www.hudclips.org U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D. C. 20410-8000 April 23, 1991 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER MORTGAGEE LETTER 91-20 TO: ALL APPROVED MORTGAGEES SUBJECT: Soldiers' and Sailors' Civil Relief Act of 1940 Section 235 Factor Tables The Soldiers' and Sailors' Civil Relief Act of 1940 (the Act) provides protection and relief to civilians who are mobilized into the military. The Act provides for a mortgage interest rate reduction on existing mortgages to six percent for the period of relief. The period of relief begins when the service member receives orders to report for active military duty and ends when the service member is released from active duty. (Refer to Mortgagee Letter 91-6, dated January 30, 1991, Effect of Soldiers' and Sailors' Civil Relief Act of 1940 on FHA-insured Mortgages, Section 1., for additional information regarding application of the six percent mortgage interest rate.) With respect to Section 235 mortgages, attached are three factor tables at the six percent contract rate for use in calculating the Formula II subsidy. For Section 235 mortgages closed August 9, 1968 through January 4, 1976 use the factor table reflecting the subsidy rate of 1.00 percent, for mortgages closed between January 5, 1976 through March 6, 1978, use the factor table reflecting the 5.00 percent subsidy rate, for mortgages closed from March 7, 1978 to present, use the factor table reflecting a subsidy rate of 4.00 percent. (This information is outlined in HUD Handbook 4330.1, Administration of Insured Home Mortgages, Chapter 10, paragraph 10-12, D). NOTE: A reminder that for Section 235 Revised Recapture 10 mortgages, effective January 1, 1985, the Formula I calculation changed to 28 percent of the mortgagors' adjusted monthly income. _____________________________________________________________________ 2 Questions concerning the Soldiers' and Sailors' Civil Relief Act or the factor tables should be directed to the Loan Management Branch of the local HUD Field Office. Sincerely yours, Arthur J. Hill Assistant Secretary for Housing-Federal Housing Commissioner Attachments _____________________________________________________________________ APPROXIMATE CLOSING DATES: 8/9/68-1/4/76 CONTRACT RATE 6.00% SUBSIDY RATE 1.00% PREMIUM RATE .50% SECTION 235 FACTOR TABLES* PURSUANT TO THE SOLDIERS' AND SAILORS' CIVIL RELIEF ACT AMORTIZATION YEAR MORTGAGE FORMULA TWO TERM (YEARS) 1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 10 2.7424 2.7101 2.6759 2.6395 2.6009 2.5598 2.5163 2.4701 2.4210 2.3689 15 2.8587 2.8405 2.8212 2.8007 2.7789 2.7559 2.7313 2.7053 2.6777 2.6483 20 2.9816 2.9701 2.9580 2.9450 2.9313 2.9168 2.9013 2.8849 2.8674 2.8489 25 3.0933 3.0856 3.0775 3.0689 