81 FR 53095 - Federal Housing Administration (FHA): Strengthening the Home Equity Conversion Mortgage Program
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 81, Issue 155 (August 11, 2016)
Federal Register Volume 81, Issue 155 (August 11, 2016)
| Page Range | 53095-53097 | |
| FR Document | 2016-19255 |
[Federal Register Volume 81, Number 155 (Thursday, August 11, 2016)] [Proposed Rules] [Pages 53095-53097] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-19255] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 30 and 206 [Docket No. FR-5353-N-02] RIN 2502-AI79 Federal Housing Administration (FHA): Strengthening the Home Equity Conversion Mortgage Program AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD. ACTION: Supplemental notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: On May 19, 2016, HUD published in the Federal Register, a proposed rule that would codify several significant changes to FHA's Home Equity Conversion Mortgage program that were previously issued under the authority granted to HUD in the Housing and Economic Recovery Act of 2008 and the Reverse Mortgage Stabilization Act of 2013, and to make additional regulatory changes. The Home Equity Conversion Mortgage program is FHA's reverse mortgage program that enables seniors who have equity in their homes to withdraw a portion of the accumulated equity. The intent of the Home Equity Conversion Mortgage program is to ease the financial burden on elderly homeowners facing increased health, housing, and subsistence costs at a time of reduced income. This document opens the public comment period solely for the provision addressed in this document to address a suggested change offered during the public comment period for the proposed rule regarding the lender's option to file a claim when the loan balance reaches 98 percent of the maximum claim amount. DATES: Comment Due Date: September 12, 2016. 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 7th Street SW., Room 10276, Washington, DC 20410-0500. Communications must refer to the above docket number and title. There are two methods for submitting public comments. All submissions must refer to the above docket number and title. 1. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 20410-0001. [[Page 53096]] 2. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at www.regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically. Note: To receive consideration as public comments, comments must be submitted through one of the two methods specified above. Again, all submissions must refer to the docket number and title of the document. No Facsimile Comments. Facsimile (FAX) comments are not acceptable. Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available 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, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number via TTY by calling the toll-free Federal Relay Service at 800-877-8339. Copies of all comments submitted are available for inspection and downloading at www.regulations.gov. FOR FURTHER INFORMATION, CONTACT: Karin Hill, Senior Policy Advisor, Office of Single Family Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 9282, Washington, DC 20410; telephone number 202-402-3084 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number through TTY by calling the toll- free Federal Relay Service at 800-877- 8339. SUPPLEMENTARY INFORMATION: I. Background A. The HECM Program On May 19, 2016, at 81 FR 31769, HUD published a document that proposed to amend its regulations, at 24 CFR parts 30 and 206, that govern HUD's reverse mortgage program, called the Home Equity Conversion Mortgage (HECM) program. The HECM program allows eligible borrowers, 62 years of age or older, to convert the equity in their homes into liquid assets. The withdrawal of equity may take a variety of forms, as authorized by the National Housing Act (NHA) and selected by the borrower. The home, which serves as security for the FHA-insured mortgage, must be, and must continue to be, the borrower's principal residence during the life of the borrower. For adjustable interest rate HECMs, equity payments to the borrower may be in the form of monthly disbursements for life or a fixed term of years, disbursements from a line of credit advance or a combination of monthly disbursements and a line of credit. For fixed interest rate HECMs, equity payments to the borrower must be in the form of a single lump sum disbursement at closing. The maximum amount of equity in the home that is available to a borrower under a HECM loan is the ``principal limit'' that is calculated for that loan. The borrower retains ownership of the property and may sell the home at any time keeping any residual sale proceeds in excess of the outstanding loan balance. Until the mortgage is repaid, and regardless of whether or not additional disbursements under the