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Reducing the down-payment required to 10 percent from 20 percent on
mortgages less than §5400.

Changing the basis upon which the insurance premium is computed so as to
base it on the outstanding balance of the mortgage and making the rate dependent
upon the ratio of loan to the value of property. At the present time the rate
is computed upon the original face of the note and f of 1 percent insurance
through a 20 year period works out to be 3A of .1 percent.


Clarifying Section 207, which is the large scale housing section, so as to
eliminate the implied obligations that these must be quasi-slum clearance projects.
Limitation of $1300 per room to be placed on amount of mortgage permissible instead
of tzyiag to interpret the phrase npersons of low income." Legal departments of
several life insurance companies have balked on loans for this reason.


Also making it possible for mortgagee under Section 207 to secure their
debentures upon assignment of mortgage instead of waiting for formal foreclosure


Changing Section 207 so as to make it possible for developer to build a group
of houses for sale, but rent portions of them in the meantime, selling them off one
by one.


Passage and mofidying of amendments introduced to Congress t?y Wagner and Hancock
at Eccles1 suggestion at the close of the last Session, whereby FHA is authorized to
insure mortgages on multi-family rental housing projects and groups of individual
houses for sale, the insurance to be effective during construction and to apply to
advances made during construction. The mortgages on these projects would be not.
less than $16,000 and not over $200,000 and the properties would not necessarily have
to be owned by a limited dividend corporation. But in no case may the mortgage be •
for more than $1000 per room or more than 80 percent of the value of the property,
and subject to rigid amortization.


Clarifying Title III, which provides for formation of National Mortgage Associations, so that
ratio of debentures may be 20 times their capital surplus instead of
12 as now Pro'Ck(^d, and permitting these National Mortgage Associations to initiate
loans to aJl/flBftLl individual house loans.


Also the immediate formation of a National Mortgage Association, or three
separate ones, with the aggregate capital of not less than Twenty Five Million
Dollars, to open up offices in possibly New York, Chicago and San Francisco and be
prepared to function with the real estate operators on the above program.


We are changing the limitations on the amount of mortgages which may be insured
so as to provide that the Two Billion Dollars ahall apply to outstanding insurance at
apy time rather than the flat limitation of Two Billion as it now stands? and,
simultaneously, we are also eliminating the July 1, 1939> date as the limitation of
the government guarantee of debentures.
In addition to the above, there are numerous clarifying amendments not affecting
the philosophy or scope of the Act, but are necessary to properly administer the Act.