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FEDERAL HOUSING ADMINISTRATION WASHINGTON STEWART MCDONALD ACTING ADMINISTRATOR June 4, 1935 Honorable II. S. Eccles Federal Reserve Board Washington, D. G. Dear Mr. Eccles: I hand you herewith a brief resume of what the Federal Housing Administration has done since Spring* Of course, you know the amount of modernization and repair -work done in the United States as a result of the FEA casipaign cannot be measured by the number of loans made and insured. Statistics show that for every dollar borrowed under the Modernization Credit Plan, there are approximately $7.00 spent either through uninsured loans or in cash. In this way it is estimated that the total amount of modernization work that has been stimulated is approximately $453,198,455, The FHA operates by means of private capital. Loans for modernization and repair, as well as loans covering financing of mortgages, are being made by approximately 7,000 financial institutions throughout the Itoited States• With new construction, comprising about 34 percent of the total applications received, plus the modernization repair loans, you can readily estimate the amount of work being done every day as a result of the EHA program. It is interesting to note that new residential building permits increased 123$ during April 1935 over the corresponding month of last year. st Acting Administrator
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