mortgage are permissible, interest on the mortgage, mortgage insurance premiums, and servicing charges, where applicable, continue to accrue. The subject of this document regards the mortgagee's election of the assignment option as provided in Sec. 206.107(a). This section gives the mortgagee an option, before the mortgage is submitted for insurance endorsement, to select either: (1) The assignment option, which allows the mortgagee to assign the HECM to the Secretary if the mortgage balance is equal to or greater than 98 percent of the maximum claim amount; or (2) the shared premium option, which allows the mortgagee to retain a portion of the monthly mortgage insurance premiums (MIP) but does not allow the mortgagee to assign the mortgage unless the mortgagee fails to make payments and the Secretary demands assignment. Under the assignment option, the mortgagee may only assign the mortgage to the Secretary if the following are also true: (1) The mortgagee is current in making the required payments to the mortgagor; (2) the mortgagee is current in making the required MIP payments to the Secretary; (3) the mortgage is not due and payable; and (4) the mortgage is a first lien of record and title to the property securing the mortgage is good and marketable. B. The Proposed Rule and the Public Comment The May 19, 2016, proposed rule proposed to codify a number of changes that had been implemented through mortgagee letters under the authority of the Housing and Economic Recovery Act of 2008 (Pub. L. 110-289, approved July 30, 2008) (HERA) and the Reverse Mortgage Stabilization Act of 2013 (Pub. L. 113-29, approved August 9, 2013) (RMSA). The public comment period on the proposed rule closed on July 18, 2016. All public comments submitted to date can be found at https://www.regulations.gov/document?D=HUD-2016-0052-0001, and each public comment is assigned a number that begins with HUD-2016-0052. On June 23, 2016, a public commenter (HUD-2016-0052-0010) brought to HUD's attention a suggested change to the HECM program's policy that grants the mortgagee the option to assign a HECM loan to FHA if the outstanding loan balance is equal to or greater than 98 percent of the maximum claim amount. The commenter stated that, in some cases, a mortgagee may decline to file a claim in this scenario if the property value has risen rapidly and the loan has an above-market rate. The commentator concluded that lenders in this way have a ``put option'' and ``can choose to keep the best loans and make claims for the worst ones''. In order to address this issue, the commenter suggested that HUD require that an assignment claim be made when the loans reach 98 percent of the maximum claim amount. HUD seeks public comment on the feasibility of this proposal as HUD is considering whether to adopt it. II. Proposed Approach To Require Claims Be Made at 98 Percent of Maximum Claim Amount Through this document, HUD solicits public comment solely on the issue of requiring mortgagees to file a claim when the HECM loan reaches 98 percent of the maximum claim amount. If HUD were to implement this proposal, HUD would amend Sec. 206.107(a) to require the mortgagee to assign the mortgage to the Commissioner if the mortgage balance is equal to or greater than 98 percent of the maximum claim amount, or the mortgagor has requested a payment which exceeds the difference between the maximum claim amount and the mortgage balance. By proposing the change to the assignment option suggested by the public commenter, HUD would not alter the other proposed changes to [[Page 53097]] Sec. 206.107(a). The criteria for assigning a HECM loan to the Commissioner in Sec. 206.107(a) would remain, thereby still precluding the mortgagee from assigning the HECM loan if the loan or the mortgagee's servicing of the loan does not meet the criteria. Therefore, the proposal would require the mortgagee to assign the mortgage to the Commissioner at the given threshold unless the loan or the mortgagee's servicing of the loan does not meet the assignment criteria. HUD is soliciting public comment solely on this proposal for a period of 30 days. Dated: August 9, 2016. Genger Charles, General Deputy Assistant Secretary for Housing. [FR Doc. 2016-19255 Filed 8-10-16; 8:45 am] BILLING CODE 4210-67-P
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‘‘Environmental Impacts: Policies and within 2 miles each side of the 260° bearing DEPARTMENT OF HOUSING AND
Procedures’’ prior to any FAA final from the airport extending from the 7.1-mile URBAN DEVELOPMENT
regulatory action. radius to 11.7 miles west of the airport.
* * * * * 24 CFR Parts 30 and 206
List of Subjects in 14 CFR Part 71
AGL WI E5 Cable Union, WI [Amended] [Docket No. FR–5353–N–02]
Airspace, Incorporation by reference,
Navigation (air). Cable Union Airport, WI RIN 2502–AI79
(Lat. 46°11′42″ N., long. 91°14′54″ W.)
