[Federal Register: January 16, 2009 (Volume 74, Number 11)]
[Notices]
[Page 3094-3095]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja09-122]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5276-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.
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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, 2009, is 3\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, 2009, is 4\1/8\
percent. However, as a result of an amendment to section 224 of the
Act, if an insurance claim relating to a mortgage insured under
sections 203 or 234 of the Act and endorsed for insurance after January
23, 2004, is paid in cash, the debenture interest rate for purposes of
calculating a claim shall 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.
FOR FURTHER INFORMATION CONTACT: Yong Sun, Department of Housing and
Urban Development, 451 Seventh Street, SW., Room 5148, Washington, DC
20410-8000; telephone (202) 402-4778 (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 January 1, 2009, is 4\1/8\ percent; and
(2) has approved the establishment of the debenture interest rate by
the Secretary of HUD at 4\1/8\ percent for the 6-month period beginning
January 1, 2009. 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 2009.
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
[[Page 3095]]
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
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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).
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 January 1, 2009, is 3\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).
Dated: January 12, 2009.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E9-991 Filed 1-15-09; 8:45 am]
BILLING CODE 4210-67-P