HOUSING AND HOME FINANCE AGENCY-Con. -1,687,167 -2,053,190 -2,105,930 -9,215 -174,320 62,037 360,016 -484,927 -124,911 53,949 1965 estimate 70,820 -37,392 378,708 -416,100 2,105,930 111,194 501,134 -442,680 58.454 -24,084 -77,000 24,084 13,166 vestors, or to the Secretary of the Treasury (the Secretary of the Treasury may not at any one time hold more than $2.25 billion of such obligations), (2) subscriptions by the Secretary of the Treasury to FNMA preferred stock ($92.8 million was authorized in 1955, $50 million in 1957 and $65 million in 1958, making a total of $207.8 million), (3) mandatory contributions into capital incident to subscriptions for the Association's common stock by mortgage sellers and by borrowers, (4) the sale of mortgages to the investing public, (5) repayments and prepayments of mortgage principal, and (6) income from operations. Recommendations for such legislation as may be necessary or desirable to transfer ownership of the Association to the private holders of the common stock must be submitted to the Congress as promptly as practicable after all of the Treasury-held preferred stock has been retired. Meanwhile, the present interim program, financed by 2,064,730 private as well as by Government investment funds, is treated as a trust fund. Operations are discussed in part I of this document in connection with the program's general fund financing and effect on budget expenditures. Revenue, Expense, and Retained Earnings (in thousands of dollars) 42,460 48,000 439,156 -391,156 1966 estimate 162,000 720,100 -516,900 203,200 77,000 -102,000 178,200 677,600 -499,400 1 Balances of selected resources are identified on the statement of financial condition. Repayment of borrowings or purchase of preferred stock from Treasury represent obligations and expenditures of this fund but do not decrease the authority available to the fund since they may be reborrowed from or resold to Treasury at some future time. The secondary market operations of the Federal National Mortgage Association were authorized by the Housing Act of 1954 to provide limited liquidity for Government insured and guaranteed mortgages and to improve the distribution of investment capital available for home mortgage financing. Mortgage purchases and short-term loans secured by FHA-insured and VA-guaranteed mortgages under these operations are financed by the proceeds from (1) the sale of obligations to private in Assets of the fund, which are largely invested in special Treasury interest-bearing securities and in policy loans, are expected to increase from $6,316 million as of June 30, 1964, to $6,711 million as of June 30, 1966. The actuarial estimate of policy obligations as of June 30, 1964, totals $6,259 million, leaving a balance of $57.3 million for contingency reserves. The income of the fund derives from premium receipts, interest on investments, and payments which are made to the fund from the appropriation "Veterans insurance and indemnities," for claims (1) resulting from extra hazards of the veterans' service, and (2) arising on certain policies held by personnel on active duty. Administrative expenses are charged to the appropriation General operating 175,023 176,471 178,362 180,877 5,993 5,969 6,000 5,950 476,733 478,300 479,155 477,803 657,749 660,741 663,517 664,630 747,095 585,267 562,608 439,229 5,721,305 5,796,779 5,897,688 6,123,089 expenses. In order to bolster the economy, all dividends are being disbursed in January rather than being spread throughout the calendar year. The accelerated payment of dividends advanced $99 million of dividend expenditures into 1964 from 1965 and an estimated $94.5 million into 1965 from 1966. The fund is operated on a commercial basis to the greatest possible extent consistent with law. In the program and financing statement, the noncash transactions, which are offset by other claims of the fund, are excluded from program costs in order to show obligations. The following business-type statements of revenue and expense and of financial condition include these noncash transactions relating to the status of insurance policy accounts. Revenue, Expense, and Retained Earnings (in thousands of dollars) Revenue: Funded. Unfunded. Total revenue.. Expense.... Net income or loss for the year. Analysis of retained earnings: Retained earnings, start of year____ Retained earnings, end of year.. Assets: Treasury balance Total assets. Liabilities: Current Operating reserves: Policy reserves. Premium waiver disability reserves.. Reserve for future installments on matured contracts.... Total disability in come reserves_ Reserve for dividends. Financial Condition (in thousands of dollars) 1963 actual 340,910 3,437,089 147,468 1964 actual 758,809 759,616 766,615 12,202 12,550 12,900 Total liabilities. 