The Proposed Amendment Federal Housing Administration (FHA):
That airspace extending upward from 700
Accordingly, pursuant to the Strengthening the Home Equity
feet above the surface within a 6.9-mile
authority delegated to me, the Federal radius of Cable Union Airport.
Conversion Mortgage Program
Aviation Administration proposes to AGENCY: Office of the Assistant
* * * * *
amend 14 CFR part 71 as follows: Secretary for Housing—Federal Housing
AGL WI E5 Cumberland, WI [Amended] Commissioner, HUD.
PART 71—DESIGNATION OF CLASS A,
Cumberland Municipal Airport, WI ACTION: Supplemental notice of
B, C, D, AND E AIRSPACE AREAS; AIR (Lat. 45°30′22″ N., long. 91°58′51″ W.)
TRAFFIC SERVICE ROUTES; AND proposed rulemaking.
REPORTING POINTS That airspace extending upward from 700
feet above the surface within a 6.4-mile SUMMARY: On May 19, 2016, HUD
radius of Cumberland Municipal Airport, and published in the Federal Register, a
■ 1. The authority citation for 14 CFR
within 2 miles each side of the 091° bearing proposed rule that would codify several
part 71 continues to read as follows:
from the airport extending from the 6.4-mile significant changes to FHA’s Home
Authority: 49 U.S.C. 106(f), 106(g); 40103, Equity Conversion Mortgage program
radius to 10.2 miles east of the airport, and
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, that were previously issued under the
within 2 miles each side of the 270° bearing
1959–1963 Comp., p. 389.
from the airport extending from the 6.4-mile authority granted to HUD in the
§ 71.1 [Amended] radius to 10.2 miles west of the airport. Housing and Economic Recovery Act of
■ 2. The incorporation by reference in * * * * * 2008 and the Reverse Mortgage
14 CFR 71.1 of FAA Order 7400.9Z, Stabilization Act of 2013, and to make
AGL WI E5 Eagle River, WI [Amended] additional regulatory changes. The
Airspace Designations and Reporting
Points, dated August 6, 2015, and Eagle River Union Airport, WI Home Equity Conversion Mortgage
effective September 15, 2015, is (Lat. 45°55′56″ N., long. 89°16′06″ W.) program is FHA’s reverse mortgage
amended as follows: That airspace extending upward from 700 program that enables seniors who have
feet above the surface within a 6.5-mile equity in their homes to withdraw a
Paragraph 6002 Class E Airspace portion of the accumulated equity. The
Designated as Surface Areas. radius of Eagle River Union Airport, and
within 2 miles each side of the 225° bearing intent of the Home Equity Conversion
* * * * * from the airport extending from the 6.5-mile Mortgage program is to ease the
AGL WI E2 Wausau, WI [Removed] radius to 9.2 miles southwest of the airport. financial burden on elderly
homeowners facing increased health,
Paragraph 6005 Class E Airspace Areas * * * * *
housing, and subsistence costs at a time
Extending Upward From 700 Feet or More
AGL WI E5 Hayward, WI [Amended] of reduced income. This document
Above the Surface of the Earth.
Sawyer County Airport, WI opens the public comment period solely
* * * * * for the provision addressed in this
(Lat. 46°01′31″ N., long. 91°26′39″ W.)
AGL WI E5 Antigo, WI [Amended] That airspace extending upward from 700
document to address a suggested change
Langlade County Airport, WI feet above the surface within a 6.6-mile offered during the public comment
(Lat. 45°09′14″ N., long. 89°06′38″ W.) radius of Sawyer County Airport, and within period for the proposed rule regarding
That airspace extending upward from 700 2 miles each side of the 025° bearing from the the lender’s option to file a claim when
feet above the surface within a 6.5-mile airport extending from the 6.6-mile radius to the loan balance reaches 98 percent of
radius of Langlade County Airport. 8.5 miles northeast of the airport. the maximum claim amount.
AGL WI E5 Ashland, WI [Amended] DATES: Comment Due Date: September
* * * * *
12, 2016.
