the acquisition of properties, mortgages, and home improvement notes under insurance contracts; the repair, management, and sale of acquired properties; the payment, largely in debentures, of claims under insurance contracts; the servicing and sale of mortgages acquired as a part of some sales transactions; and the accounting work arising out of the other settlement activities. The number of properties and mortgages acquired in any year and the number on hand and sold during the year constitute an index of the settlement workload. The total number of The total number of properties directly acquired under insurance contracts, in dwelling units, is estimated to increase from 43,325 units in 1964 to 47,000 in 1965 and to 48,000 in 1966. Property on hand is expected to increase from 77,657 units at the end of 1964 to 77,916 units at the end of 1965 and then to drop significantly to 74,841 units at the end of 1966 as property sales increase. The total of assigned mortgages is expected to increase from 36,064 units at the end of 1964 to 36,505 at the end of 1965 and to be reduced to 36,180 at the end of 1966. Summary of Operating Expense Estimates.-Operating expenses are paid out of operating income, subject to Congressional limitation. Expenses for 1965 are estimated at $10,085 thousand for administrative operations and $79,775 thousand for nonadministrative operations, adjusted for the pay increase in the current year. The 1966 estimate is $10,450 thousand for administrative expenses and $80,850 thousand for nonadministrative. Financing.-Mortgage insurance claims are met largely by the issuance of debentures, which are subsequently redeemed out of income and proceeds from the sale of acquired properties and mortgages. In 1964, $500 million of debentures were issued. Debentures to be issued are estimated at $543 million in 1965, and $549 million in 1966. Debentures were rètired in 1964 in the amount of $293 million. The amount of debentures retired is estimated to increase markedly in 1965 to $860 million and for 1966 is estimated at $641 million, because of the large inflow of cash from maturing securities, cash sales of acquired home properties, sales of purchase-money mortgages to Federal National Mortgage Association, and other sources. Retained earnings.-Insurance reserves, available for the payment of future expenses and losses, amounted to $1,118 million at the end of 1964 and are expected to increase to $1,162 million at the end of 1965 and to $1,229 million at the end of 1966. Insurance authority. All authorizations for active insurance programs expire October 1, 1965. The general mortgage insurance authorization, section 217, applies to all active mortgage insurance programs, except section 221 and title VIII. The housing repair and improvement insurance authorization, title I, section 2, applies to property improvement loans. The authority to insure mortgages on sales and rental housing, with respect to the moderate-income housing program, is covered by section 221. There is no time limitation on the authorization under this section with respect to families displaced from urban renewal areas or as a result of other governmental action. The armed services housing insurance authorization is covered by sections 809 and 810. A limitation of $2.3 billion in insurance issued covers sections 803, 809, and 810, effective from the date of Public Law 84-345, August 11, 1955. Basic 1-4 family mortgage insurance program Expense.. Net operating income.... Basic multifamily housing mortgage insurance Net operating loss........... Urban renewal and relocation housing insur- Net operating income or loss.. Armed services and servicemen's mortgage in- 1964 actual 1965 1966 estimate estimate 20,676 20,922 18,273 15,582 17,172 17,113 5,094 3,750 1,160 8,606 9,220 22,679 21,162 19,816 17,675 9,208 8,254 Cash with U.S. Treasury: Revolving fund accounts. 74,064 185,556 Deposit fund accounts. 2,393 2,084 U.S. securities (par): Treasury issuances.. Other agency issuances, guaranteed.. 47,815 Accounts receivable, net... 105,540 123,868 123,868 126,427 143,020 Mortgage notes and sales con tracts, net... 340,289 236,067 166,527 Acquired properties, mortgages 123,868 158,234 158,666 645,782 3,471 and notes, net.. 279 1,937,324 2,161,812 1,904,914 1,886,463 120,699 118,584 120,949 127,165 LIMITATION ON ADMINISTRATIVE AND NONADMINISTRATIVE For administrative expenses in carrying out duties imposed by or pursuant to law, not to exceed [$9,687,500] $10,450,000 of the various funds of the Federal Housing Administration shall be available, in accordance with the National Housing Act, as amended (12 U.S.C. 1701), including uniforms or allowances therefor, as authorized by the Act of September 1, 1954, as amended (5 U.S.C. 2131): Provided, That funds shall be available for contract actuarial services (not to exceed $1,500): Provided further, That nonadminis trative expenses classified by section 2 of Public Law 387, approved October 25, 1949, shall not exceed [$78,000,000 $80,850,000. (Independent Offices Appropriation Act, 1964.) Debentures authorized and in Debentures outstanding Reserve for foreclosure costs. Total liabilities............... 83.928 129,675 142,809 142,809 586,359 792,771 475,815 383,328 2,466 3,084 3,536 3,915 743, 109 793,452 1,044, 114 657,217 Government equity: 1. Home modernization and repair insurance program (title I, sec. 2. Basic 1-4 family mortgage insurance 2). 146,509 138,009 163,165 980,707 971,189 1,023,796 1,099,737 Total Government equity. 1,143,872 1,117,698 1,161,805 1,229,246 Analysis of Government Equity (in thousands of dollars) 129,509 program (title I, sec. 8, and title II, sec. 203). Unpaid undelivered orders 1. Unobligated balance. 348 386 828,637 1,101,145 386 906,927 386 950,714 6. Other active programs (title II, secs. 203k, 233, and 234).. 5. Armed services and servicemen's mortgage insurance programs (title II, sec. 222, and title VIII, secs. 803, 809, and 810)... 4. Urban renewal and relocation housing insurance programs (title II, secs. 220, 220h, and 221). 3. Basic multifamily housing mortgage insurance programs (title II, secs. 207, 213, 231, and 232) . |