Source: https://regulations.justia.com/regulations/fedreg/2012/02/16/2012-3667.html
Timestamp: 2020-03-29 06:34:20
Document Index: 8056395

Matched Legal Cases: ['art 203', '§ 203', '§ 203', '§ 203', '§ 203', 'art 203', 'art 203', 'ART 203', 'art 203', '§ 203', 'art\n203']

Federal Housing Administration (FHA): Suspension of Section 238(c) Single-Family Mortgage Insurance in Military Impacted Areas, 9177-9178 [2012-3667] :: Department Of Housing And Urban Development :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Housing And Urban Development Federal Housing Administration (FHA): Suspension of Section 238(c) Single-Family Mortgage Insurance in Military Impacted Areas, 9177-9178 [2012-3667]
Federal Housing Administration (FHA): Suspension of Section 238(c) Single-Family Mortgage Insurance in Military Impacted Areas, 9177-9178 [2012-3667]
Download as PDF Federal Register / Vol. 77, No. 32 / Thursday, February 16, 2012 / Rules and Regulations AIRAC Date State City Airport FDC No. FDC Date 8–Mar–12 ..... OR Portland ................. Portland Intl ........................... 2/5031 1/24/12 8–Mar–12 ..... AZ Phoenix ................. Phoenix Sky Harbor Intl ........ 2/5642 1/27/12 [FR Doc. 2012–3376 Filed 2–15–12; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Part 203 [Docket No. FR–5461–F–02] RIN 2502–AJ01 Federal Housing Administration (FHA): Suspension of Section 238(c) SingleFamily Mortgage Insurance in Military Impacted Areas Office of the Assistant Secretary of Housing—Federal Housing Commissioner, HUD. ACTION: Final rule. AGENCY: On August 30, 2011, HUD published a proposed rule to suspend FHA’s mortgage insurance program for military impacted areas under section 238(c) of the National Housing Act. This single-family mortgage insurance program, established by regulation in 1977, has been significantly underutilized for the past several years. Additionally, these mortgage loans are insured under comparable terms and conditions as loans insured under HUD’s primary single-family mortgage insurance program under section 203(b) of the National Housing Act. Accordingly, those borrowers who would be served under section 238(c) of the National Housing Act are served equally well under the section 203(b) mortgage insurance program. The suspension of this mortgage insurance program is consistent with the President’s budget requests for Fiscal Years (FYs) 2011 and 2012. In this final rule, HUD is adopting the proposed rule without change. DATES: Effective Date: March 19, 2012. FOR FURTHER INFORMATION CONTACT: Karin Hill, 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 202–708–4308 (this is not a toll-free number). Persons with hearing or speech impairments may access this number via TTY by calling the Federal Relay Service at 1–800–877–8339. SUPPLEMENTARY INFORMATION: wreier-aviles on DSK5TPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 13:47 Feb 15, 2012 Jkt 226001 I. Background—The Proposed Rule On August 30, 2011, HUD published a proposed rule in the Federal Register (76 FR 53851) to suspend FHA’s mortgage insurance program for military impacted areas under section 238(c) of the National Housing Act (Act). Section 238(c) of the Act (12 U.S.C. 1715z–3(c)) was added by the Housing and Community Development Act of 1977 (Pub. L. 95–128) to authorize HUD to insure mortgages executed in connection with the construction, repair, rehabilitation, or purchase of property located near any installation of the Armed Forces of the United States in federally impacted areas in which conditions are such that one or more of the applicable insuring requirements under another single-family mortgage insurance program cannot be met. HUD’s current regulation implementing section 238(c) is codified at 24 CFR 203.43e. The regulation, promulgated in 1977, closely tracks the language of section 238(c) of the Act. Although established to ensure the availability of affordable housing in military impacted areas, the program has been minimally utilized by eligible borrowers. Section 238(c) mortgage insurance has been available in only six counties throughout the country, three in Georgia and three in New York. From January 1, 2005, to June 30, 2010, FHA insured 4,542 single-family home loans in these six counties, and only 2,309 were endorsed under section 238(c) of the Act. The 2,309 loans endorsed since 2005 represent only .05 percent of all FHA-insured loans endorsed during that span. The President’s budget requests for FYs 2011 and 2012 acknowledged the underutilization of the section 238(c) program and advised that HUD would take action to halt the availability of the program in light of the significant underutilization. The FY 2011 budget request found at http:// www.gpoaccess.gov/usbudget/fy11/ index.html states the following: The Budget assumes that HUD will administratively suspend the Section 238(c) program in 2011. The Section 238(c) program provides single family mortgage insurance similar to MMI for a small number of families in areas affected by military installations. The elimination of Section 238(c) will not negatively impact the availability of FHA insured financing in the six counties currently covered under this program. (See PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 9177 Subject ILS RWY 10R (SA CAT I), Amdt 34 RNAV (GPS) Y RWY 7R, Amdt 1 HUD Appendix to the Budget at page 620 at http://www.gpoaccess.gov/usbudget/fy11/ appendix.html).1 II. This Final Rule This final rule follows publication of the August 30, 2011, proposed rule. The proposed rule provided for a 60-day public comment period, which closed on October 31, 2011. HUD did not receive any public