Page 28598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09479]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6389-N-01]
Section 184 Indian Housing Loan Guarantee Program; Reduction to
the Upfront and Annual Loan Guarantee Fees
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Section 184 Indian Housing Loan Guarantee program
(``Section 184 program'') is a home mortgage program specifically
designed for American Indian and Alaska Native families, Alaska
villages, Tribes, or Tribally Designated Housing Entities. Congress
established this program in 1992 to facilitate homeownership and
increase access to capital in Native American communities. Based on the
Section 184 program's strong performance and low default rate, HUD has
determined that the fees charged to the borrower can be reduced without
risk to the overall performance of the program. HUD is hereby
exercising its authority to decrease the upfront loan guarantee fee
from 1.50 to 1.00 percent and the annual loan guarantee fee from 0.25
to 0.00 percent for all new or updated Section 184 Firm Commitments as
of the effective date of this Notice, including refinances.
DATES: Applicable Date: July 1, 2023.
FOR FURTHER INFORMATION CONTACT: Heidi J. Frechette, Deputy Assistant
Secretary for Native American Programs, Office of Public and Indian
Housing, Department of Housing and Urban Development, 451 7th Street
SW, Room 4108, Washington, DC 20410; telephone number 202-401-7914
(this is not a toll-free number). HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Section 184 of the Housing and Community Development Act of 1992
(Pub. L. 102-550, approved October 28, 1992), as amended, established
the Section 184 program to provide access to sources of private
mortgage financing to Indian families, Indian housing authorities, and
Indian tribes. Congress established this program in 1992 to facilitate
homeownership and increase access to capital in Native American
Communities. The Section 184 program addresses obstacles to mortgage
financing on trust land and in other Indian and Alaska Native areas by
giving HUD the authority to guarantee loans to eligible persons and
entities to construct, acquire, refinance, or rehabilitate one- to
four-family dwellings in these areas.
The Section 184 program is funded by a combination of annual
appropriations and upfront and annual fees collected from the borrower.
Program costs include amounts for claims, contracts, and other expenses
related to foreclosure. To ensure the program has enough funding,
pursuant to 12 U.S.C. 1715z-13a(d) and 24 CFR 1005.109, HUD has the
authority to establish an upfront loan guarantee fee in an amount not
exceeding 3.00 percent of the principal obligation of the loan and an
annual loan guarantee fee in an amount not exceeding 1.00 percent of
the remaining guaranteed balance.
On March 5, 2014, HUD issued a Notice increasing the upfront loan
guarantee fee from 1.00 to 1.50 percent. (79 FR 12520). The new loan
guarantee fee became effective on April 4, 2014.
On October 7, 2014, HUD issued a Notice exercising its statutory
authority to implement an annual loan guarantee fee to the borrower in
the amount of 0.15 percent. (79 FR 60492). The new annual loan
guarantee fee became effective on November 15, 2014.
On November 1, 2016, HUD issued a second Notice increasing the
annual loan guarantee fee from 0.15 to 0.25 percent. (81 FR 75836). The
new annual loan guarantee fee became effective on December 1, 2016.
Since 2016, the Section 184 program has consistently experienced a
very low default rate. Lenders are doing a better job of underwriting
and servicing the loans, and Tribes continue to proactively provide
housing counseling and support in an effort to keep Native American
families in their homes. These factors have strengthened the financial
performance of the Section 184 program. As a result, the program can
support a reduction of loan guarantee fees to Native American borrowers
without increasing financial risk to the Fund.
The reduction in fees will make Section 184 loans more affordable
to Native American families and help remove barriers to private
financial capital. Reducing the upfront and annual loan guarantee fees
will have a positive financial impact on a typical borrower. Under the
revised fee structure, the average family could save almost $5,700 over
the course of the loan, which is a meaningful savings for an average
Native American family.
II. Reduction of the Upfront and Annual Loan Guarantee Fee
This Notice reduces the Section 184 program upfront loan guarantee
fee from 1.50 to 1.00 percent and the annual loan guarantee fee from
0.25 to 0.00 percent. This reduction will apply to all Section 184
program applicants receiving a new or updated Section 184 Firm
Commitment as of the applicable date of this Notice, including
refinances. This reduction will not apply to loans currently guaranteed
by this program.
III. Environmental Impact
This Notice involves the establishment of a rate or cost
determination that does not constitute a development decision affecting
the physical condition of specific project areas or building sites.
Accordingly, under 24 CFR 50.19(c)(6), this Notice is categorically
excluded from environmental review under the National Environmental
Policy Act of 1969 (U.S.C. 4321).
Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2023-09479 Filed 5-3-23; 8:45 am]
BILLING CODE 4210-67-P
