51596 Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Rules and Regulations 

[FR Doc. E8–20443 Filed 9–3–08; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 206 

[Docket No. FR–5129–F–02] 

RIN 2502–AI49 

Home Equity Conversion Mortgages 

(HECMs): Determination of Maximum 

Claim Amount; and Eligibility for 

Discounted Mortgage Insurance 

Premium for Certain Refinanced HECM 

Loans 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Final rule. 

SUMMARY: This final rule adopts, 

without change, an interim rule that 

made two technical changes to HUD’s 

Home Equity Conversion Mortgage 

(HECM) program. First, the interim rule 

extended the date for calculating the 

maximum claim amount in the HECM 

program from the date of the 

underwriter’s receipt of the appraisal 

report to the date of closing. This 

change provides a more easily verifiable 

and more easily identifiable date. 

Second, the interim rule corrected an 

unintended consequence that results in 

a situation where HECM loans that are 

not in default but have been assigned 

pursuant to regulatory provisions, and 

remain in effect, are not eligible to be 

refinanced with a discounted initial 

mortgage insurance premium (MIP). The 

interim rule permitted such HECM 

loans to be eligible for the discounted 

initial MIP upon refinancing, in 

accordance with the purpose of the 

HECM program, which is to improve the 

financial situation of elderly 

homeowners. HUD received one public 

comment in response to a solicitation of 

comments on the interim rule, which 

was supportive of the interim rule. 

DATES: Effective Date: October 6, 2008. 

FOR FURTHER INFORMATION CONTACT: 

James Beavers, Deputy Director, Single 

Family Program Development, Office of 

Single Family Housing, Department of 

Housing and Urban Development, 451 

Seventh Street, SW., 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 tollfree Federal Information Relay Service 

at 1–800–877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The statutory and regulatory 

background to this rule is fully 

discussed in the preamble to the January 

8, 2008, interim rule at 73 FR 1434–

1435. HUD’s Home Equity Conversion 

Mortgage (HECM) statute is at section 

255 of the National Housing Act, 12 

U.S.C. 1715z–20. 

The January 2008 interim rule revised 

the point in time at which the appraised 

value of the property and the maximum 

dollar amount for an area under 12 

U.S.C. 1709(b)(2) are compared to 

determine the maximum claim amount. 

The definition of ‘‘maximum claim 

amount’’ currently codified in HUD’s 

regulations in 24 CFR 206.3 provides 

that both of these values ‘‘must be as of 

the date the Direct Endorsement Lender 

or Lender Insurance Underwriter 

receives the appraisal report.’’ For 

reasons described in the January 8, 

2008, interim rule, however, the date is 

changed to the date of loan closing. 

The interim rule also addressed an 

issue in the HECM program in which 

refinanced HECM notes assigned to 

HUD under assignment provisions at 

§ 206.107(a)(1) (election of assignment 

or shared premium option) and 

§ 206.121(b) (assignment to HUD when 

the mortgagee is unable or unwilling to 

make payments to mortgagor), but not in 

default, could not be insured at the 

reduced initial mortgage insurance 

premium (MIP) rates applicable to 

refinanced HECM loans. The interim 

rule clarified that refinanced HECM 

loans in these categories are also eligible 

for mortgage insurance at the reduced 

rate. 

II. This Final Rule 

This final rule adopts the interim rule 

without change. The following provides 

a summary of the regulatory 

amendments made by the interim rule, 

and adopted without change by the final 

rule. 

• The interim rule removed the 

second sentence of 24 CFR 206.3, and 

revised the first sentence to read: 

Maximum claim amount means the lesser 

of the appraised value of the property, as 

determined by the appraisal used in 

underwriting the loan, or the maximum 

dollar amount for an area established by the 

Secretary for a one-family residence under 

section 203(b)(2) of the National Housing Act 

(as adjusted where applicable under section 

214 of the National Housing Act) as of the 

date of loan closing. 

• The interim rule revised the last 

sentence of § 206.53(a) to remove the 

term ‘‘presently’’ and clarify that the 

refinancing provisions apply to 

‘‘existing’’ HECM loans, including those 

assigned under §§ 206.107(a)(1) and 

206.121(b). 

III. Discussion of Public Comments 

The public comment period on the 

January 8, 2008, interim rule closed on 

March 10, 2008. HUD received one 

comment, which supported the change 

made by the rule, and urged HUD to 

make other changes to the program 

regulations that would especially assist 

elderly minority homeowners. With no 

other issues for consideration at the 

final rule stage, HUD is adopting the 

interim rule without change. 

IV. Findings and Certifications 

Environmental Impact 

The final rule involves external 

administrative or fiscal requirements or 

procedures that are related to loan limits 

and rate or cost determinations and that 

do not constitute a development 

decision affecting the physical 

condition of specific project areas or 

building sites. Accordingly, under 24 

CFR 50.19(c)(6), this rule is categorically 

excluded from environmental review 

under the National Environmental 

Policy Act of 1969 (42 U.S.C. 4321 et 

seq.). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. This final rule 

would not have a significant impact on 

entities, because the establishment of a 

date of maximum claim amount is an 

automated process and merely changing 

the date as of which the calculation is 

made imposes no additional burden on 

any entity. Allowing for discounted 

MIPs for refinancings provides a benefit 

to borrowers and presents no impact on 

any business entities. 

