2023-16738. Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates

AGENCY:

Office of the Assistant Secretary for Housing, HUD.

ACTION:

Notice.

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 Administration under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under the Act during the 6-month period beginning July 1, 2023, is 3 1/2 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, 2023, is 3 7/8 percent.

FOR FURTHER INFORMATION CONTACT:

Elizabeth Olazabal, Department of Housing and Urban Development, 451 Seventh Street SW, Room 5146, Washington, DC 20410–8000; telephone [phone] (this is not a toll-free number). Individuals with speech or hearing impairments may access this number through TTY by calling the toll-free Federal Information Relay Service at (800) 877–8339.

SUPPLEMENTARY INFORMATION:

Section 224 of the National Housing Act (12 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. These regulatory provisions state 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, 2023, is 3 7/8 percent; and (2) has approved the establishment of the debenture interest rate by the Secretary of HUD at 3 7/8 percent for the 6-month period beginning July 1, 2023. 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 insurance commitment or endorsement date (as applicable) within the next 6 months of 2023).

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
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.
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	July 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	July 1, 1993.
7	July 1, 1993	Jan. 1, 1994.
6 5/8	Jan. 1, 1994	July 1, 1994.
7 3/4	July 1, 1994	Jan. 1, 1995.
8 3/8	Jan. 1, 1995	July 1, 1995.
7 1/4	July 1, 1995	Jan. 1, 1996.
6 1/2	Jan. 1, 1996	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.
5 1/2	Jan. 1, 1999	July 1, 1999.
6 1/8	July 1, 1999	Jan. 1, 2000.
6 1/2	Jan. 1, 2000	July 1, 2000.
6 1/2	July 1, 2000	Jan. 1, 2001.
6	Jan. 1, 2001	July 1, 2001.
5 7/8	July 1, 2001	Jan. 1, 2002.
5 1/4	Jan. 1, 2002	July 1, 2002.
5 3/4	July 1, 2002	Jan. 1, 2003.
5	Jan. 1, 2003	July 1, 2003.
4 1/2	July 1, 2003	Jan. 1, 2004.
5 1/8	Jan. 1, 2004	July 1, 2004.
5 1/2	July 1, 2004	Jan. 1, 2005.
4 7/8	Jan. 1, 2005	July 1, 2005.
4 1/2	July 1, 2005	Jan. 1, 2006.
4 7/8	Jan. 1, 2006	July 1, 2006.
5 3/8	July 1, 2006	Jan. 1, 2007.
4 3/4	Jan. 1, 2007	July 1, 2007.
5	July 1, 2007	Jan. 1, 2008.
4 1/2	Jan. 1, 2008	July 1, 2008.
4 5/8	July 1, 2008	Jan. 1, 2009.
4 1/8	Jan. 1, 2009	July 1, 2009.
4 1/8	July 1, 2009	Jan. 1, 2010.
4 1/4	Jan. 1, 2010	July 1, 2010.
4 1/8	July 1, 2010	Jan. 1, 2011.
3 7/8	Jan. 1, 2011	July 1, 2011.
4 1/8	July 1, 2011	Jan. 1, 2012.
2 7/8	Jan. 1, 2012	July 1, 2012.
2 3/4	July 1, 2012	Jan. 1, 2013.
2 1/2	Jan. 1, 2013	July 1, 2013.
2 7/8	July 1, 2013	Jan. 1, 2014.
3 5/8	Jan. 1, 2014	July 1, 2014.
3 1/4	July 1, 2014	Jan. 1, 2015.
3	Jan. 1, 2015	July 1, 2015.
2 7/8	July 1, 2015	Jan. 1, 2016.
2 7/8	Jan. 1, 2016	July 1, 2016.
2 1/2	July 1, 2016	Jan. 1, 2017.
2 3/4	Jan. 1, 2017	July 1, 2017.
2 7/8	July 1, 2017	Jan. 1, 2018.
2 3/4	Jan. 1, 2018	July 1, 2018.
3 1/8	July 1, 2018	Jan. 1, 2019.
3 3/8	Jan 1, 2019	July 1, 2019.
2 3/4	July 1, 2019	Jan 1, 2020.
2 1/4	Jan 1, 2020	July 1, 2020.
1 1/4	July 1, 2020	Jan. 1, 2021.
1 3/8	Jan 1, 2021	July 1, 2021.
2 1/4	July, 1 2021	Jan 1, 2022.
1 7/8	Jan 1, 2022	July 1, 2022.
3 1/4	July 1,2022	Jan 1, 2023.
4 1/4	Jan 1, 2023	July 1, 2023.
3 7/8	July 1, 2023	Jan 1, 2024.

