83 FR 41056 - Establishment of Maximum Interest Rate

DEPARTMENT OF AGRICULTURE
Rural Housing Service

Federal Register Volume 83, Issue 160 (August 17, 2018)

Page Range		41056-41057
FR Document		2018-17764

The Rural Housing Service (RHS or Agency) seeks public comments on updating the provisions of the Single Family Housing Guaranteed Loan Program (SFHGLP), specifically regarding the maximum interest rate, its impact on loan making to potential SFHGLP borrowers, and possible changes to the interest rate cap. RHS is soliciting input regarding the maximum interest rate to help the Agency determine whether the interest rate cap should be modified in order to support the agency's mission to offer applicants, who are unable to secure the credit necessary for such housing from other sources under conventional credit terms, an opportunity to acquire new or existing housing for use as a primary residence; finance the repair and rehabilitation costs associated with the purchase of the home; and refinance an existing Section 502 loan to lower the interest rate. These opportunities are provided to applicants under terms and conditions which the applicant can reasonably be expected to fulfill.

Federal Register, Volume 83 Issue 160 (Friday, August 17, 2018)

[Federal Register Volume 83, Number 160 (Friday, August 17, 2018)]
[Notices]
[Pages 41056-41057]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17764]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Establishment of Maximum Interest Rate

AGENCY: Rural Housing Service, USDA.

ACTION: Request for information.

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SUMMARY: The Rural Housing Service (RHS or Agency) seeks public 
comments on updating the provisions of the Single Family Housing 
Guaranteed Loan Program (SFHGLP), specifically regarding the maximum 
interest rate, its impact on loan making to potential SFHGLP borrowers, 
and possible changes to the interest rate cap. RHS is soliciting input 
regarding the maximum interest rate to help the Agency determine 
whether the interest rate cap should be modified in order to support 
the agency's mission to offer applicants, who are unable to secure the 
credit necessary for such housing from other sources under conventional 
credit terms, an opportunity to acquire new or existing housing for use 
as a primary residence; finance the repair and rehabilitation costs 
associated with the purchase of the home; and refinance an existing 
Section 502 loan to lower the interest rate.
    These opportunities are provided to applicants under terms and 
conditions which the applicant can reasonably be expected to fulfill.

DATES: Written Comments: Interested parties must submit written 
comments on or before October 16, 2018.

ADDRESSES: Submit comments in either paper or electronic format by the 
following methods:
     Federal eRulemaking Portal at http://www.regulations.gov. 
Follow instructions for submitting comments.
     Postal Mail/Commercial Delivery: Please send your comments 
addressed to Kate Jensen, Finance and Loan Analyst, Single Family 
Housing Guaranteed Loan Program, USDA Rural Development, 1400 
Independence Avenue, STOP 0784, Room 2250, Washington, DC 20250-1522.

FOR FURTHER INFORMATION CONTACT: Kate Jensen, Finance and Loan Analyst, 
at [email protected] or (503) 894-2382.

SUPPLEMENTARY INFORMATION: 

Background

    RHS delivers programs authorized by the Housing Act of 1949, as 
amended (42 U.S.C. 1472 et seq.) (Housing Act). The preamble to the 
Housing Act declares that every American deserves a ``decent home and a 
suitable living environment.'' RHS guarantees a variety of housing 
loans for home purchases, repair, and rental housing development in 
rural areas. The SFHGLP provides low- and moderate-income borrowers 
access to mortgage credit by guaranteeing loans issued by agency-
approved private sector lenders. Loans may finance the full 
construction and acquisition cost of a property up to 100 percent of 
the appraised value. Mortgages have 30-year terms and fixed rates 
negotiated with the lender that cannot exceed an interest rate cap that 
is determined by the Agency. Financing may also be used to refinance 
existing USDA guaranteed or direct loans. The program maintains its 
neutral or slightly negative subsidy status through guarantee and 
annual loan fees.