John F. Kennedy Memorial Airport, WI
AGL WI E5 Wausau, WI [Amended] ADDRESSES: Interested persons are
(Lat. 46°32′55″ N., long. 90°55′08″ W.)
That airspace extending upward from 700 Wausau Downtown Airport, WI invited to submit comments regarding
feet above the surface within a 7.0-mile (Lat. 44°55′35″ N., long. 89°37′37″ W.) this notice to the Regulations Division,
radius of John F. Kennedy Memorial Airport, That airspace extending upward from 700 Office of General Counsel, Department
and within 2.9 miles each side of the 201° feet above the surface within a 6.8-mile of Housing and Urban Development,
bearing from the airport extending from the radius of Wausau Downtown Airport. 451 7th Street SW., Room 10276,
7.0-mile radius to 8.2 miles southwest of the Washington, DC 20410–0500.
airport. Issued in Fort Worth, Texas, on July 29,
Communications must refer to the above
2016.
* * * * * docket number and title. There are two
Walter Tweedy, methods for submitting public
AGL WI E5 Black River Falls, WI
Acting Manager, Operations Support Group, comments. All submissions must refer
sradovich on DSK3GMQ082PROD with PROPOSALS
[Amended]
ATO Central Service Center. to the above docket number and title.
Black River Falls Area Airport
(Lat. 44°15′03″ N., long. 90°51′19″ W.)
[FR Doc. 2016–18773 Filed 8–10–16; 8:45 am] 1. Submission of Comments by Mail.
BILLING CODE 4910–13–P Comments may be submitted by mail to
That airspace extending upward from 700
feet above the surface within a 7.1-mile
the Regulations Division, Office of
radius of Black River Falls Area Airport, and General Counsel, Department of
within 2 miles each side of the 081° bearing Housing and Urban Development, 451
from the airport extending from the 7.1-mile 7th Street SW., Room 10276,
radius to 11.4 miles east of the airport, and Washington, DC 20410–0001.
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![Federal Register / Vol. 81, No. 155 / Thursday, August 11, 2016 / Proposed Rules 53097
§ 206.107(a). The criteria for assigning a DATES: Written comments must be final rule, and it will not take effect. We
HECM loan to the Commissioner in received by September 12, 2016. would address all public comments in
§ 206.107(a) would remain, thereby still ADDRESSES: Submit your comments, any subsequent final rule based on this
precluding the mortgagee from assigning identified by Docket ID No. EPA–HQ– proposed rule.
the HECM loan if the loan or the OAR–2016–0408, to the Federal We do not intend to institute a second
mortgagee’s servicing of the loan does eRulemaking Portal: http:// comment period on this action. Any
not meet the criteria. Therefore, the www.regulations.gov. Follow the online parties interested in commenting must
proposal would require the mortgagee to instructions for submitting comments. do so at this time. For further
assign the mortgage to the Once submitted, comments cannot be information, please see the information
Commissioner at the given threshold edited or withdrawn. The EPA may provided in the ADDRESSES section of
unless the loan or the mortgagee’s publish any comment received to its this document.
servicing of the loan does not meet the public docket. Do not submit
assignment criteria. II. Does this action apply to me?
electronically any information you
HUD is soliciting public comment consider to be Confidential Business This action applies to you if you are
solely on this proposal for a period of Information (CBI) or other information calculating the annual PM2.5 design
30 days. whose disclosure is restricted by statute. value for a site which does not have four
Dated: August 9, 2016. Multimedia submissions (audio, video, complete quarters of data for a specific
Genger Charles, etc.) must be accompanied by a written year and passes the minimum quarterly
General Deputy Assistant Secretary for comment. The written comment is value substitution test.