Accordingly, the undersigned certifies 

that this rule will not have a significant 

economic impact on a substantial 

number of small entities. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either imposes 

substantial direct compliance costs on 

state and local governments and is not 

required by statute, or the rule preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. This 

rule would not have federalism 


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Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Rules and Regulations 51597 

implications and would not impose 

substantial direct compliance costs on 

state and local governments or preempt 

state law within the meaning of the 

Executive Order. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531–

1538) (UMRA) establishes requirements 

for federal agencies to assess the effects 

of their regulatory actions on state, 

local, and tribal governments, and on 

the private sector. This final rule will 

not impose any federal mandates on any 

state, local, or tribal governments, or on 

the private sector, within the meaning of 

UMRA. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance (CFDA) program number is 

14.183. 

List of Subjects in 24 CFR Part 206 

Aged, Condominiums, Loan 

programs—housing and community 

development, Mortgage insurance, 

Reporting and recordkeeping 

requirements. 

PART 206—HOME EQUITY 

CONVERSION MORTGAGE 

INSURANCE 

■ Accordingly, the interim rule 

amending 24 CFR part 206, which was 

published at 73 FR 1434 on January 8, 

2008, is adopted as a final rule without 

change. 

Dated: August 22, 2008. 

Brian D. Montgomery, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. E8–20471 Filed 9–3–08; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2008–0843] 

RIN 1625–AA00 

Safety Zone: Wantagh Parkway 2 

Bridge over the Goose Creek Channel, 

Town of Hempstead, NY 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone on 

the navigable waters of Goose Creek 

Channel surrounding the Wantagh 

Parkway 2 Bridge located in the Town 

of Hempstead, New York. This safety 

zone is necessary to protect vessels 

transiting in the area from hazards 

imposed by construction barges and 

equipment. Entry into this zone is 

prohibited unless authorized by the 

Captain of the Port, Long Island Sound, 

New Haven, CT. 

DATES: This rule will be effective from 

12:01 a.m. on September 2, 2008 until 

11:59 p.m on December 31, 2008. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket USCG–2008–

0843 and are available online at 

www.regulations.gov. They are also 

available for inspection or copying at 

two locations: the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays, 

USCG Sector Long Island Sound, 120 

Woodward Ave., New Haven, CT 06512 

between 9 a.m. and 3 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

rule, call LT Douglas Miller, USCG 

Sector Long Island Sound, Chief 

Waterways Management at 203–468–

4569. If you have questions on viewing 

the docket, call Renee V. Wright, 

Program Manager, Docket Operations, 

telephone 202–366–9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

The Coast Guard is issuing this 

temporary final rule without prior 

notice and opportunity to comment 

pursuant to authority under section 4(a) 

of the Administrative Procedure Act 

(APA) (5 U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because 

unforeseen delays in the construction 

and removal of the Wantagh 3 Bridge 

forced the original construction dates 

for the Wantagh 2 Bridge to be modified 

which in turn makes the publication of 

a notice of proposed rulemaking and 

associated comment period impractical; 

additional repair and replacement work 

are needed to ensure the continued safe 

operation of the bridge. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective less than 30 

days after publication in the Federal 

Register. A delay is not in the public 

interest as this safety zone is necessary 

to allow for completion of this bridge 

construction project. 

Background and Purpose 

Currently, the New York Department 

of Transportation is modifying the 

existing bascule and flanking spans of 

the Wantagh 2 Bridge located over the 

Goose Creek Channel in the Town of 

Hempstead, NY. These modifications 

are needed to ensure the continued safe 

operation of the bridge. To complete the 

modifications on the bridge, barges will 

need to block the waterway during the 

course of the project. To ensure the 

continued safety of the boating 

community, the Coast Guard is 

establishing a safety zone in all waters 

of Goose Creek Channel within 100- 

yards of the Wantagh Parkway Number 

2 Bridge. This safety zone is necessary 

to protect the safety of the boating 

community who wish to utilize the 

Goose Creek channel. Vessels may 

utilize the Sloop Channel as an 

alternative route to using the Goose 

Creek Channel, adding minimal 

additional transit time. Marine traffic 

may also transit safely outside of the 

safety zone during the effective dates of 

the safety zone, allowing navigation in 

the Goose Creek Channel, except the 

portion delineated by this rule. 

Discussion of Rule 

This regulation establishes a 

temporary safety zone on the Goose 

Creek Channel within 100-yards to 

either side of the Wantagh 2 Bridge. 

This action is intended to prohibit 

vessel traffic in a portion of the Goose 

Creek Channel within 100 yards of the 

Wantagh 2 Bridge in the Town of 

Hempstead, NY and to provide for the 

safety of the boating community due to 

the hazards posed by construction 

equipment located in the waterway 

during the modification of the existing 

span. 

The effective period of this safety 

zone will be from 12:01 a.m. September 

2, 2008 to 11:59 p.m. on December 31, 

2008. Marine traffic may continue to 

transit safely outside of the safety zone 

during the effective dates of the safety 

zone, allowing navigation in the Goose 

Creek Channel, except the portion 

delineated by this rule. Entry into this 

zone is prohibited unless authorized by 

the Captain of the Port Long Island 

Sound. 

Any violation of the safety zone 

described herein is punishable by, 


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