NONADMINISTRATIVE EXPENSES Expenses will be incurred mainly in connection with the processing, inspection, and review work resulting directly from the increased number of applications for mortgage insurance. Revised tables of estimated expenses, the determination of personnel requirements, and analysis of field travel costs are included elsewhere in this justification. A summary of personal services is as follows: Personnel requirements are developed on a workload and production-ratio basis as shown on the accompanying table. While the increased workload will affect several nonadministrative departmental organizational units, supplemental nonadministrative headquarters expense authorization is being requested only for the Insurance Control Section of the Insurance Branch of the Comptroller's Division. The entire increase of 20 man-years results from the added number of new mortgages to be insured and serviced. The major increase in this request is for the examination of mortgage insurance applications in the field, amounting to 462 man-years, or almost 70 percent of the total 678 man-years. The estimated examination ratio of 314 per manyear takes into account an estimated 135,000 appraisals to be made by fee appraisers. This high ratio is made possible by the abnormally high volume of 1 to 4-family mortgage insurance applications and by the utilization of fee appraisers in most of the insuring offices. An additional 83 man-years required for construction inspection results from the increase in new construction cases. Assignment and review work resulting from the increased examination workload is expected to require 74 man-years of employment. Subdivision analysis reports are also expected to increase by 2,000, requiring 19 additional man-years. The certified agency program is expected to require 20 man-years under the field activity of program representation. A special field staff of 37 is expected to be used only during the last half of fiscal 1959 to contact mortgagees in regard to this program. Provision is being made also for an underwriting review of these cases by the insuring offices. At present, approximately 900 mortgagees have been certified to act as "authorized agents of the Federal Housing Commissioner," and another 400 should be certified in the near future. This program now operates in only a very limited number of offices and commitments during 1959 are expected to total from 15,000 to 20,000 units. This total represents a rapid growth, considering the newness of the program. Proceeding gradually and experimentally in only 7 areas, the program had resulted in only 12 insurance commitments prior to January. During January 35 commitments were issued. Since then the number has grown each month. In May there were 708 commitments, making a cumulative total of 1,374. Meanwhile, in April, the program was extended to eight additional areas; and by the latter part of fiscal 1959 it is expected to be operating in all areas. The increase of $296,000 is for field travel; and, as shown in the accompanying table, the major workload items used in developing personnel requirements are used also to develop the travel estimate. Presently available__ Revised estimate___. Difference---- 03 Transportation of things $90,000 94, 500 4,500 Under the present limitation, transportation expenses will average almost $16 per full-time man-year. The revised estimate is based on an average cost of $16 for only the additional 283 field man-years. Revised postal rates, effective August 1, 1958, will increase FHA postage expense by $90,000. Long distance calls and telegrams under the limitation average almost $18 per full-time and overtime man-year, and this same rate is used for the additional 548 man-years. The revised estimate provides fo a peak field staff of 5,150 employees which would be an increase of 450 during the year. The increase of $79,000 in field rents is to provide additional space for 450 employees for an estimated 6 months. Presently available--- Difference-- 06 Printing and reproduction $225,000 248, 000 23, 000 Printing costs under the limitation average $42 per full-time and overtime man-year, and the same unit cost is used for the revised estimate. Field contractual services have been developed on the basis of the man-year cost (full time and over time) that would apply under the amount which is presently available. Field supplies, under the amount presently available, average almost $48 per full time and over time man-year. The same average has been used in developing the revised estimate. The amount presently available provides $200,000 for replacements and $150,000 for the purchase of new equipment. The revised estimate includes the purchase of new equipment for 450 employees. 11 Grants, subsidies, and contributions Presently available_ Revised estimate.. Difference $1,775,000 1,870,000 95,000 This object is based on 61⁄2 percent of the estimate for full-time salaries and work in excess of a 52-week base, excluding those employees covered by social security. The revised estimate is based on man-year cost of the full-time employment. |