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FEDERAL R ESER VE BANK OF N E W YORK Circular No. 7275 j November 21, 1973 BANK HOLDING COMPANIES Oral Presentation on Underwriting of Mortgage Guaranty Insurance Rescheduled to January 24, 1974 To A ll Bank Holding Companies, and Others Concerned, in the Second Federal R eserve District; Following is the text of a statement issued November 16 by the Board of Governors of the Federal Reserve System,: The B oa rd o f G o v e r n o rs o f t h e F e d e r a l R e s e r v e System a n n ou n ced t o d a y t h a t i t has r e s c h e d u l e d f o r J a n u a ry 2k an o r a l p r e s e n t a t i o n i n t o t h e q u e s t i o n w h e th e r t h e u n d e r w r i t i n g o f m o rtg a g e g u a r a n te e i n s u r a n c e s h o u ld b e add ed t o t h e l i s t o f a c t i v i t i e s t h a t a r e c l o s e l y r e l a t e d t o b a n k in g and p e r m i s s i b l e t o bank h o l d i n g c o m p a n ie s . The p r e s e n t a t i o n had b e e n s c h e d u le d f o r November 2 8 . Printed below is the text of the Board's notice regarding the hearing. Alfred Hayes, P resid ent. BANK HOLDING COMPANIES Revised Notice of Hearing Regarding Underwriting of Real Estate Mortgage Guaranty Insurance The B oa rd o f G o v e r n o rs p u b l i s h e d i n t h e F e d e r a l R e g i s t e r on O c t o b e r 2 6 , 1973 (3 8 F .R . 2 9 6 1 0 ) , n o t i c e o f an o r a l p r e s e n t a t i o n t o b e h e l d on Novem ber 2 8 , 1 9 7 3 , on t h e m a tte r o f t h e p r o p o s a l t o add t o t h e l i s t o f a c t i v i t i e s t h a t t h e B oard h a s d e t e r m in e d t o b e c l o s e l y r e l a t e d t o b a n k in g o r m an agin g o r c o n t r o l l i n g ban k s ( S e c t i o n 2 2 5 . U (a ) o f R e g u la t i o n Y) t h e f o l l o w i n g : "E n g a g in g i n t h e u n d e r w r it in g o f r e a l e s t a t e m o r tg a g e g u a r a n ty i n s u r a n c e . " In c o n n e c t i o n w it h t h i s n o t i c e , a s i g n i f i c a n t number o f t h e members o f t h e m o rtg a g e g u a r a n ty i n d u s t r y h ave p e t i t i o n e d t h a t t h e B oard d e l a y t h e h e a r i n g u n t i l a t l e a s t J a n u a ry 1 5 , 1 9 7 ^ 5 and t h a t t h e B oa rd r e c o n s i d e r i t s d e c i s i o n d e n y in g t h e p r i o r r e q u e s t s f o r a fo r m a l h e a r i n g . ( Over) The B oard h a s r e c o n s i d e r e d t h e m a tte r and h as d e c i d e d t o r e s c h e d u l e t h e p r o c e e d i n g f o r J a n u a ry 2 h , 197^- , i n o r d e r t h a t p a r t i c i p a n t s b e a s s u r e d a d e q u a te tim e w i t h in w h ich t o p r e p a r e t h e i r p r e s e n t a t i o n s and s e c u r e t h e p a r t i c i p a t i o n o f e x p e rt w itn e s s e s . The B oard h as d e t e r m in e d , h o w e v e r , t h a t a fo r m a l h e a r in g i s n o t n e c e s s a r y f o r t h e p a r t i e s t o a d e q u a t e ly p r e s e n t t h e i r c a s e b u t r a t h e r h as a d o p te d a p r o c e d u r e w h e re b y p a r t i c i p a n t s i n t h e p r o c e e d in g s w i l l h a ve o p p o r t u n i t y f o r r e b u t t a l . The