[Federal Register: January 12, 2001 (Volume 66, Number 9)]
[Proposed Rules]               
[Page 2851-2852]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12ja01-26]                         

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 203

[Docket No. FR-4469-N-02]
RIN 2502-AH38

 
Withdrawal of Proposed Rule on Sources of Homeowner Downpayment 
Pursuant to Section 203 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 
prohibited gifts from non-profit organizations being used for the 
mortgagor's investment in a mortgaged property if the organization 
received the funds for the gift either directly or indirectly from the 
seller.

DATES: This notice is effective January 12, 2001.

FOR FURTHER INFORMATION CONTACT: Vance Morris, Director, Home Mortgage 
Insurance Division, Room 9266, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410-8000, (202) 
708-2700 (this is not a toll-free number). For hearing-and speech-
impaired persons, this number may be accessed via TTY (text telephone) 
by calling the Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Background

    On September 14, 1999, HUD published in the Federal Register a 
proposed rule to establish standards for the use of gifts provided by 
non-profit organizations as a source of the mortgagor's investment in 
the mortgaged property. The regulation would have permitted certain 
gifts by non-profit corporations for use as the mortgagor's investment, 
but would have prohibited them whenever they were directly or 
indirectly derived from the seller of the property, or if the seller

[[Page 2852]]

paid other consideration or reimbursement to the nonprofit for making 
the gift.
    The comment period closed on November 15, 1999. By the time of the 
close of the comment period, HUD received 1,871 comments. Only 21 of 
these comments favored the rule. The overwhelming majority of comments 
opposed the rule.
    Based on these public comments, HUD has determined to withdraw this 
proposed rule on sources of homeowner downpayment.

    Dated: January 2, 2001.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 01-1000 Filed 1-11-01; 8:45 am]
BILLING CODE 4210-27-P