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Debenture Interest Payment Changes

HUD · hud-fha · Published 2006-06-22 · Effective 2006-07-24 · 71 FR 35992

Document

Document number
06-5577
Federal Register citation
71 FR 35992
CFR reference
24 CFR 203
Type
Rule
Action
Final rule.
Category
hud-fha
Agency
US Department of Housing and Urban Development
Publication date
2006-06-22
Effective date
2006-07-24
Docket
Docket No. FR-4945-F-01

Abstract

This final rule makes conforming revisions to the regulations under the single family mortgage insurance program with respect to the payment of interest at the debenture rate for mortgage insurance claims. The revisions implement a recent statutory amendment to the National Housing Act that provides for a mandatory change in the calculation of all debenture interest on mortgage insurance claims paid in cash. The statutory change mandates that, when paying insurance claims in cash, debenture interest rates for such claims must 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.

Source

Authoritative
Federal Register document
Machine
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