www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

July 13, 1994
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 94-33
     ALL APPROVED MORTGAGEES
     SUBJECT:  Debenture Interest Rates
 
          Notice has been published in the Federal Register that the
     debenture interest rate will be 7 3/4 percent for the next six-month
     period.  The rate applies to all home and project mortgages
     and loans under the National Housing Act, as amended, except
     Section 221(g)(4), committed or endorsed on or after July 1, 1994.
 
          Debentures bear interest at the rate in effect at the date of
     commitment or endorsement for insurance, whichever is higher.
     Rates applicable to mortgages committed or endorsed in prior
     periods are as follows:
     ______________________________________________________________________
 
     Effective interest rate                 on or after       prior to
     _______________________                 ___________     ____________
     9 1/2  ................................ Jan. 1, 1980    July 1, 1980
     9 7/8  ................................ July 1, 1980    Jan. 1, 1981
     11 3/4 ................................ Jan. 1, 1981    July 1, 1981
     12 7/8 ................................ July 1, 1981    Jan. 1, 1982
     12 3/4 ................................ Jan. 1, 1982    Jan. 1, 1983
     10-1/4 ................................ Jan. 1, 1983    July 1, 1983
     10 3/8 ................................ July 1, 1983    Jan. 1, 1984
     11 1/2 ................................ Jan. 1, 1984    July 1, 1984
     13 3/8 ................................ July 1, 1984    Jan. 1, 1985
     11 5/8 ................................ Jan. 1, 1985    July 1, 1985
     11 1/8 ................................ July 1, 1985    Jan. 1, 1986
     10 1/4 ................................ Jan. 1, 1986    July 1, 1986
     8 1/4  ................................ July 1, 1986    Jan. 1, 1987
     8 ..................................... Jan. 1, 1987    July 1, 1987
     9 ..................................... July 1, 1987    Jan. 1, 1988
     9 1/8  ................................ Jan. 1, 1988    July 1, 1988
     9 3/8  ................................ July 1, 1988    Jan. 1, 1989
     9 1/4  ................................ Jan. 1, 1989    July 1, 1989
     9 ..................................... July 1, 1989    Jan. 1, 1990
     8 11/8 ................................ Jan. 1, 1990    July 1, 1990
     9  3 .................................. July 1, 1990    Jan. 1, 1991
     8 31/4 ................................ Jan. 1, 1991    July 1, 1991
     8 1/2  ................................ July 1, 1991    Jan. 1, 1992
     8 ..................................... Jan. 1, 1992    July 1, 1992
     8 ..................................... July 1, 1992    Jan. 1, 1993
     7 3/4 ................................. Jan. 1, 1993    July 1, 1993
     7 ..................................... July 1, 1993    Jan. 1, 1994
     6 5/8  ................................ Jan. 1, 1994    July 1, 1994
     7 3/4  ................................ July 1, 1994
        _____________________________________________________________________
        _____________________________________________________________________
                                                                 2
 
         Notice has also been published in the Federal Register that
     the debenture interest rate will be 7 1/4 percent for mortgages
     assigned to HUD under the provisions of Section 221(g)(4) for the
     six-month period beginning July 1, 1994.
 
         Claims for insurance benefits that are settled in cash in lieu
     of debentures will include an interest allowance, comparable to the
     interest at the debenture rate, on the amount of the settlement.
 
         If you have any questions, please call Fred McLaughlin at
     (202) 755-7450.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing
- Federal Housing Commissioner