Mortgage and loan insurance programs: Single family mortgage insurance— Indian reservations; suspension of authority to insure mortgages; withdrawal,

[Federal Register: February 22, 1999 (Volume 64, Number 34)]

[Proposed Rules]

[Page 8532]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22fe99-18]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 203

[Docket No. FR-4251-N-02]

RIN 2502-AH00

Withdrawal of Proposed Rule on Suspension of Authority to Insure New FHA Single Family Mortgages on Indian Reservations Pursuant to Section 248 of the National Housing Act

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing Commissioner, HUD.

ACTION: Withdrawal of proposed rule.

SUMMARY: This notice withdraws a proposed rule that would have suspended the authority of the HUD Secretary to provide FHA insurance pursuant to section 248 of the National Housing Act for mortgage loans made for the financing of single family homes on Indian reservations.

DATES: The proposed rule is withdrawn February 22, 1999.

FOR FURTHER INFORMATION CONTACT: Morris Carter, Office of Insured Single Family Housing, Room 9162, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410. Telephone: (202) 708-3046. (This is not a toll-free number.) For hearing- and speech-impaired persons, this number may be accessed via TTY by calling the Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Background

On February 3, 1998, at 63 FR 5660, the Department published for public comment a proposed rule that would amend 24 CFR 203.43h to suspend the FHA Section 248 program for mortgage insurance on Indian reservations. The suspension would be in effect whenever authority is available for HUD to guarantee loans under the Section 184 Indian Housing loan guarantee program.

The public comment period on the proposed rule expired on April 6, 1998. The Department received 34 comments, including 3 comments that had been submitted before publication of the proposed rule. The commenters were primarily Indian tribes or Indian housing authorities. HUD also received comments from the Native American Indian Housing Council, two State agencies, one Federal agency, a Federal Home Loan Bank, two lenders, and two individuals.

Every commenter opposed the proposed rule and supported continuation of the Section 248 program without suspension. The commenters pointed out several advantages of the Section 248 program over the Section 184 program, including: Section 248 is a permanent program independent of the appropriations process; Section 248 has lower upfront closing costs because no upfront MIP is required for General Insurance Fund programs; and Section 184 cannot be used for refinancing.

Upon consideration of these public comments, HUD has determined to withdraw its proposed rule to suspend the Section 248 program.

Accordingly, the proposed rule to amend 24 CFR 203.43h, published on February 3, 1998, at 63 FR 5660, entitled, Suspension of Authority to Insure New FHA Single Family Mortgages on Indian Reservations Pursuant to Section 248 of the National Housing Act, is hereby withdrawn.

Dated: February 12, 1999. William C. Apgar, Assistant Secretary for Housing-Federal Housing Commissioner.

[FR Doc. 99-4239Filed2-19-99; 8:45 am]

BILLING CODE 4210-27-P