comments, and HUD is adopting as final the proposed August 30, 2011, rule without change. Consistent with the President’s budget request and Executive Order (EO) 13563, entitled ‘‘Improving Regulation and Regulatory Review,’’ signed by the President on January 18, 2011, and published on January 21, 2011, at 76 FR 3821, this final rule suspends the section 238(c) program and removes § 203.43e from HUD’s codified regulations. HUD’s removal of the regulations at § 203.43e is not inconsistent with suspension of the section 238(c) mortgage insurance program. If HUD subsequently determines that there is a demand for this program and that military families would be better served by this program, HUD can reactivate it on the basis of the statutory language and does not need a regulation to make insurance available under this program. If such a situation occurs, HUD would notify the public through Federal Register notice that the program has been activated, so that eligible borrowers would be able to inquire about the availability of insurance under this program from their lenders. HUD notes that the removal of the regulations at § 203.43e would have no impact on loans already endorsed for FHA insurance under the section 238(c) program. III. Findings and Certification 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 1 The President’s Budget for FY 2012, found at http://www.whitehouse.gov/omb/budget/Overview, contains identical language to the paragraph cited above; see the HUD Appendix to the FY 2012 Budget on page 591. E:\FR\FM\16FER1.SGM 16FER1 9178 Federal Register / Vol. 77, No. 32 / Thursday, February 16, 2012 / Rules and Regulations economic impact on a substantial number of small entities. The final rule would not modify or add any new regulatory burdens on FHA-approved mortgage lenders. Rather, the final rule would remove § 203.43e from HUD’s regulations, in conformity to HUD’s (and the Administration’s) decision to no longer exercise its authority to insure mortgages under section 238(c) of the Act. As more fully discussed above in the preamble to this rule, the mortgage insurance authority provided by section 238(c) of the Act has been minimally sought by eligible borrowers and consequently minimally utilized by lenders and other small entities participating in the FHA programs. Further, as noted above, section 238(c) mortgage insurance operated in a manner comparable to FHA’s mortgage insurance program under section 203(b) of the Act, HUD’s primary single-family mortgage insurance program. Accordingly, for the above reasons, the undersigned certifies that this rule will not have a significant economic impact on a substantial number of small entities. wreier-aviles on DSK5TPTVN1PROD with RULES 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 VerDate Mar<15>2010 13:47 Feb 15, 2012 Jkt 226001 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 will not have federalism 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 rule does not impose any federal mandates on any state, local, or tribal governments, or on the private sector, within the meaning of UMRA. Environmental Impact This final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule is categorically excluded from environmental review under the PO 00000 Frm 00016 Fmt 4700 Sfmt 9990 National Environmental Policy Act of 1969 (42 U.S.C. 4321). Catalogue of Federal Domestic Assistance The Catalogue of Federal Domestic Assistance Number for the principal FHA single-family mortgage insurance program is 14.117. List of Subjects in 24 CFR Part 203 Hawaiian Natives, Home improvement, Indians—lands, Loan programs—housing and community development, Mortgage insurance, Reporting and recordkeeping requirements, Solar energy. Accordingly, for the reasons discussed in the preamble, 24 CFR part 203 is amended as follows: PART 203—SINGLE FAMILY MORTGAGE INSURANCE 1. The authority citation for part 203 continues to read as follows: ■ Authority: 12 U.S.C. 1709, 1710, 1715b, 1715z–16, and 1715u; 42 U.S.C. 3535(d). ■ 2. Remove and reserve § 203.43e. Dated: February 10, 2012. Carol J. Galante, Acting Assistant Secretary for Housing— Federal Housing Commissioner. [FR Doc. 2012–3667 Filed 2–15–12; 8:45 am] BILLING CODE 4210–67–P E:\FR\FM\16FER1.SGM 16FER1
[Pages 9177-9178]
[FR Doc No: 2012-3667]
[Docket No. FR-5461-F-02]
Federal Housing Administration (FHA): Suspension of Section
238(c) Single-Family Mortgage Insurance in Military Impacted Areas
AGENCY: Office of the Assistant Secretary of Housing--Federal Housing
SUMMARY: On August 30, 2011, HUD published a proposed rule to suspend
FHA's mortgage insurance program for military impacted areas under
section 238(c) of the National Housing Act. This single-family mortgage
insurance program, established by regulation in 1977, has been
significantly underutilized for the past several years. Additionally,
these mortgage loans are insured under comparable terms and conditions
as loans insured under HUD's primary single-family mortgage insurance
program under section 203(b) of the National Housing Act. Accordingly,
those borrowers who would be served under section 238(c) of the
National Housing Act are served equally well under the section 203(b)
mortgage insurance program. The suspension of this mortgage insurance
program is consistent with the President's budget requests for Fiscal
Years (FYs) 2011 and 2012. In this final rule, HUD is adopting the
proposed rule without change.
and Urban Development, 451 7th Street SW., Room 9278, Washington, DC
20410-8000; telephone number 202-708-4308 (this is not a toll-free
number via TTY by calling the Federal Relay Service at 1-800-877-8339.