3.0597 3.0500 3.0396 3.0287 3.0170 3.0046 30 3.1943 3.1891 3.1834 3.1775 3.1712 3.1645 3.1573 3.1498 3.1417 3.1332 35 3.2950 3.2913 3.2873 3.2830 3.2786 3.2738 3.2687 3.2634 3.2577 3.2516 40 3.3955 3.3928 3.3899 3.3869 3.3837 3.3802 3.3766 3.3727 3.3686 3.3643 11TH 12TH 13TH 14TH 15TH 16TH 17TH 18TH 19TH 20TH 15 2.6172 2.5841 2.5490 2.5117 2.4722 20 2.8293 2.8084 2.7863 2.7628 2.7378 2.7113 2.6832 2.6533 2.6216 2.5879 25 2.9915 2.9776 2.9628 2.9471 2.9304 2.9127 2.8939 2.8739 2.8527 2.8302 30 3.1241 3.1145 3.1043 3.0935 3.0820 3.0698 3.0568 3.0430 3.0284 3.0129 35 3.2452 3.2384 3.2311 3.2234 3.2152 3.2066 3.1974 3.1876 3.1772 3.1662 40 3.3597 3.3548 3.3496 3.3440 3.3382 3.3320 3.3253 3.3183 3.3109 3.3030 21ST 22ND 23RD 24TH 25TH 26TH 27TH 28TH 29TH 30TH 25 2.8063 2.7810 2.7540 2.7255 2.6951 30 2.9964 2.9789 2.9604 2.9407 2.9197 2.8975 2.8739 2.8489 2.8223 2.7941 35 3.1545 3.1421 3.1289 3.1149 3.1000 3.0843 3.0675 3.0497 3.0309 3.0108 40 3.2945 3.2856 3.2762 3.2661 3.2554 3.2441 3.2321 3.2193 3.2057 3.1913 31ST 32ND 33RD 34TH 35TH 36TH 37TH 38TH 39TH 40TH 35 2.9895 2.9669 2.9430 2.9175 2.8907 40 3.1760 3.1598 3.1426 3.1243 3.1049 3.0843 3.0624 3.0391 3.0145 2.9888 *NOTE: THE FACTORS IN THE 1ST COLUMN ON EACH PAGE OF THESE FACTOR TABLES APE ORIGINATION FACTORS -- NOT AMORTIZATION FACTORS. FOR EXAMPLE: TO COMPUTE THE FORMULA TWO ASSISTANCE FOR THE 1ST ANNIVERSARY OF A MORTGAGE, SELECT THE CORRECT FACTOR FROM THE 2ND COLUMN OF FACTORS. Page 1 of 3 _____________________________________________________________________ APPROXIMATE CLOSING DATES: 1/5/75-3/6/78 CONTRACT RATE 6.00% SUBSIDY RATE 5.00% PREMIUM RATE .70% SECTION 235 FACTOR TABLES* PURSUANT TO THE SOLDIERS' AND SAILORS' CIVIL RELIEF ACT AMORTIZATION YEAR MORTGAGE FORMULA TWO TERM (YEARS) 1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 10 1.0634 1.0182 .9702 .9193 .8652 .8078 .7468 .6821 .6134 .5404 15 1.1021 1.0767 1.0497 1.0210 .9905 .9582 .9239 .8874 .8487 .8077 20 1.1463 1.1302 1.1132 1.0951 1.0759 1.0555 1.0338 1.0108 .9864 .9605 25 1.1786 1.1679 1.1565 1.1444 1.1316 1.1179 1.1035 1.0881 1.0718 1.0545 30 1.2101 1.2027 1.1948 1.1865 1.1776 1.1682 1.1583 1.1477 1.1364 1.1245 35 1.2410 1.2358 1.2302 1.2243 1.2180 1.2113 1.2042 1.1967 1.1887 1.1802 40 1.2617 1.2579 1.2539 1.2496 1.2451 1.2403 1.2352 1.2298 1.2241 1.2180 11TH 12TH 13TH 14TH 15TH 16TH 17TH 18TH 19TH 20TH 15 .7641 .7178 .6686 .6164 .5610 20 .9330 .9038 .8728 .8399 .8049 .7678 .7284 .6866 .6422 .5951 25 1.0361 1.0166 .9959 .9739 .9505 .9257 .8994 .8715 .8418 .8103 30 1.1118 1.0983 1.0841 1.0689 1.0528 1.0357 1.0175 .9983 .9778 .9561 35 1.1712 1.1617 1.1515 1.1408 1.1293 1.1172 1.1043 1.0906 1.0761 1.0607 40 1.2116 1.2047 1.1974 1.1897 1.1815 1.1727 1.1635 1.1536 1.1432 1.1321 21ST 22ND 23RD 24TH 