[Federal Register Volume 61, Number 161 (Monday, August 19, 1996)]
[Rules and Regulations]
[Pages 42786-42787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21031]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 203 and 221

[Docket No. FR-3899-C-02]
RIN 2502-AG55


Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner; Single Family Mortgage Insurance Premium; Correction to 
Final Rule

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Final rule; Correction.

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SUMMARY: On July 19, 1996 (61 FR 37798), the Department published in 
the

[[Page 42787]]

Federal Register, a final rule that finalized a proposed rule published 
by the Department on January 26, 1996, which proposed many benefits to 
the mortgage lenders that would reduce their servicing costs and the 
confusion generated by adjustments to the annual mortgage insurance 
premium (MIP) on cases not endorsed within the first six months after 
amortization. The purpose of this document is to remove a redundant 
sentence in the preamble of the rule and to make a clarifying change to 
Sec. 203.264.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: John L. Sahl, Acting Director, Office 
of Mortgage Insurance Accounting and Servicing, Room 2108, Department 
of Housing and Urban Development, 451 7th Street, S.W., Washington, DC 
20410, telephone (202) 708-1046. For telephone communication, contact 
Anne Baird-Bridges, Single Family Insurance Operations Division, at 
(202) 708-2438. Hearing or speech-impaired individuals may call HUD's 
TTY number (202) 708-4594. These are not toll-free numbers.

SUPPLEMENTARY INFORMATION: Accordingly, corrections are made to FR Doc. 
96-18354, a final rule on Single Family Mortgage Insurance Premium, 
published in the Federal Register on July 19, 1996 (61 FR 37798), as 
follows:
    1. On page 37798, in the first column, the preamble is corrected by 
removing the third sentence in paragraph 2 of the SUMMARY that reads, 
``A new system is being developed (and expected to be operational by 
Summer 1997) which would produce a monthly notice of premiums due, and 
the reconciliation will be made monthly by the lender when the premium 
is paid.''
    2. On page 37801, Sec. 203.264 is correctly revised to read as 
follows:


Sec. 203.264   Payment of periodic MIP.

    The mortgagee shall pay each MIP in twelve equal monthly 
installments. Each monthly installment shall be due and payable to the 
Commissioner no later than the tenth day of each month, beginning in 
the month in which the mortgagor is required to make the first monthly 
mortgage payment. This will be effective for amortization beginning on 
or after September 1, 1996.

    Dated: August 14, 1996.
Camille E. Acevedo,
Assistant General Counsel for Regulations.
[FR Doc. 96-21031 Filed 8-16-96; 8:45 am]
BILLING CODE 4210-27-P