I. Background--The Proposed Rule
On August 30, 2011, HUD published a proposed rule in the Federal
Register (76 FR 53851) to suspend FHA's mortgage insurance program for
military impacted areas under section 238(c) of the National Housing
Act (Act). Section 238(c) of the Act (12 U.S.C. 1715z-3(c)) was added
by the Housing and Community Development Act of 1977 (Pub. L. 95-128)
to authorize HUD to insure mortgages executed in connection with the
construction, repair, rehabilitation, or purchase of property located
near any installation of the Armed Forces of the United States in
federally impacted areas in which conditions are such that one or more
of the applicable insuring requirements under another single-family
mortgage insurance program cannot be met.
HUD's current regulation implementing section 238(c) is codified at
24 CFR 203.43e. The regulation, promulgated in 1977, closely tracks the
language of section 238(c) of the Act. Although established to ensure
the availability of affordable housing in military impacted areas, the
program has been minimally utilized by eligible borrowers. Section
238(c) mortgage insurance has been available in only six counties
throughout the country, three in Georgia and three in New York. From
January 1, 2005, to June 30, 2010, FHA insured 4,542 single-family home
loans in these six counties, and only 2,309 were endorsed under section
238(c) of the Act. The 2,309 loans endorsed since 2005 represent only
.05 percent of all FHA-insured loans endorsed during that span.
The President's budget requests for FYs 2011 and 2012 acknowledged
the underutilization of the section 238(c) program and advised that HUD
would take action to halt the availability of the program in light of
the significant underutilization. The FY 2011 budget request found at
http://www.gpoaccess.gov/usbudget/fy11/index.html states the following:
The Budget assumes that HUD will administratively suspend the
Section 238(c) program in 2011. The Section 238(c) program provides
single family mortgage insurance similar to MMI for a small number
of families in areas affected by military installations. The
elimination of Section 238(c) will not negatively impact the
availability of FHA insured financing in the six counties currently
covered under this program. (See HUD Appendix to the Budget at page
620 at http://www.gpoaccess.gov/usbudget/fy11/appendix.html).\1\
\1\ The President's Budget for FY 2012, found at http://www.whitehouse.gov/omb/budget/Overview, contains identical language
to the paragraph cited above; see the HUD Appendix to the FY 2012
Budget on page 591.
This final rule follows publication of the August 30, 2011,
proposed rule. The proposed rule provided for a 60-day public comment
period, which closed on October 31, 2011. HUD did not receive any
public comments, and HUD is adopting as final the proposed August 30,
2011, rule without change.
Consistent with the President's budget request and Executive Order
(EO) 13563, entitled ``Improving Regulation and Regulatory Review,''
signed by the President on January 18, 2011, and published on January
21, 2011, at 76 FR 3821, this final rule suspends the section 238(c)
program and removes Sec.  203.43e from HUD's codified regulations.
HUD's removal of the regulations at Sec.  203.43e is not inconsistent
with suspension of the section 238(c) mortgage insurance program. If
HUD subsequently determines that there is a demand for this program and
that military families would be better served by this program, HUD can
reactivate it on the basis of the statutory language and does not need
a regulation to make insurance available under this program. If such a
situation occurs, HUD would notify the public through Federal Register
notice that the program has been activated, so that eligible borrowers
would be able to inquire about the availability of insurance under this
program from their lenders. HUD notes that the removal of the
regulations at Sec.  203.43e would have no impact on loans already
endorsed for FHA insurance under the section 238(c) program.
[[Page 9178]]
The final rule would not modify or add any new regulatory burdens
on FHA-approved mortgage lenders. Rather, the final rule would remove
Sec.  203.43e from HUD's regulations, in conformity to HUD's (and the
Administration's) decision to no longer exercise its authority to
insure mortgages under section 238(c) of the Act. As more fully
discussed above in the preamble to this rule, the mortgage insurance
authority provided by section 238(c) of the Act has been minimally
sought by eligible borrowers and consequently minimally utilized by
lenders and other small entities participating in the FHA programs.
Further, as noted above, section 238(c) mortgage insurance operated in
a manner comparable to FHA's mortgage insurance program under section
203(b) of the Act, HUD's primary single-family mortgage insurance
Accordingly, for the above reasons, the undersigned certifies that
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 rule does not impose any
federal mandates on any state, local, or tribal governments, or on the
private sector, within the meaning of UMRA.
This final rule does not direct, provide for assistance or loan and
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule
is categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
Accordingly, for the reasons discussed in the preamble, 24 CFR part
203 is amended as follows:
Authority:  12 U.S.C. 1709, 1710, 1715b, 1715z-16, and 1715u; 42
U.S.C. 3535(d).
2. Remove and reserve Sec.  203.43e.