Request for Comment

    Stakeholder input is vital to ensure that the maximum interest rate 
continues to support the agency's mission and not overly burden SFHGLP 
lenders and their customers. Currently, the maximum allowable interest 
rate is defined in Section 7.3.B of the program handbook (available at 
https://www.rd.usda.gov/files/3555-1chapter07.pdf) as the current 
Fannie Mae posted yield for 90-day delivery (Actual/Actual), plus one 
percent for 30-year fixed rate conventional loans, rounded up to the 
nearest one quarter of one percent. The Agency is considering whether 
to modify the maximum interest rate and would like stakeholder feedback 
on the issue.
    The following questions and discussion items are posed to guide 
stakeholder comments. Where possible, RHS requests that comments 
include specific suggestions regarding ways to improve existing 
programs and delivery mechanisms and eliminate or minimize the 
duplication of RHS's regulation and policies with work performed by 
other entities, including federal, state, and local agencies. RHS 
welcomes pertinent comments that are beyond the scope of these 
questions.
    1. Should the Agency continue with the requirement that the maximum 
allowable interest rate shall not exceed the current Federal National 
Mortgage Association posted yield for 90-day delivery (Actual/Actual) 
plus one percent for 30-year fixed rate conventional loans, rounded up 
to the nearest one quarter of one percent?
    2. Should the Agency consider indexing the maximum allowable 
interest rate to a source other than the Federal National Mortgage 
Association?
    3. Should a higher maximum allowable interest rate cap be 
established? If so, what maximum rate is recommended, and why?
    4. Does the current maximum interest rate create any barriers to 
loan making in eligible rural areas? If so, how and under what 
circumstances?
    5. What effect would increasing or eliminating the maximum interest 
rate have for loan originators and borrowers in underserved populations 
and rural communities?
    6. If the maximum allowable interest rate cap were to be increased 
or

[[Page 41057]]

eliminated, what protections exist to prevent consumers from being 
overcharged?
    7. If the maximum allowable interest rate is raised or removed, 
what steps should the Agency take to monitor lenders to ensure that 
borrowers are not overcharged?

Non-Discrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

    Dated: August 13, 2018.
Joel C. Baxley,
Administrator, Rural Housing Service.
[FR Doc. 2018-17764 Filed 8-16-18; 8:45 am]
BILLING CODE 3410-XV-P

