[Federal Register Volume 71, Number 190 (Monday, October 2, 2006)]
[Notices]
[Pages 57994-57995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-8422]


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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