Section 215 of Division G, Title II of Public Law 108–199, enacted January 23, 2004 (HUD's 2004 Appropriations Act) amended section 224 of the Act, to change the debenture interest rate for purposes of calculating certain insurance claim payments made in cash. Therefore, for all claims paid in cash on mortgages insured under section 203 or 234 of the National Housing Act and endorsed for insurance after January 23, 2004, the debenture interest rate will be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years, as found in Federal Reserve Statistical Release H–15. The Federal Housing Administration has codified this provision in HUD regulations at 24 CFR 203.405(b) and 24 CFR 203.479(b).

Similarly, section 520(a) of the National Housing Act (12 U.S.C. 1735d) provides for the payment of an insurance claim in cash on a mortgage or loan insured under any section of the National Housing Act before or after the enactment of the Housing and Urban Development Act of 1965. The amount of such payment shall be equivalent to the face amount of the debentures that would otherwise be issued, plus an amount equivalent to the interest which the debentures would have earned, computed to a date to be established pursuant to regulations issued by the Secretary. The implementing HUD regulations for multifamily insured mortgages at 24 CFR 207.259(e)(1) and (e)(6), when read together, provide that debenture interest on a multifamily insurance claim that is paid in cash is paid from the date of the loan default at the debenture rate in effect at the time of commitment or endorsement (or initial endorsement if there are two or more endorsements) of the loan, whichever is higher.

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” 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 221.255 and 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, 2023, is 3 1/2 percent. The subject matter of this notice falls within the categorical exemption from HUD's environmental clearance procedures set forth in 24 CFR 50.19(c)(6). For that reason, no environmental finding has been prepared for this notice.

(Authority: Sections 211, 221, 224, National Housing Act, 12 U.S.C. 1715b, 1715l, 1715o; section 7(d), Department of HUD Act, 42 U.S.C. 3535(d).)

Julia Gordon,

Assistant Secretary for Housing, Federal Housing Commissioner.

