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 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. 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. Position with Respect to Insurance Authority (in thousands of dollars) 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. MORTGAGE INSURANCE-ARMED Insurance authority... Charges against insurance authority: Total charges against authority........... Unused authority. Net operating income...... (title I, section 8 and title II, section 203): Net operating income... Financing. Mortgage insurance claims are met largely Basic 1-4 family mortgage insurance program 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 retired 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. Home modernization and repair insurance pro- Revenue, Expense, and Retained Earnings (in thousands of dollars) 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- Net operating income..... Other active programs (title II, sections 203k, Revenue.... Net operating loss.. Inactive or expired programs (title VI, title Net operating income... 1965 1966 1964 actual estimate estimate 2.300,000 2,300,000 2,300,000 2,063,649 2,100,280 2,150,490 15,536 41,024 38,495 2,079,185 2,141,304 2,188,985 220,815 158,696 111,015 Invested capital and earnings... 314,887 16,167 254,492 278,146 Total Government equity...1,143,872 1,117,698 1,161,805 1,229,246 Analysis of Government Equity (in thousands of dollars)--Continued 1963 actual 1964 actual 1965 1966 estimate estimate 386 950,714 Program by activities: Operating costs: 1. Home modernization and repair insurance program (title I, sec. 2). 2. Basic 1-4 family mortgage insurance program (title I, sec. 8, and title II, sec. 203) 3. Basic multifamily housing mortgage insurance programs (title II, secs. 207, 213, 231, and 232). 4. Urban renewal and relocation housing insurance programs (title II, secs. 220, 220h, and 221).... 5. Armed services and servicemen's mortgage insurance programs (title II, sec. 222, and title VIII, secs. 803,809, and 810). 6. Other active programs (title II, secs. 203k, 233, and 234) .... 1964 1965 1966 actual estimate estimate 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.) Administrative Expenses Program and Financing (in thousands of dollars) 507,344 550,000 560,000 121,657 118,632 93,200 27,460 22,385 15,600 16,656 8,500 8,500 9,316 10,085 10,450 76,320 79,775 80,850 758,753 789,377 768,600 1964 actual 603 5,007 1,648 1,143 237 224 1966 estimate Nonadministrative Expenses-Continued Program and Financing (in thousands of dollars)-Continued Program by activities-Continued Operating costs-Continued 3. Basic multifamily housing mortgage insurance programs (title II, secs. 207, 213, 231, and 232). 4. Urban renewal and relocation housing insurance programs (title II, secs. 220, 220h, and 221) ....... 5. Armed services and servicemen's mortgage insurance programs (title II, sec. 222, and title VIII, secs. 803, 809, and 810) 6. Other active programs (title II, secs. 203k, 233, and 234) 7. Inactive or expired programs (title VI, title VII, and title IX). 11.1 11.3 11.4 11.5 Total program costs, funded.. 8. Change in selected resources Total obligations.......... Financing: Unobligated balance lapsing........ Limitation. Proposed increase in limitation due to civilian pay increases__ Identification code 25-20-4070-0-3-551 Personnel compensation: Positions other than permanent.. Total personnel compensation. 12.0 21.0 Travel and transportation of persons.. 22.0 Transportation of things... 23.0 Rent, communications, and utilities. 24.0 Printing and reproduction.. 25.1 Other services.. Fee appraisals. 26.0 Supplies and materials. 31.0 Equipment.......... 42.0 Insurance claims and indemnities. Total costs, funded.. 94.0 Change in selected resources.. Object Classification (in thousands of dollars) Subtotal.. 93.0 Nonadministrative expenses included in schedule for fund as a whole............... Total obligations......- 1964 actual Personnel Summary Total number of permanent positions.. 8,374 4,352 1,062 158 2,527 74,369 1,893 76,262 58 76,320 245 76,565 1964 actual 56,613 336 2 1,276 58,227 4,298 4,164 108 5,103 625 835 441 445 1,981 35 76,262 58 76,320 8,118 53 7,830 7.8 $7,425 1965 1966 estimate estimate 8,116 5,965 1,341 241 2,774 79,425 350 79,775 79,775 78,000 1,775 1965 estimate 61,561 389 1,071 63,021 4,651 4,248 111 5,266 703 940 465 350 20 79,775 -76,320-79,775 8,155 57 7.952 7.8 $7,846 8,348 6.412 1,271 331 2,395 80,500 350 80,850 80,850 80,850 1966 estimate 61,904 523 1,323 63,750 4,675 4,341 112 5,377 750 975 478 350 42 79,775 80,850 -80.850 80,850 8.050 76 7,920 7.8 $7,923 |
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