6,146,478 1965 1966 estimate estimate 771,011 772,166 779,515 763,571 769,488 776,218 7,440 2,678 3,297 49,825 57,265 59,943 57,265 59,943 63,240 1964 actual 7,390 5,713,915 11,546 463,060 392 13,787 5,782,992 12,729 506,308 398 6,196,303 6,316,214 1965 estimate 8,488 5,889,200 13,530 539,100 400 6,450,718 2,070,595 1,967,002 1,882,000 32,916 39,733 117,500 115,500 46,400 112,750 6,258,949 6,390,775 1966 estimate 8,989 6,114,100 14,257 572,840 400 6,710,586 337,446 321,090 330,146 3,624,928 3,848,970 4,055,800 174,339 179,565 184,120 1,822,600 52,430 202,250 6,647,346 10 Identification code 1963 actual 60 49,825 Analysis of Government Equity (in thousands of dollars) Program by activities: 33.0 Investments and loans (policy loans). 99.0 Total obligations 49.825 dowments. 1964 actual 57,265 Object Classification (in thousands of dollars) 1964 actual 5,391,941 5,472,061 5,590.128 5,807,200 463,452 506,706 539,500 573,240 -5,805,568 -5,921,502 -6,069,685 -6,317,200 57,265 Total operating costs. 1. Death claims.. 2. Disability claims.... 3. Cash surrenders and matured en 4. Dividends 5. Interest paid on dividend credits and deposits. 6. Other expense. Capital outlay, funded: 7. Policy loans made. 8. Policy liens established.. Total capital outlay. Total program costs, funded-ob- Financing: 14 Receipts and reimbursements from: Non UNITED STATES GOVERNMENT LIFE INSURANCE FUND Program and Financing (in thousands of dollars) Federal sources: Optional income settlement. 21 Unobligated balance available, start of year: 1965 estimate 24 Unobligated balance available, end of year: New obligational authority (appropria- 1964 actual 48,668 24,454 9,182 14,616 59.943 427 23 94,090 91,495 89,360 635,358 608,680 515,728 729,448 700,175 605,088 97,369 59,943 107,933 1966 estimate 962,355 50,127 1965 1966 estimate estimate 63,240 48,587 24,396 1965 1966 estimate estimate 8,271 14,500 10,391 8,500 63,240 450 96,224 104,844 50,159 7.450 7,700 455 20 89,456 6,750 100 6,850 -17,250 -17,233 -16,922 -984,669-962,355 -940,903 96,306 reserves. The income of the fund derives from premium receipts, interest on investments, and payments which are made to the fund from the appropriation Veterans insurance and indemnities, for claims (a) resulting from the extra hazards of the veteran's service, and (b) arising on certain policies held by personnel on active military duty. Administrative expenses are charged to the appropriation General operating expenses. In order to bolster the economy, all dividends are being disbursed in January rather than being spread throughout the calendar year. The accelerated payment of dividends advanced $7 million of expenditures into 1964 from 1965 and an estimated $6.5 million into 1965 from 1966. The fund is operated on a commercial basis to the greatest possible extent consistent with law. In the program and financing statement, the noncash transac 49,046 47,168 tions, which are offset by other claims of the fund, are excluded from program costs in order to show the obliga 1965 estimate 1966 estimate 982,713 962,368 35,113 34,464 34,213 33.485 128 13,555 51,799 50,127 49,046 47,168 79,131 72,204 69,391 62,998 1,004,791 982,713 962,368 946,538 Assets of the fund, which are largely invested in interestbearing securities and policy loans, are estimated to decline from $1,078 million as of June 30, 1964, to $1,032 million as of June 30, 1966, as an increasing number of policies mature through death or disability. The actuarial evaluation of policy obligations as of June 30, 1964, totals $1,042 million, leaving a balance of $36 million for contingency |
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