Housing. considered the official comment and III. Environmental Justice
[FR Doc. 2016–19255 Filed 8–10–16; 8:45 am] should include discussion of all points
you wish to make. The EPA will The EPA has determined that this
BILLING CODE 4210–67–P
generally not consider comments or proposed rule will not have
comment contents located outside of the disproportionately high and adverse
primary submission (e.g., on the Web, human health or environmental effects
ENVIRONMENTAL PROTECTION on minority or low-income populations
AGENCY Cloud, or other file sharing system). For
additional submission methods, the full because it does not affect the level of
40 CFR Part 50 EPA public comment policy, protection provided to human health or
information about CBI or multimedia the environment. This rule does not
[EPA–HQ–OAR–2016–0408; FRL–9950–46– submissions, and general guidance on relax the calculation of the annual PM2.5
OAR] NAAQS design values and, therefore,
making effective comments, please visit
RIN 2060–AS89 http://www2.epa.gov/dockets/ will not cause decreases in the design
commenting-epa-dockets. values used to designate and classify
Technical Correction to the National FOR FURTHER INFORMATION CONTACT: Mr. nonattainment areas and assess progress
Ambient Air Quality Standards for Brett Gantt, U.S. EPA, Office of Air towards meeting the NAAQS.
Particulate Matter Quality Planning and Standards, Air IV. Statutory and Executive Order
AGENCY: Environmental Protection Quality Assessment Division, Air Reviews
Agency (EPA). Quality Analysis Group (Mail Code:
C304–04), Research Triangle Park, NC For a complete discussion of the
ACTION: Proposed rule. administrative requirements applicable
27711; telephone number: (919) 541–
SUMMARY: The Environmental Protection 5274; fax number: (919) 541–3613; to this action, see the direct final rule in
Agency (EPA) is proposing revisions to email address: gantt.brett@epa.gov. the ‘‘Rules and Regulations’’ section of
correct an equation in an appendix in this Federal Register.
SUPPLEMENTARY INFORMATION:
the National Ambient Air Quality List of Subjects in 40 CFR Part 50
Standards (NAAQS) for Particle I. Why is the EPA issuing this proposed
Pollution. In the ‘‘Rules and rule? Air pollution control, Carbon
Regulations’’ section of the Federal This document proposes a revision in monoxide, Lead, Nitrogen dioxide,
Register, we are approving the appendix N to correct a scrivener’s error Ozone, Particulate matter, Sulfur oxides.
correction as a direct final rule without in an intermediate equation in the Dated: August 3, 2016.
a prior proposed rule. If we receive no calculation of the annual PM2.5 design Gina McCarthy,
adverse comment, we will not take value to properly account for cases Administrator.
further action on this proposed rule. where a site does not have four
Equation 2 describes an intermediate For the reasons stated in the
complete quarters of data in a specific
step in the calculation of the design preamble, the Environmental Protection
year and passes the minimum quarterly
value for the annual PM2.5 (particles Agency proposes to amend title 40,
value substitution test. We have
with an aerodynamic diameter less than chapter I of the Code of Federal
published a direct final rule approving
or equal to a nominal 2.5 micrometers) Regulations as follows:
the revisions to appendix N in the
NAAQS. This proposed action would ‘‘Rules and Regulations’’ section of this PART 50—NATIONAL PRIMARY AND
correct a scrivener’s error in one of the Federal Register because we view this SECONDARY AMBIENT AIR QUALITY
equations used to calculate an annual as a non-controversial action and
sradovich on DSK3GMQ082PROD with PROPOSALS
STANDARDS
mean PM2.5 concentration, to properly anticipate no adverse comment. We
account for cases where a site does not have explained our reasons for this ■ 1. The authority citation for Part 50
have four complete quarters of data and action in the preamble of the direct final continues to read as follows:
passes one of two substitution tests. rule.
Authority: 42 U.S.C. 7401 et seq.
This change accurately reflects the If we receive no adverse comment, we
intended calculation of the annual mean will not take further action on this ■ 2. In appendix N to part 50, in section
PM2.5 design value and is consistent proposed rule. If we receive adverse 4.4, Equation 2 is revised to read as
with the text elsewhere in the appendix. comment, we will withdraw the direct follows:
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Document Created: 2018-02-09 11:27:07
Document Modified: 2018-02-09 11:27:07
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Supplemental notice of proposed rulemaking. | |
| Dates | Comment Due Date: September 12, 2016. | |
| FR Citation | 81 FR 53095 | |
| RIN Number | 2502-AI79 | |
| CFR Citation | 24
CFR
206 24 CFR 30 |
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