25TH 26TH 27TH 28TH 29TH 30TH 25 .7769 .7414 .7037 .6636 .6212 30 .9330 .9085 .8825 .8549 .8256 .7945 .7615 .7264 .6892 .6497 35 1.0443 1.0269 1.0085 .9889 .9681 .9460 .9225 .8976 .8712 .8431 40 1.1204 1.1079 1.0946 1.0805 1.0656 1.0497 1.0329 1.0150 .9960 .9759 31ST 32ND 33RD 34TH 35TH 36TH 37TH 38TH 39TH 40TH 35 .8133 .7817 .7481 .7125 .6749 40 .9545 .9317 .9076 .8820 .8548 .8260 .7953 .7628 .7282 .6923 *NOTE: THE FACTORS IN THE 1ST COLUMN ON EACH PAGE OF THESE FACTOR TABLES ARE ORIGINATION FACTORS -- NOT AMORTIZATION FACTORS. FOR EXAMPLE: TO COMPUTE THE FORMULA TWO ASSISTANCE FOR THE 1ST ANNIVERSARY OF A MORTGAGE, SELECT THE CORRECT FACTOR FROM THE 2ND COLUMN OF FACTORS. Page 2 of 3 _____________________________________________________________________ APPROXIMATE CLOSING DATES: 3/7/78-PRESENT CONTRACT RATE 6.00% SUBSIDY RATE 4.00% PREMIUM RATE .70% SECTION 235 FACTOR TABLES* PURSUANT TO THE SOLDIERS' AND SAILORS' CIVIL RELIEF ACT AMORTIZATION YEAR MORTGAGE FORMULA TWO TERM (YEARS) 1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 10 1.5434 1.4982 1.4502 1.3993 1.3452 1.2878 1.2268 1.1621 1.0934 1.0204 15 1.6121 1.5867 1.5597 1.5310 1.5005 1.4682 1.4339 1.3974 1.3587 1.3177 20 1.6863 1.6702 1.6532 1.6351 1.6159 1.5955 1.5738 1.5508 1.5264 1.5005 25 1.7486 1.7379 1.7265 1.7144 1.7016 1.6879 1.6735 1.6581 1.6418 1.6245 30 1.8001 1.7927 1.7848 1.7765 1.7676 1.7582 1.7483 1.7377 1.7264 1.7145 35 1.8610 1.8558 1.8502 1.8443 1.8380 1.8313 1.8242 1.8167 1.8087 1.8002 40 1.9117 1.9079 1.9039 1.8996 1.8951 1.8903 1.8852 1.8798 1.8741 1.8680 11TH 12TH 13TH 14TH 15TH 16TH 17TH 18TH 19TH 20TH 15 1.2741 1.2278 1.1786 1.1264 1.0710 20 1.4730 1.4438 1.4128 1.3799 1.3449 1.3078 1.2684 1.2266 1.1822 1.1351 25 1.6061 1.5866 1.5659 1.5439 1.5205 1.4957 1.4694 1.4415 1.4118 1.3803 30 1.7018 1.6883 1.6741 1.6589 1.6428 1.6257 1.6075 1.5883 1.5678 1.5461 35 1.7912 1.7817 1.7715 1.7608 1.7493 1.7372 1.7243 1.7106 1.6961 1.6807 40 1.8616 1.8547 1.8474 1.8397 1.8315 1.8227 1.8135 1.8036 1.7932 1.7821 21ST 22ND 23RD 24TH 25TH 26TH 27TH 28TH 29TH 30TH 25 1.3469 1.3114 1.2737 1.2336 1.1912 30 1.5230 1.4985 1.4725 1.4449 1.4156 1.3845 1.3515 1.3164 1.2792 1.2397 35 1.6643 1.6469 1.6285 1.6089 1.5881 1.5660 1.5425 1.5176 1.4912 1.4631 40 1.7704 1.7579 1.7446 1.7305 1.7156 1.6997 1.6829 1.6650 1.6460 1.6259 31ST 32ND 33RD 34TH 35TH 36TH 37TH 38TH 39TH 40TH 35 1.4333 1.4017 1.3681 1.3325 1.2949 40 1.6045 1.5817 1.5576 1.5320 1.5048 1.4760 1.4453 1.4128 1.3782 1.3423 *NOTE: THE FACTORS IN THE 1ST COLUMN ON EACH PAGE OF THESE FACTOR TABLES ARE ORIGINATION FACTORS -- NOT AMORTIZATION FACTORS. FOR EXAMPLE: TO COMPUTE THE FORMULA TWO ASSISTANCE FOR THE 1ST ANNIVERSARY OF A MORTGAGE, SELECT THE CORRECT FACTOR FROM THE 2ND COLUMN OF FACTORS. Page 3 of 5