Home Equity Conversion Mortgage Insurance Demonstration: Additional Streamlining; Correction and Delay of Effective Date for the Definition of ``Principal Limit'' in Sec. 206.3

On September 17, 1996 (61 FR 49030), the Department issued a final rule to changes proposed on May 10, 1996, to the Home Equity Conversion Mortgage (HECM) Insurance Demonstration. The final rule had an effective date of October 17, 1996, except that the amendment to the definition of ``principal limit'' in Sec. 206.3, had a delayed effective date of January 5, 1997. This document further delays the effective date of the definition of ``principal limit'' in Sec. 206.3 until May 1, 1997. In addition, Sec. 206.121(c) is corrected to remove language that should have been omitted which allowed HUD to change a monthly adjustable ARM to annual interest rate adjustments if assigned to HUD.