2023-16738. Mortgage and Loan Insurance Programs Under the National Housing Act-Debenture Interest Rates
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Start Preamble
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.
Start Further InfoFOR FURTHER INFORMATION CONTACT:
Elizabeth Olazabal, Department of Housing and Urban Development, 451 Seventh Street SW, Room 5146, Washington, DC 20410–8000; telephone (202) 402–4608 (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.
End Further Info End Preamble Start Supplemental InformationSUPPLEMENTARY 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. Start Printed Page 52201 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).)
Start SignatureJulia Gordon,
Assistant Secretary for Housing, Federal Housing Commissioner.
End Supplemental InformationEffective 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 Start Printed Page 52202 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 Start Printed Page 52203 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 [FR Doc. 2023–16738 Filed 8–4–23; 8:45 am]
BILLING CODE 4210–67–P
Document Information
- Published:
- 08/07/2023
- Department:
- Housing and Urban Development Department
- Entry Type:
- Notice
- Action:
- Notice.
- Document Number:
- 2023-16738
- Pages:
- 52200-52203 (4 pages)
- Docket Numbers:
- Docket No. FR-6409-N-01
- PDF File:
- 2023-16738.pdf