p r o c e e d i n g w i l l b e lim it e d t o th e is s u e s s p e c if i e d in th e p r io r n o t ic e . The B oa rd h as a d o p te d t h e f o l l o w i n g p r o c e d u r e s : ( 1 ) Any p e r s o n i n t e r e s t e d i n p a r t i c i p a t i n g as a p a r t y i n t h e h e a r i n g must f i l e w it h t h e S e c r e t a r y , B oard o f G o v e r n o rs o f t h e F e d e r a l R e s e r v e S y ste m , W a s h in g to n , D. C. 2 0 5 5 1 , t o b e r e c e i v e d b y November 3 0 , 1 9 7 3 , a w r i t t e n r e q u e s t c o n t a i n i n g a s ta te m e n t o f t h e n a tu r e o f th e p e t i t i o n e r ’ s in t e r e s t in th e p r o c e e d in g s , th e e x te n t o f p a r t i c i p a t i o n d e s i r e d , a summary o f t h e m a t t e r s c o n c e r n i n g w h ich p e t i t i o n e r w is h e s t o g i v e t e s t im o n y o r su b m it e v i d e n c e , and t h e names and i d e n t i t y o f w i t n e s s e s who p r o p o s e t o a p p e a r . I n d i v i d u a l s who h a v e a l r e a d y f i l e d t h i s i n f o r m a t io n w it h t h e S e c r e t a r y , p u r s u a n t t o t h e p r i o r n o t i c e , n e e d n o t f i l e a g a in . ( 2 ) A l l su ch p a r t i e s ( a ) w i l l b e n o t i f i e d b y t h e S e c r e t a r y o f t h e i d e n t i t y o f t h e o t h e r p a r t i e s and o f a l l i s s u e s r a i s e d b y them and ( b ) w i l l b e i n v i t e d t o su b m it w r i t t e n m a t e r i a l t o b e r e c e i v e d b y D ecem ber 3 1 , 1973. M a t e r i a l s o s u b m itte d must b e fo r w a r d e d t o a l l oth er p a r t ie s . ( 3 ) Any p a r t y may su b m it w r i t t e n comments on m a t e r i a l s u b m it t e d b y o t h e r p a r t i e s t o b e r e c e i v e d b y J a n u a ry 1 8 , 197^-, and must sen d c o p i e s t h e r e o f t o a l l oth e r p a r t ie s . (U ) Each p a r t y w i l l b e g iv e n a s p e c i f i e d t i m e , n o r m a lly n o t t o e x c e e d 30 m in u t e s , t o p r e s e n t h i s v ie w s o r a l l y a t t h e h e a r i n g t o b e h e l d b e f o r e a v a i l a b l e members o f t h e B oard on J a n u a ry 2 k , 1 9 7 ^ , a t 1 0 :0 0 a . m . , i n t h e B oa rd Room o f i t s b u i l d i n g on 2 0 th and C o n s t i t u t i o n A v e n u e , N .W ., W a s h in g to n , D. C. ( 5 ) A l l p a r t i e s w i l l b e g iv e n u n t i l F e b r u a r y 2 2 , 197^+, t o su b m it su ch a d d i t i o n a l m a t e r i a l r e l a t e d t o i s s u e s r a i s e d a t t h e p r o c e e d i n g as t h e y d e s i r e . I n t e r e s t e d p e rso n s n eed n ot p a r t ic ip a t e in th e o r a l p r e s e n t a t i o n t o h a v e t h e i r v ie w s c o n s i d e r e d b u t may su b m it t h e i r v ie w s i n w r i t i n g t o b e r e c e i v e d b y t h e S e c r e t a r y no l a t e r th a n F e b r u a r y 2 2 , 1 97^ W r it t e n com m en ts, a s t h e y a r e r e c e i v e d , w i l l b e made a v a i l a b l e f o r i n s p e c t i o n and c o p y i n g i n Room 1020 o f th e B oard ’ s b u ild in g . Board of Governors of the Federal Reserve System, November 1 6 , 1973.
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