Department of Housing and Urban Development August 26, 2014 – Federal Register Recent Federal Regulation Documents

This rule revises FHA's regulations governing its single family adjustable rate mortgage (ARM) program to align FHA interest rate adjustment and notification regulations with the requirements for notifying mortgagors of ARM adjustments, as required by the regulations implementing the Truth in Lending Act (TILA), as recently revised by the Consumer Financial Protection Bureau (CFPB). The final rule requires that an interest rate adjustment resulting in a corresponding change to the mortgagor's monthly payment for an ARM have a 45-day look-back period. The final rule also requires that the mortgagee of an FHA-insured ARM comply with the disclosure and notification requirements of the 2013 TILA Servicing Rule, including at least a 60- day but no more than 120 day advance notice of an adjustment to a mortgagor's monthly payment.

On August 15, 2014, HUD published for public comment proposed Fair Market Rents (FMRs) for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program and Other Programs for Fiscal Year 2015. After publication, HUD noted that the Schedule B Addendum, which addresses small area FMRs, did not include small area FMRs for Dallas, Texas. This notice provides the corrected Schedule B Addendum. No other changes are made by this notice. The public comment due date remains September 15, 2014.