59150 Federal Register / Vol. 72, No. 201 / Thursday, October 18, 2007 / Notices 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–4679–N–13] 

Changes in Certain Multifamily 

Mortgage Insurance Premiums for 

2008 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, (HUD). 

ACTION: Notice. 

SUMMARY: In accordance with HUD 

regulations, this notice announces the 

changes in the mortgage insurance 

premiums (MIP) for the following 

Federal Housing Administration (FHA) 

multifamily mortgage insurance 

programs whose commitments will be 

issued or reissued in Fiscal Year (FY) 

2008. The new MIPs will be effective as 

of December 1, 2007. 

DATES: Comment Due Date: November 

19, 2007. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this Notice to the Regulations Division, 

Office of General Counsel, Department 

of Housing and Urban Development, 

451 Seventh Street, SW., Room 10276, 

Washington, DC 20410–0500. Interested 

persons also may submit comments 

electronically through the Federal 

eRulemaking Portal at: http:// 

www.regulations.gov. Commenters 

should follow the instructions provided 

on that site to submit comments 

electronically. HUD strongly encourages 

commenters to submit their comments 

electronically through http:// 

www.regulations.gov. The comments 

received through this portal are posted 

and can be easily viewed. 

Facsimile (FAX) comments are not 

acceptable. In all cases, communications 

must refer to the docket number and 

title. All comments and 

communications submitted will be 

available, without change, 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, please 

schedule an appointment to review the 

public comments by calling the 

Regulations Division at (202) 708–3055 

(this is not a toll-free number). Copies 

of electronically filed comments are also 

available for inspection and 

downloading at http:// 

www.regulations.gov. 

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 speechimpaired 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 at 24 CFR 

207.254 states that HUD will provide a 

30-day period for public comment on 

notices changing MIPs in multifamily 

insured housing programs. 

Pursuant to this 30-day comment 

procedure, this notice announces 

changes for FY 2008 in the MIP for 

programs authorized under the Act. 

These changes will be effective 

December 1, 2007. 

Credit Subsidy 

Appropriated positive credit subsidy 

is required for loan guarantee 

commitments under the three sections 

of the Act listed below: 

• Section 221(d)(3) for new 

construction or substantial 

rehabilitation (NC/SR). 

• Section 223(d) for operating loss 

loans for both apartments and health 

care facilities. 

• Section 241(a) for supplemental 

loans for additions or improvements for 

apartments only. 

The following programs will have 

MIP changes: 

• Section 221(d)(4) New 

Construction/Substantial Rehabilitation 

(NC/SR): The MIP is increased from 45 

basis points in FY2007 to 61 basis 

points in FY2008. 

• Section 207/223(f) refinance or 

purchase of apartment mortgages: The 

MIP is increased from 45 basis points in 

FY2007 to 61 basis points in FY2008. 

• Section 223(a)(7) refinance of FHA 

insured apartment mortgages: The MIP 

is increased from 45 basis points in 

FY2007 to 61 basis points in FY2008. 

The increase of 16 basis points in 

section 221(d)(4) new construction and 

substantial rehabilitation (NC/SR), 

section 207/223(f) refinancing or 

purchase of apartments, and section 

223(a)(7) refinancing of FHA insured 

apartment mortgages is to help cover 

administrative costs. 

For all projects with low-income 

housing tax credits (LIHTC) the sponsor 

is required under the Department of 

Housing and Urban Development 

Reform Act of 1989, Pub. L. 101–235 

(approved December 15, 1989) and 

HUD’s implementing instructions to 

submit a certification regarding 

governmental assistance with all 

mortgage insurance applications. 

The following MIPs are unchanged: 

• All sections of the Act where the 

mortgagor equity is produced from the 

proceeds of the sale of low-income 

housing tax credits (LIHTC): the MIP 

remains at 45 basis points. 

• Section 213 Cooperative Housing 

MIP remains at 50 basis points. 

• Section 221(d)(3) Nonprofit/ 

Cooperative MIP remains at 80 basis 

points. 

• Section 223(d) Operating Loss 

Loans for apartments or health care 

facilities MIP remains at 80 basis points. 

• Section 241(a) Improvements/ 

Additions for apartments MIP remains 

at 80 basis points. 

• Section 241(a) Improvements/ 

Additions for Health Care Facilities MIP 

remains at 57 basis points. 

• Section 207 Manufactured Home 

Parks (NC/SR) MIP remains at 50 basis 

points. 

• Section 232 NC/SR Health Care 

Facilities MIP remains at 57 basis 

points. 

• Section 220 Urban Renewal 

Housing MIP remains at 50 basis points. 

• Section 231 Elderly Housing MIP 

remains at 50 basis points. 

• Section 232/223(f) Refinance or 

Purchase of Health Care Facilities MIP 

remains at 50 basis points. 

• Section 223(a)(7) refinance of 

Health Care Facilities MIP remains at 50 

basis points. 

• Section 242 Hospitals MIP remains 

at 50 basis points. 

• Title XI—Group Practice MIP 

remains at 50 basis points. 

The First Year MIP for the section 

207/223(f) loans for apartments and 

232/223(f) loans for health care facilities 

remains at one percent. 

Premiums for risk-sharing 

applications under sections 542(b) and 

542(c) of the Housing and Community 

Development Act of 1992 MIP remain at 

50 basis points. Risk-sharing premiums 

are paid by a risk-sharing Housing 

Finance Agency depending on the 

percentage of risk assumed by it in 

accordance with regulations at 24 CFR 

266.604. The premium paid by Fannie 

Mae or Freddie Mac is 50% of 50 basis 

points. The 50 basis points apply to all 

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Federal Register / Vol. 72, No. 201 / Thursday, October 18, 2007 / Notices 59151 

risk-sharing loans whether or not they 

have LIHTC. 

