[Federal Register Volume 74, Number 75 (Tuesday, April 21, 2009)]
[Pages 18247-18248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9121]

[[Page 18247]]



 [Docket No. FR-5319-N-01]

Federal Housing Administration (FHA) Title I Manufactured Home 
Loan Program:Notification of Availability of Program Reform 
Implementation and Request for Comments

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

ACTION: Notice.


SUMMARY: HUD has issued a 2009 Title I Letter 2009 to implement the 
reforms that were made to the Title I Manufactured Home Loan Program 
pursuant to the FHA Manufactured Housing Modernization Act. The letter 
is available at www.hud.gov/fha. Through this notice, HUD solicits 
comments on the implementation of these reforms as presented in the 
letter. HUD will take these comments into consideration in the 
development of a final rule that will follow the letter, and codify in 
regulation the reforms to the Title I Manufactured Home Loan Program.

DATES: Comment Due Date: June 22, 2009.

ADDRESSES: Interested persons are invited to submit comments regarding 
the 2009 title I Letter 2009 to the Regulations Division, Office of 
General Counsel, Department of Housing and Urban Development, 451 7th 
Street, SW., Room 10276, Washington, DC 20410-0500. Communications must 
refer to the above docket number and title. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street, SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note:  To receive consideration as public comments, comments 
must be submitted through one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an appointment to review the public comments must be 
scheduled in advance by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). Individuals with speech or 
hearing impairments may access this number via TTY by calling the 
Federal Information Relay Service at 800-877-8339. Copies of all 
comments submitted are available for inspection and downloading at 

FOR FURTHER INFORMATION CONTACT: For information contact, Margaret 
Burns, Director, Office of Single Family Program Development, Office of 
Housing, Department of Housing and Urban Development, 451 7th Street, 
SW., Room 9278, Washington, DC 20410-8000; telephone number 202-708-
2121. (This is not a toll-free number.) Persons with hearing or speech 
impairments may access this number through TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339.

    The FHA Manufactured Housing Loan Modernization Act of 2008 
(Subtitle B of Title II of the Housing and Economic Recovery Act of 
2008; Public Law 110-289, approved July 30, 2008) (Act), amended 
various provisions in section 2 of Title I of the National Housing Act 
(12 U.S.C. 1703 et seq.) relating to the Manufactured Home Loan Program 
for the purpose of providing: (1) Adequate funding for FHA insured 
manufactured housing for low and moderate income homebuyers, (2) 
modernizing the FHA Title I insurance program for manufactured housing 
loans to enhance participation by Ginnie Mae and the private lending 
markets, and (3) to adjust the low loan limits for Title I manufactured 
home loan insurance to reflect the increase in costs since such limits 
were last increased in 1992 and to index the limits to inflation.
    The Act revised the FHA Title I Manufactured Home Loan Program by: 
(1) Increasing the loan limits and establishing indexing for future 
adjustments based on inflation, (2) changing the insurance type from 
portfolio insurance to individual loan insurance, (3) providing that 
insurance on each individually Title I insured manufactured home loan 
be incontestable, except for fraud or misrepresentation, (4) changing 
the method for calculating the insurance premium by allowing for both 
an upfront insurance premium, not to exceed 2.25 percent, and an annual 
insurance premium to be paid during the term of the loan, not to exceed 
1.0 percent, (5) revising the underwriting criteria for loans and 
advances of credit in connection with the Title I manufactured home 
loan products as may be necessary to ensure that the program is 
financially sound, and (6) requiring a leasehold agreement if a 
manufactured home unit is to be situated in a manufactured home 
community. The term of the lease must not less than 3 years, renewable 
upon expiration of the original term by successive 1 year terms. The 
lessor must provide the lessee written notice of termination of the 
lease not less than 180 days prior to expiration of the current lease.
    A Title I Letter has been issued to implement these reforms. HUD 
requests comments from lenders and other interested parties with regard 
to the implementation of these reforms. All comments received will be 
reviewed and considered by HUD in its development of a rule amending 
the Title I Manufactured Home Loan Program regulations at 24 CFR part 
201. The rule will adopt the letter as issued or as may be revised 
pursuant to public comment or further consideration by HUD. Although 
FHA welcomes comments on all aspects of the Title I Letter, it is 
especially interested in receiving comments concerning upfront and 
periodic insurance charges, the methodology for indexing so as to be 
able to annually adjust the maximum loan limits, the underwriting 
criteria, and the potential economic costs and benefits of the reforms 
contained in the letter.
    Comments must be submitted by the deadline date established in the 
DATES section of this notice, and in accordance with the instructions 
contained in the ADDRESSES section of this notice.

[[Page 18248]]

    Dated: April 14, 2009.
Brian D. Montgomery,
 Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E9-9121 Filed 4-20-09; 8:45 am]