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

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.

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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DATES: The proposed rule is withdrawn February 22, 1999.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. 99-4239 Filed 2-19-99; 8:45 am]

BILLING CODE 4210-27-P