If the mortgagor’s equity is produced 

from LIHTC for sections 221(d)(3) or 

241(a), a credit subsidy obligation will 

not be required. Only nonprofit and 

nonprofit cooperative mortgagors can 

obtain a 100 percent mortgage under 

section 221(d)(3) of the Act. The 

nonprofits cannot be under the control 

or influence of profit-motivated entities 

and continue to require HUD approval 

prior to issuance of the firm 

commitment. 

The mortgage insurance premiums to 

be in effect for FHA firm commitments 

issued or reissued in FY 2008 are shown 

in the table below: 

FISCAL YEAR 2008 MIP RATES MULTIFAMILY LOAN PROGRAM

Loan program Basis points 

207 Multifamily Housing NC/SR without LIHTC ............................................................................................................................ 50 

207 Multifamily Housing NC/SR with LIHTC ................................................................................................................................. 45 

207 Manufactured Home Parks without LIHTC ............................................................................................................................ 50 

207 Manufactured Home Parks with LIHTC ................................................................................................................................. 45 

221(d)(3) Nonprofit/Cooperative mortgagor without LIHTC .......................................................................................................... 80 

221(d)(3) Limited dividend with LIHTC .......................................................................................................................................... 45 

221(d)(4) NC/SR without LIHTC .................................................................................................................................................... 61 

221(d)(4) NC/SR with LIHTC ......................................................................................................................................................... 45 

232 NC/SR Health Care Facilities without LIHTC ......................................................................................................................... 57 

232 NC/SR—Assisted Living Facilities with LIHTC ...................................................................................................................... 45 

220 Urban Renewal Housing without LIHTC ................................................................................................................................ 50 

220 Urban Renewal Housing with LIHTC ..................................................................................................................................... 45 

213 Cooperative ............................................................................................................................................................................ 50 

231 Elderly Housing without LIHTC .............................................................................................................................................. 50 

231 Elderly Housing with LIHTC ................................................................................................................................................... 45 

207/223(f) Refinance or Purchase for Apartments without LIHTC ............................................................................................... *61 

207/223(f) Refinance or Purchase for Apartments with LIHTC .................................................................................................... *45 

232/223(f) Refinance for Health Care Facilities without LIHTC .................................................................................................... *50 

232/223(f) Refinance for Health Care Facilities with LIHTC ......................................................................................................... *45 

223(a)(7) Refinance of Apartments without LIHTC ....................................................................................................................... 61 

223(a)(7) Refinance of Apartments with LIHTC ............................................................................................................................ 45 

223(a)(7) Refinance of Health Care Facilities without LIHTC ....................................................................................................... 50 

223(a)(7) Refinance of Health Care Facilities with LIHTC ............................................................................................................ 45 

223d Operating loss loan for Apartments ..................................................................................................................................... 80 

223d Operating loss loan for Health Care Facilities ..................................................................................................................... 80 

241(a) Improvements/additions for Apartments/coop without LIHTC ........................................................................................... 80 

241(a) Improvements/additions for Apartments/coop with LIHTC ................................................................................................ 45 

241(a) Improvements/additions for Health Care Facilities without LIHTC .................................................................................... 57 

241(a) Improvements/additions for Health Care Facilities with LIHTC ......................................................................................... 45 

242 Hospitals ................................................................................................................................................................................. 50 

Title XI— Group Practice ............................................................................................................................................................... 50 

*The First Year MIP for the section 207/223(f) loans for apartments is one percent for the first year, as specified in section 24 CFR 

207.232b(a). The first year MIP for 232/223(f) health care facilities remains at one percent. 

Applicable Mortgage Insurance 

Premium Procedures 

The MIP regulations are found in 24 

CFR part 207. This notice is published 

in accordance with the procedures 

stated in 24 CFR 207.252, 207.252(a), 

and 207.254. 

Transition Guidelines 

A. General 

FHA will honor outstanding 

commitments issued before December 1, 

2007 and endorse the notes for 

insurance. 

B. Extension of Outstanding Firm 

Commitments 

FHA may extend or amend 

outstanding firm commitments issued 

prior to December 1, 2007 when the 

Hub/Program Center determines that the 

underwriting conclusions (rents, 

expenses, construction costs, mortgage 

amount and cash required to close) are 

still valid in accordance with Mortgagee 

Letter 03–21, ‘‘FHA Policies for 

Controlling Multifamily Firm 

Commitments and Credit Subsidy,’’

dated December 3, 2003. If the 

commitment has been extended 90 days 

from the original expiration date, the 

mortgagee must provide updated 

appraisal, market cost and mortgage 

credit information. If the loan is 

processed under Traditional 

Application Processing, the Hub/ 

program center must update its own 

conclusions (appraisal/market study, 

cost and mortgage credit underwriting). 

A new market study is required if the 

existing study is over one year old. 

C. Reopening of Expired Firm 

Commitments 

Reopening requests for expired firm 

commitments will be reprocessed by 

FHA field staff with updated appraisal, 

market cost and mortgage credit 

information using either traditional 

application processing (TAP) or 

multifamily accelerated processing 

(MAP) updated applications. The new 

MIP will apply to reopened 

commitments which are reissued on or 

after December 1, 2007. Reopening 

requests received within the 90 days of 

the expiration of the commitments are 

required to pay a reopening fee of $.50 

per thousand of the requested mortgage. 

After expiration of the 90-day reopening 

period, mortgagees are required to 

submit new applications with the $3 per 

thousand application fee. 

Dated: September 19, 2007. 

Brian D. Montgomery, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. 07–5149 Filed 10–15–07; 2:36 pm] 

BILLING CODE 4210–67–P 

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