The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F e d e r a l R e s e r v e b a n k OF DALLAS Dallas, Texas, September 15,1952 REAL ESTATE CREDIT SUSPENSION OF REGULATION X To All Persons Engaged in the Business of Extending Real Estate Credit in the Eleventh Federal Reserve D istrict: There is quoted below the text of a statement issued today by the Board of Governors of the Federal Reserve System relating to the suspension of Regulation X : ‘‘The Board of Governors of the Federal Reserve System to day suspended Regulation X — Real Estate Credit — in connec tion with its announcement of a period of real estate credit control relaxation prescribed by the 1952 amendments to the Defense Production Act. The suspension of Regulation X, effec tive September 16, 1952, applies to credit terms on both resi dential and nonresidential properties. Conventional mortgage loans are, of course, still subject to basic state and federal statutes governing real estate loans by financial institutions. “The Board’s action today relates only to real estate credit not insured or guaranteed by the Government. A statement on terms that will apply to government aided real estate credit is being issued separately by the Housing and Home Finance Ad ministrator, Raymond E. Foley, who concurred in the Board’s announcement. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) “ Regulation X was first issued in October, 1950, under author ity of the Defense Production Act of 1950 and Executive Order 10161 providing for regulation of real estate credit terms to restrain inflation and conserve defense-needed materials. It was suspended in view of mandatory provisions in the 1952 amend ments to the Defense Production Act. These amendments re quired that a period of residential credit control relaxation be announced if estimated residential construction starts for three consecutive months were below a seasonally adjusted annual rate of 1,200,000 units. Information has been received from the Secretary of Labor that the seasonally adjusted annual rate of housing starts, as estimated for this purpose, was less than 1,200,000 units in each of the months of June, July, and August, 1952.” The cooperation which this bank has received from Registrants in connection with its administration of Regulation X is greatly appre ciated. Yours very truly, R. R. GILBERT, President REGULATION X — REAL ESTATE CREDIT NOTICE OF SUSPENSION Issued by the Board of Governors of the Federal Reserve System with the concurrence of the Housing and Home Finance Administrator 1. A. The Secretary of Labor has transmitted to the Board of Gov ernors of the Federal Reserve System the estimates required to be made by section 607 of the Defense Production Act of 1950, as amended, and section 503 of Executive Order No. 10161, as amended. B. The Secretary of Labor, on the basis of his estimates of the number of permanent, nonfarm, family dwelling units, the construc tion of which has been started during each of the three calendar months, June, July, and August, 1952, has estimated the annual rate of construction starts during each such months, after making reason able allowance for seasonal variations in the rate of construction. C. The annual rate of construction starts so estimated by the Secretary of Labor for each of the said three months was at a level below an annual rate of 1,200,000 starts per year. 2. In view of the foregoing, as required by section 607 of the Defense Production Act, as amended, and section 503 of Executive Order No. 10161, as amended, the Board of Governors of the Federal Reserve System, with the concurrence of the Housing and Home Finance Administrator, hereby announces the beginning of a “ period of resi dential credit control relaxation” which period shall begin on Septem ber 16, 1952. 3. A. Effective September 16, 1952, Regulation X is suspended. B. The suspension of Regulation X was adopted by the Board after consideration of all relevant matter, including recommendations received from time to time from industry and trade association repre sentatives and others. Section 709 of the Defense Production Act of 1950, as amended, provides that the functions exercised under such Act shall be excluded from the operation of the Administrative Pro cedure Act (60 Stat. 237), except as to the requirements of section 3 thereof.
@FedFRASER