[Federal Register Volume 63, Number 193 (Tuesday, October 6, 1998)]
[Notices]
[Pages 53689-53690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26751]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4400-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 of Change in Debenture Interest Rates.
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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 Commissioner 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
July 1, 1998, is 6\1/4\ 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 July 1, 1998, is 6\1/8\
percent.
FOR FURTHER INFORMATION CONTACT: James B. Mitchell, Department of
Housing and Urban Development, 451 7th Street, S.W., Room 6164,
Washington, DC 20410. Telephone 708-1220 extension 2612, or TTY (202)
708-4594 for hearing- or speech-impaired callers. These are not toll-
free numbers.
SUPPLEMENTARY INFORMATION: Section 224 of the National Housing Act (24
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. Each of these regulatory provisions states 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 July 1, 1998, is 6\1/8\ percent and (2)
has approved the establishment of the debenture interest rate by the
Secretary of HUD at 6\1/8\ percent for the 6-month period beginning
July 1, 1998. 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 an insurance
commitment or endorsement date (as applicable) within the last 6 months
of 1998.
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
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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.
[[Page 53690]]
8.................... Jan. 1, 1987........... July 1, 1987.
9.................... July 1, 1987........... Jan. 1, 1988.
9\1/8\............... Jan. 1, 1988........... July 1, 1988.
9\3/8\............... Jan. 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........... Jan. 1, 1993.
7.................... July 1, 1993........... Jan. 1, 1994.
6\5/8\............... Jan. 1, 1994........... Jan. 1, 1994.
7\3/4\............... July 1, 1994........... Jan. 1, 1995.
8\3/8\............... Jan. 1, 1995........... Jan. 1, 1995.
7\1/4\............... July 1, 1995........... Jan. 1, 1996.
6\1/2\............... July 1, 1995........... 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.
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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'' of interest 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
221.790.
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 July 1, 1998, is 6 1/4 percent.
HUD expects to publish its next notice of change in debenture
interest rates in July 1999.
The subject matter of this notice falls within the categorical
exemption from HUD's environmental clearance procedures set forth in 24
CFR 50.20(1). For that reason, no environmental finding has been
prepared for this notice.
(Sections 211, 221, 224, National Housing Act, 12 U.S.C. 1715b,
17151, 1715o; sec. 7(d), Department of HUD Act, 42 U.S.C. 3535(d))
Dated: September 30, 1998.
Ira G. Peppercorn,
General Deputy Assistant Secretary for Housing.
[FR Doc. 98-26751 Filed 10-5-98; 8:45 am]
BILLING CODE 4210-27-M