[Federal Register: October 2, 2006 (Volume 71, Number 190)]
[Notices]
[Page 57994-57995]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc06-98]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4679-N-12]
Multifamily Mortgage Insurance Premiums; Withdrawal of Proposal
to Increase MIPs for FY2007
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final notice.
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SUMMARY: HUD issued a notice on June 28, 2006, announcing for public
comment, proposed changes in the mortgage insurance premiums (MIP) for
Federal Housing Administration (FHA) multifamily mortgage insurance
programs whose commitments will be issued or reissued in Fiscal Year
(FY) 2007. The notice allowed 30 days for public comment. Approximately
359 comments were received by the comment due date, and the comments,
including a letter signed by 121 members of the U.S. House of
Representatives and 26 United States Senators, were overwhelmingly
opposed to the MIP increases proposed for a number of HUD's multifamily
housing mortgage insurance programs. Based on consideration of the
concerns raised in the comments, HUD has decided not to proceed with
implementation of the MIP increases for FY 2007. Instead, the FY 2006
MIPs, issued on August 30, 2005, will remain in effect for FY 2007.
However, FHA will continue to evaluate alternative pricing strategies
to maintain the integrity of the fund and achieve policy goals.
DATES: Effective Date: October 1, 2006.
[[Page 57995]]
FOR FURTHER INFORMATION CONTACT: Eric Stevenson, Director, Policy
Division, Office of Multifamily Development, Department of Housing and
Urban Development, 451 Seventh Street, SW., Washington, DC 20410-8000,
Telephone: (202) 708-1142 (this is not a toll-free number). Hearing- or
speech-impaired individuals may access these numbers through TTY by
calling the Federal Information Relay Service at (800) 877-8339 (this
is a toll-free number).
SUPPLEMENTARY INFORMATION:
Introduction
HUD's regulations at 24 CFR 207.252, 207.252a and 207.254 provide
that instead of setting the MIP at one specific rate for all programs,
the Secretary is permitted to change an MIP program by program within
the full range of HUD's statutory authority of one fourth of one
percent to one percent of the outstanding mortgage principal per annum
through a notice, as provided in section 203(c)(1) of the National
Housing Act (the Act) (12 U.S.C. 1709(c)(1)). The regulation states
that HUD will provide a 30-day period for public comment on notices
changing MIPs in multifamily insured housing programs.
Public Comments
The public comment period for the notice of proposed MIP changes
for FY2006, published on June 28, 2006 (71 FR 36968) closed on July 28,
2006. By the close of the public comment period, approximately 359
public comments were received by the Department, of which the majority
were in the nature of a form letter. In addition to the comments
submitted by form letters, several organizations submitted comments,
and 121 members of the U.S. House of Representatives and 26 U.S.
Senators signed a comment letter opposing the increase in MIPs for
FY2007. In addition to the opposition by Congressional members,
virtually, all of the public comments were opposed to the MIP increases
in a number multifamily housing programs, citing a variety of problems
that could occur within individual programs and raising questions about
HUD's cost justification for the increases.
FY 2007 Mortgage Insurance Premiums
The Department has therefore decided that the FY 2007 MIPs will be
the same as the FY2006 MIPs. The FY 2006 MIPs are published on August
30, 2005, at 70 FR 51539 and remain in effect.
Dated: September 27, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 06-8422 Filed 9-29-06; 8:45 am]
BILLING CODE 4210-67-P