On September 9, HUD issued a notice announcing revised interest rates for debentures issued in connection with loans or mortgages insured by the FHA under the National Housing Act. For debentures issued under Section 221(g)(4) during the six-month period beginning July 1, 2025, the interest rate has been set at 4 3/8 percent. For debentures issued under other provisions of the Act with commitments or endorsements during the same period, the rate has been set at 4 5/8 percent.
HUD noted that the applicable interest rate for debentures is determined by the date of the insurance commitment or endorsement — whichever is higher — and is published semiannually in the Federal Register. The new rates reflected the statutory maximum interest rate as determined by the Secretary of the Treasury, based on the average yield of outstanding marketable Treasury obligations of 15 or more years. The notice also clarified that for certain cash claim payments, the debenture interest rate would be based on the monthly average yield of 10-year Treasury securities for the month in which the mortgage default occurred — published semi-annually in the Fed’s Statistical Release H-15.
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