Regulations Governing the Offering of United States Mortgage Guaranty Insurance Company Tax and Loss Bonds

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The Department of the Treasury (Department) or (Treasury) is issuing in final form an amendment to its regulations governing United States Mortgage Guaranty Insurance Company Tax and Loss Bonds, referred to as tax and loss bonds. These securities are available for purchase only by companies organized and engaged in the business of writing mortgage guaranty insurance within the United States. Previously, these securities were issued in definitive (paper) form. They were only available in a ten year maturity. The Department has determined that maintaining and servicing these securities in definitive form is not cost-effective. The Department had also received many requests to offer a twenty year maturity. This final rule will reduce administrative overhead and costs by providing that on or after the effective date of the regulation, the securities will only be offered in book-entry form and that the securities may, at the option of the holder, be converted to book-entry form. It will also provide for maturities of either ten or twenty years. Minor changes to redemption notices have been added and all addresses have been updated.