Federal Register / Vol. 83, No. 160 / Friday, August 17, 2018 / Notices 41057

eliminated, what protections exist to COMMISSION ON CIVIL RIGHTS additional information may contact the
prevent consumers from being Eastern Regional Office at (202) 376–
overcharged? Agenda and Notice of Public Meeting 7533.
7. If the maximum allowable interest of the Delaware Advisory Committee Records and documents discussed
rate is raised or removed, what steps during the meeting will be available for
AGENCY: Commission on Civil Rights.
should the Agency take to monitor public viewing as they become available
lenders to ensure that borrowers are not ACTION:Announcement of monthly at http://facadatabase.gov/committee/
overcharged? planning meetings. meetings.aspx?cid=240; click the
Non-Discrimination Statement SUMMARY: Notice is hereby given, ‘‘Meeting Details’’ and ‘‘Documents’’
pursuant to the provisions of the rules links. Records generated from this
In accordance with Federal civil meeting may also be inspected and
rights law and U.S. Department of and regulations of the U.S. Commission
on Civil Rights (Commission), and the reproduced at the Eastern Regional
Agriculture (USDA) civil rights Office, as they become available, both
regulations and policies, the USDA, its Federal Advisory Committee Act
(FACA), that a planning meeting of the before and after the meetings. Persons
Agencies, offices, and employees, and interested in the work of this advisory
institutions participating in or Delaware State Advisory Committee to
the Commission will convene by committee are advised to go to the
administering USDA programs are Commission’s website, www.usccr.gov,
prohibited from discriminating based on conference call, on Monday, September
17, 2018 at 10:00 a.m. (EDT). The or to contact the Eastern Regional Office
race, color, national origin, religion, sex, at the above phone number, email or
gender identity (including gender purpose of the meeting is to discuss
preparation of the Committee’s report street address.
expression), sexual orientation,
disability, age, marital status, family/ on implicit bias and policing in Agenda
parental status, income derived from a communities of color in Delaware.
Monday, September 17, 2018
public assistance program, political DATES: Monday, September 17, 2018, at
at 10:00 a.m.
beliefs, or reprisal or retaliation for prior 10:00 a.m. (EDT).
civil rights activity, in any program or ADDRESSES: Public Call-In Information: I. Welcome and Introductions
activity conducted or funded by USDA Conference call number: 1–800–210– Rollcall
(not all bases apply to all programs). 9006 and conference call ID: 4124362. II. Planning Meeting
Remedies and complaint filing Discuss Project Report
FOR FURTHER INFORMATION CONTACT: Ivy
deadlines vary by program or incident. L. Davis, at ero@usccr.gov or by phone III. Other Business
Persons with disabilities who require at 202–376–7533. IV. Adjournment
alternative means of communication for Dated: August 13, 2018.
SUPPLEMENTARY INFORMATION: Interested
program information (e.g., Braille, large David Mussatt,
members of the public may listen to the
print, audiotape, American Sign Supervisory Chief, Regional Programs Unit.
discussion by calling the following toll-
Language, etc.) should contact the
free conference call number: 1–800– [FR Doc. 2018–17734 Filed 8–16–18; 8:45 am]
responsible Agency or USDA’s TARGET
210–9006 and conference call ID: BILLING CODE P
Center at (202) 720–2600 (voice and
4124362. Please be advised that before
TTY) or contact USDA through the
placing them into the conference call,
Federal Relay Service at (800) 877–8339. COMMISSION ON CIVIL RIGHTS
the conference call operator may ask
Additionally, program information may
callers to provide their names, their
be made available in languages other Notice of Public Meeting of the Virginia
organizational affiliations (if any), and
than English. Advisory Committee
email addresses (so that callers may be
To file a program discrimination
notified of future meetings). Callers can AGENCY: Commission on Civil Rights.
complaint, complete the USDA Program
expect to incur charges for calls they
Discrimination Complaint Form, AD– ACTION: Announcement of meeting.
initiate over wireless lines, and the
3027, found online at http://
Commission will not refund any SUMMARY: Notice is hereby given,
www.ascr.usda.gov/complaint_filing_
incurred charges. Callers will incur no pursuant to the provisions of the rules
cust.html and at any USDA office or
charge for calls they initiate over land- and regulations of the U.S. Commission
write a letter addressed to USDA and
line connections to the toll-free on Civil Rights (Commission), and the
provide in the letter all of the
telephone number herein. Federal Advisory Committee Act
information requested in the form. To
Persons with hearing impairments (FACA) that a meeting of the Virginia
request a copy of the complaint form,
may also follow the discussion by first Advisory Committee to the Commission
call (866) 632–9992. Submit your
calling the Federal Relay Service at will convene by conference call at 12:00
completed form or letter to USDA by:
(1) Mail: U.S. Department of 1–800–877–8339 and providing the p.m. (EST) on Wednesday, September
Agriculture, Office of the Assistant operator with the toll-free conference 19, 2018. The purpose of the meeting is
Secretary for Civil Rights, 1400 call number: 1–800–210–9006 and for Committee members to continue
Independence Avenue SW, Washington, conference call ID: 4124362. discussing plans for the in-person
DC 20250–9410; Members of the public are invited to briefing on hate crimes in VA—
(2) Fax: (202) 690–7442; or submit written comments; the incidences and responses.
(3) Email: program.intake@usda.gov. comments must be received in the
DATES: Wednesday, September 19, 2018,
USDA is an equal opportunity regional office approximately 30 days
amozie on DSK3GDR082PROD with NOTICES1

after each scheduled meeting. Written at 12:00 p.m. EST.
provider, employer, and lender.
comments may be mailed to the Eastern ADDRESSES: Public call-in information:
Dated: August 13, 2018. Regional Office, U.S. Commission on Conference call-in number: 1–800–474–
Joel C. Baxley, Civil Rights, 1331 Pennsylvania 8920 and conference call 8310490.
Administrator, Rural Housing Service. Avenue, Suite 1150, Washington, DC FOR FURTHER INFORMATION CONTACT: Ivy
[FR Doc. 2018–17764 Filed 8–16–18; 8:45 am] 20425, or emailed to Evelyn Bohor at Davis at ero@usccr.gov or by phone at
BILLING CODE 3410–XV–P ero@usccr.gov. Persons who desire 202–376–7533.

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Document Created: 2018-08-17 03:25:05
Document Modified: 2018-08-17 03:25:05

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		Notices
Action		Request for information.
Dates		Written Comments: Interested parties must submit written comments on or before October 16, 2018.
Contact		Kate Jensen, Finance and Loan Analyst, at [email protected] or (503) 894-2382.
FR Citation		83 FR 41056

83 FR 41056 - Establishment of Maximum Interest Rate

DEPARTMENT OF AGRICULTURERural Housing Service

Federal Register Volume 83, Issue 160 (August 17, 2018)

DEPARTMENT OF AGRICULTURE
Rural Housing Service