HUD Issues Final Rule on Standardizing Method of Payment for FHA Insurance Claims
A Rule by the
Publication Date:
Agency:
Entry Type: Rule
Action: Final rule.
Document Citation: 80 FR 51466
Page: 51466 -51469 (4 pages)
CFR: 24 CFR 203
24 CFR 207
24 CFR 220
24 CFR 221
24 CFR 232
24 CFR 236
24 CFR 241
Agency/Docket Number: Docket No. FR-5805-F-02
RIN: 2502-AJ26
Document Number: 2015-20827
Shorter URL: https://federalregister.gov/a/2015-20827
Action
Final Rule.
Summary
This final rule is a cost-savings measure to update HUD's regulations regarding the payment of FHA insurance claims in debentures. Section 520(a) of the National Housing Act grants the Secretary discretion to pay insurance claims in cash or debentures. Although some sections of HUD's regulations have provided mortgagees the option to elect payment of FHA insurance claims in debentures, HUD has not paid an FHA insurance claim in debentures under these regulations in approximately 5 years. This final rule amends applicable FHA regulations to bring consistency in determining the method of payment for FHA insurance claims. This final rule follows publication of the
DATES:
Effective Date:
FOR FURTHER INFORMATION CONTACT:
For information about:
SUPPLEMENTARY INFORMATION:
I. Background--the
On
The
II. This Final Rule
The public comment period for the proposed rule closed on
III. Findings and Certifications
Regulatory Review--Executive Order 13563
Executive Order 13563 (Improving Regulations and Regulatory Review) directs executive agencies to analyze regulations that are "outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned." Executive Order 13563 also directs that, where relevant, feasible, and consistent with regulatory objectives, and to the extent permitted by law, agencies are to identify and consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public.
Consistent with Executive Order 13563, the purposes of the reform to FHA's regulations regarding Secretarial discretion of the type of FHA insurance claim payment are to eliminate unnecessary spending and to bring consistency regarding the payment of insurance claims across FHA programs. As discussed in the preamble, the interagency agreement with Treasury costs HUD over
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C.
Environmental Impact
This final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate the following: real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction. Furthermore, the rule does not establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Executive Order 13132, Federalism
Executive Order 13132 (entitled "Federalism") prohibits an agency from publishing any rule that has federalism implications if the rule either (i) imposes substantial direct compliance costs on State and local governments and is not required by statute or (ii) preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive order. This final rule does not have federalism implications and does not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) (UMRA) establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and on the private sector. This final rule does not impose any Federal mandates on any State, local, or tribal governments or on the private sector, within the meaning of the UMRA.
Paperwork Reduction Act
This final rule reduces information collection requirements already submitted to the
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for
List of Subjects
24 CFR Part 203
Hawaiian Natives
Home improvement
Indians--lands
Loan programs--housing and community development; Mortgage insurance; Reporting and recordkeeping requirements; Solar energy
24 CFR Part 207
Manufactured homes
Mortgage insurance
Reporting and recordkeeping requirements
Solar energy
24 CFR Part 220
Home improvement
Loan programs--housing and community development
Mortgage insurance
Reporting and recordkeeping requirements
Urban renewal
24 CFR Part 221
Low and moderate income housing
Mortgage insurance
Reporting and recordkeeping requirements
24 CFR Part 232
Fire prevention
Health facilities
Loan programs--health
Loan programs--housing and community development
Mortgage insurance
Nursing homes
Reporting and recordkeeping requirements
24 CFR Part 236
Grant programs--housing and community development
Low and moderate income housing
Mortgage insurance
Rent subsidies
Reporting and recordkeeping requirements
24 CFR Part 241
Home improvement
Loan programs--housing and community development
Mortgage insurance
Reporting and recordkeeping requirements
Solar energy
Dated:
Principal Deputy, Assistant Secretary for Housing.
Approved:
Deputy Secretary.
Footnotes
1. 12 U.S.C. 1735d.
Editor's Note: Regulatory text for this document has been omitted. If you are interested in this material, send an e-mail to [email protected].
-1223479
HUD Issues Notice on Community Development Block Grant Disaster Recovery Funds
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News