This notice
announces changes in the interest rates to be paid on debentures issued with respect
to a loan or mortgage insured by the Federal Housing Commissioner under the provisions
of the National Housing Act (the Act). The interest rate for debentures issued
under Section 221(g)(4) of the Act during the 6-month period beginning July 1,
2004, is 5 3/8 percent. The interest rate for debentures issued under any other
provision of the Act is the rate in effect on the date that the commitment to
insure the loan or mortgage was issued, or the date that the loan or mortgage
was endorsed (or initially endorsed if there are two or more endorsements) for
insurance, whichever rate is higher. The interest rate for debentures issued under
these other provisions with respect to a loan or mortgage committed or endorsed
during the 6-month period beginning July 1, 2004, is 5 1/2 percent. However, as
a result of a recent amendment to section 224 of the Act, if an insurance claim
relating to a mortgage insured under sections 203 or 234 of the Act and endorsed
for insurance after January 23, 2004 is paid in cash, the debenture interest rate
for purposes of calculating a claim shall be the monthly average yield, for the
month in which the default on the mortgage occurred, on United States Treasury
Securities adjusted to a constant maturity of 10 years. The yields can be found
in Federal Reserve
Statistical Release H-15. The Federal Housing Administration is in the process
of making conforming amendments to applicable regulations to fully implement this
recent change to section 224 of the Act. The Department
will continue to publish semi-annually the debenture interest rate for the next
six-month period in the Federal Register. Concurrently with the publication in
the Federal Register, the Department will update the below list of debenture interest
rates. For your convenience, here is a listing from 1980 to date. Debenture interest
rates in effect prior to 1980 are available in the FHA Single Family Insurance
Claims Handbook 4330.4, Revision 1, Appendix
4. The table below is also available as an Excel spreadsheet, Debenture
Rate Table.
Effective
Interest rate | on
or after | Prior
to | 221(g)(4) |
5.500 | July
1, 2004 | Jan
1, 2005 | 5.375 |
5.125 | Jan
1, 2004 | July
1, 2004 | 5.250 |
4.500 | July
1, 2003 | Jan
1, 2004 | 5.000 |
5.000 | Jan
1, 2003 | July
1, 2003 | 5.750 |
5.750 |
July 1,
2002 | Jan
1, 2003 | 6.625 |
5.250 |
Jan 1,
2002 | July
1, 2002 | 6.375 |
5.875 |
July 1,
2001 | Jan
1, 2002 | 6.750 |
6.000 |
Jan 1,
2001 | July
1, 2001 | 7.125 |
6
1/2 | July
1, 2000 | Jan
1, 2001 | 7.500 |
6
1/2 | Jan
1, 2000 | July
1, 2000 | 7.125 |
6
1/8 | July
1, 1999 | Jan
1, 2000 | 6.625 |
5
1/2 | Jan
1, 1999 | July
1, 1999 | 6.000 |
6
1/8 | July
1, 1998 | Jan
1, 1999 | 6.250 |
6
3/8 | Jan
1, 1998 | July
1, 1998 | 6.250 |
7
1/8 | July
1, 1997 | Jan
1, 1998 | 6.375 |
6
3/4 | Jan
1, 1997 | July
1, 1997 | 6.375 |
7
1/4 | July
1, 1996 | Jan
1, 1997 | 6.875 |
6
1/2 | Jan
1, 1996 | July
1, 1996 | 6.000 |
7
1/4 | July
1, 1995 | Jan
1, 1996 | 6.750 |
8
3/8 | Jan
1, 1995 | July
1, 1995 | 8.000 |
7
3/4 | July
1, 1994 | Jan
1, 1995 | 7.250 |
6
5/8 | Jan
1, 1994 | July
1, 1994 | 5.750 |
7 |
July 1,
1993 | Jan
1, 1994 | 6.000 |
7
3/4 | Jan
1, 1993 | July
1, 1993 | 6.875 |
8 |
July 1,
1992 | Jan
1, 1993 | 7.500 |
8 |
Jan 1,
1992 | July
1, 1992 | 7.500 |
8
1/2 | July
1, 1991 | Jan
1, 1992 | 8.125 |
8
3/4 | Jan
1, 1991 | July
1, 1991 | 8.250 |
9 |
July 1,
1990 | Jan
1, 1991 | 8.625 |
8
1/8 | Jan
1, 1990 | July
1, 1990 | 7.750 |
9 |
July 1,
1989 | Jan
1, 1990 | 8.625 |
9
1/4 | Jan
1, 1989 | July
1, 1989 | 8.625 |
9
3/8 | July
1, 1988 | Jan
1, 1989 | 8.625 |
9
1/8 | Jan
1, 1988 | July
1, 1988 | 8.375 |
9 |
July 1,
1987 | Jan
1, 1988 | 8.250 |
8 |
Jan 1,
1987 | July
1, 1987 | 7.000 |
8
1/4 | July
1, 1986 | Jan
1, 1987 | 7.500 |
10
1/4 | Jan
1, 1986 | July
1, 1986 | 9.250 |
11
1/8 | July
1, 1985 | Jan
1, 1986 | 10.125 |
11
5/8 | Jan
1, 1985 | July
1, 1985 | 10.625 |
13
3/8 | July
1, 1984 | Jan
1, 1985 | 12.000 |
11
1/2 | Jan
1, 1984 | July
1, 1984 | 10.500 |
10
3/8 | July
1, 1983 | Jan
1, 1984 | 9.375 |
10
1/4 | Jan
1, 1983 | July
1, 1983 | 9.750 |
12
3/4 | July
1, 1982 | Jan
1, 1983 | 12.500 |
12
3/4 | Jan
1, 1982 | July
1, 1982 | 11.625 |
12
7/8 | July
1, 1981 | Jan
1, 1982 | 11.625 |
11
3/4 | Jan
1, 1981 | July
1, 1981 | 10.875 |
9
7/8 | July
1, 1980 | Jan
1, 1981 | 9.375 |
9
1/2 | Jan
1, 1980 | July
1, 1980 | |
Comments
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