Effective interest rate	On or after	Prior to	221(g)(4)
3.875	July 1, 2023	January 1, 2024	3.500
4.250	January 1, 2023	July 1, 2023	3.875
3.250	July 1, 2022	January 1, 2023	2.875
1.875	January 1, 2022	July 1, 2022	1.500
2.250	July 1, 2021	January 1, 2022	1.500
1.375	January 1, 2021	July 1, 2021	0.750
1.250	July 1, 2020	January 1, 2021	0.625
2.250	January 1, 2020	July 1, 2020	1.750
2.750	July 1, 2019	January 1, 2020	2.375
3.375	January 1, 2019	July 1, 2019	3.125
3.125	July 1, 2018	January 1, 2019	3.000
2.750	January 1, 2018	July 1, 2018	2.375
2.875	July 1, 2017	January 1, 2018	2.250
2.750	January 1, 2017	July 1, 2017	2.125
2.500	July 1, 2016	January 1, 2017	1.750
2.875	January 1, 2016	July 1, 2016	2.250
2.875	July 1, 2015	January 1, 2016	2.125
3.000	January 1, 2015	July 1, 2015	2.250
3.250	July 1, 2014	January 1, 2015	2.375
3.625	January 1, 2014	July 1, 2014	2.500
2.875	July 1, 2013	January 1, 2014	1.750
2.500	January 1, 2013	July 1, 2013	1.375
2.750	July 1, 2012	January 1, 2013	1.625
2.875	January 1, 2012	July 1, 2012	1.875
4.125	July 1, 2011	January 1, 2012	3.000
3.875	January 1, 2011	July 1, 2011	2.500
4.125	July 1, 2010	January 1, 2011	3.375
4.250	January 1, 2010	July 1, 2010	3.375
4.125	July 1, 2009	January 1, 2010	3.375
4.125	January 1, 2009	July 1, 2009	3.750
4.625	July 1, 2008	January 1, 2009	3.875
4.500	January 1, 2008	July 1, 2008	4.125
5.000	July 1, 2007	January 1, 2008	4.750
4.750	January 1, 2007	July 1, 2007	4.875
5.375	July 1, 2006	January 1, 2007	5.750
4.875	January 1, 2006	July 1, 2006	5.125
4.500	July 1, 2005	January 1, 2006	4.875
4.875	January 1, 2005	July 1, 2005	5.000
5.500	July 1, 2004	January 1, 2005	5.375
5.125	January 1, 2004	July 1, 2004	5.250
4.500	July 1, 2003	January 1, 2004	5.000
5.000	January 1, 2003	July 1, 2003	5.750
5.750	July 1, 2002	January 1, 2003	6.625
5.250	January 1, 2002	July 1, 2002	6.375
5.875	July 1, 2001	January 1, 2002	6.750
6.000	January 1, 2001	July 1, 2001	7.125
500	July 1, 2000	January 1, 2001	7.500
6.500	January 1, 2000	July 1, 2000	7.125
6.125	July 1, 1999	January 1, 2000	6.625
5.500	January 1, 1999	July 1, 1999	6.000
6.125	July 1, 1998	January 1, 1999	6.250
6.375	January 1, 1998	July 1, 1998	6.250
7.125	July 1, 1997	January 1, 1998	6.375
6.750	January 1, 1997	July 1, 1997	6.375
7.250	July 1, 1996	January 1, 1997	6.875
6.500	January 1, 1996	July 1, 1996	6.000
7.250	July 1, 1995	January 1, 1996	6.750
8.375	January 1, 1995	July 1, 1995	8.000
7.750	July 1, 1994	January 1, 1995	7.250
6.625	January 1, 1994	July 1, 1994	5.750
7.000	July 1, 1993	January 1, 1994	6.000
7.750	January 1, 1993	July 1, 1993	6.875
8.000	July 1, 1992	January 1, 1993	7.500
8.000	January 1, 1992	July 1, 1992	7.500
8.500	July 1, 1991	January 1, 1992	8.125
8.750	January 1, 1991	July 1, 1991	8.250
9.000	July 1, 1990	January 1, 1991	8.625
8.125	January 1, 1990	July 1, 1990	7.750
9.000	July 1, 1989	January 1, 1990	8.625
9.250	January 1, 1989	July 1, 1989	8.625
9.375	July 1, 1988	January 1, 1989	8.625
9.125	January 1, 1988	July 1, 1988	8.375
9.000	July 1, 1987	January 1, 1988	8.250
8.000	January 1, 1987	July 1,1987	7.000
8.250	July 1, 1986	January 1, 1987	7.500
10.250	January 1, 1986	July 1, 1986	9.250
11.125	July 1, 1985	January 1, 1986	10.125
11.625	January 1, 1985	July 1, 1985	10.625
13.375	July 1, 1984	January 1, 1985	12.000
11.500	January 1, 1984	July 1, 1984	10.500
10.375	July 1, 1983	January 1, 1984	9.375
10.250	January 1, 1983	July 1, 1983	9.750
12.750	July 1, 1982	January 1, 1983	12.500
12.750	January 1, 1982	July 1, 1982	11.625
12.875	July 1, 1981	January 1, 1982	11.625
11.750	January 1, 1981	July 1, 1981	10.875
9.875	July 1, 1980	January 1, 1981	9.375
9.500	January 1, 1980	July 1, 1980