HUD annouced a recall of specific FHA debentures, outstanding as of Sept. 30, 2006, to be implemented in January 2007.

Notice of FHA Debenture Recall

This notice announces a debenture recall of certain FHA debentures, in accordance with authority provided in the National Housing Act.

HUD announces the call of all FHA debentures, with a coupon rate of 6% or above, except for those debentures subject to "debenture lock agreements," that have been registered on the books of the Bureau of Public Debt, Department of the Treasury, and are therefore "outstanding" as of Sept. 30, 2006. The date of the call is Jan. 1, 2007.

The debentures will be redeemed at par value plus accrued interest. Interest will cease to accrue on the debentures as of the call date. At redemption, final interest on any called debentures will be paid along with the principal. Payment of final principal and interest due on Jan. 1, 2007, will be made automatically to the registered holder.

During the period from the date of the notice to the call date, debentures that are subject to the call may not be used by the mortgagee for a special redemption purchase in payment of a mortgage insurance premium. No transfer of debentures covered by the foregoing call will be made on the books maintained by the Department of the Treasury on or after Dec. 15, 2006. This debenture call does not affect the right of the holder of a debenture to sell or assign the debenture on or after this date.

For additional information contact;
Daryll Getter
Office of Evaluation
Dept. of Housing and Urban Development
451 Seventh Street SW Room 2232
Washington D.C. 20410
202-755-7500

Full Article Notice of FHA Debenture Recall