[Federal Register Volume 69, Number 71 (Tuesday, April 13, 2004)]
[Proposed Rules]
[Pages 19746-19747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8341]



[[Page 19745]]

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Part V





Department of Housing and Urban Development





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24 CFR Part 320



Removal of Regulation Specifying Minimum Face Value of Ginnie Mae 
Securities; Proposed Rule

  Federal Register / Vol. 69, No. 71 / Tuesday, April 13, 2004 / 
Proposed Rules  

[[Page 19746]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 320

[Docket No. FR-4856-P-01]
RIN 2503-AA17


Removal of Regulation Specifying Minimum Face Value of Ginnie Mae 
Securities

AGENCY: The Government National Mortgage Association (Ginnie Mae), HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would remove the regulation that specifies 
the current minimum face amount of any security issued by the 
Government National Mortgage Association (Ginnie Mae). The proposed 
removal of the regulation would allow Ginnie Mae to offer alternative 
denominations of its securities.

DATES: Comment Due Date: June 14, 2004.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of the General Counsel, 
Room 10276, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-0500. Communications should refer to 
the above docket number and title. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at 
the above address.

FOR FURTHER INFORMATION CONTACT: Tom Weakland, Senior Vice President, 
Office of Program Operations, Government National Mortgage Association, 
Room 6216, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410; telephone (202) 708-2884 (this is 
not a toll-free number). Speech- or hearing-impaired individuals may 
access this number through TTY by calling the toll-free Federal 
Information Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: Ginnie Mae is a wholly owned corporation of 
the Federal government that increases the flow of credit for the 
housing market. Ginnie Mae guarantees securities that are issued by 
private lenders and backed by pools of mortgage loans insured by HUD or 
guaranteed by the Department of Veterans Affairs, or other government 
agencies. Ginnie Mae guarantees the timely payment of principal and 
interest on the securities.
    In its continual pursuit to ensure efficient secondary mortgage 
market operations, Ginnie Mae routinely evaluates and enhances its 
offerings and services to remain attractive to investors. To this end, 
Ginnie Mae would like to offer investors different denominations of 
Ginnie Mae guaranteed securities. Accordingly, this proposed rule would 
remove the existing regulation at 24 CFR 320.5(c), which provides, 
``The face amount of any security cannot be less than $25,000.'' After 
this rule becomes effective, the minimum face amount for various Ginnie 
Mae securities will be published in Ginnie Mae's Mortgage-Backed 
Securities Guide.

Findings and Certifications

Environmental Impact

    This rule would remove an existing regulation. The rule would not 
direct, provide for assistance or loan and mortgage insurance for, or 
otherwise govern or regulate, real property acquisition, disposition, 
leasing, rehabilitation, alteration, demolition, or new construction, 
or establish, revise, or provide for standards for construction or 
construction materials, manufactured housing, or occupancy. Therefore, 
in accordance with 24 CFR 50.19(c)(1), this rule is categorically 
excluded from the requirements of the National Environmental Policy Act 
(42 U.S.C. 4321 et seq.).

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this rule under 
Executive Order 12866 (entitled Regulatory Planning and Review). OMB 
determined that this rule is a ``significant regulatory action'' as 
defined in section 3(f) of the order (although not economically 
significant, as provided in section 3(f)(1) of the order). Any changes 
made to the rule subsequent to its submission to OMB are identified in 
the docket file, which is available for public inspection in the 
Regulations Division, Room 10276, Office of General Counsel, Department 
of Housing and Urban Development, 451 Seventh Street, SW., Washington, 
DC 20410-0500.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and on 
the private sector. This proposed rule would not impose a Federal 
mandate on any State, local, or tribal government, or on the private 
sector, within the meaning of the Unfunded Mandates Reform Act of 1995.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this rule before publication and by 
approving it certifies that this rule would not have a significant 
economic impact on a substantial number of small entities. There are no 
anti-competitive discriminatory aspects of the rule with regard to 
small entities, and there are no unusual procedures that would need to 
be complied with by small entities. The rule would remove an existing 
regulation. Although HUD has determined that this rule would not have a 
significant economic impact on a substantial number of small entities, 
HUD welcomes comments regarding any less burdensome alternative to this 
rule that will meet HUD's objectives as described in this preamble.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments and is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rule does not have federalism 
implications and does not impose substantial direct compliance costs on 
State and local governments and does not preempt State law within the 
meaning of the Executive Order.

List of Subjects in 24 CFR Part 320

    Mortgages, Securities.
    Accordingly, for the reasons described in the preamble, HUD 
proposes to amend 24 CFR part 320 as follows:

PART 320--GUARANTY OF MORTGAGE-BACKED SECURITIES

    1. The authority citation for part 320 continues to read as 
follows:

    Authority: 12 U.S.C. 1721(g) and 1723a(a), and 42 U.S.C. 
3535(d).
    2. Amend Sec.  320.5 by removing and reserving paragraph (c).


Sec.  320.5  Securities.

* * * * *
    (c) [Reserved]
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    Dated: March 18, 2004.
Ronald A. Rosenfeld,
President, Government National Mortgage Association.
[FR Doc. 04-8341 Filed 4-12-04; 8:45 am]
BILLING CODE 4210-66-P