McGrath, Joseph, legislative counsel, National Association of Home Mitchell, C. R., United States Savings & Loan League.. Newcomb, Robinson, Washington, D.C. Page 167 102 118 O'Keefe, Raymond T., vice president, Chase Manhattan Bank- 72 155 Rogg, Dr. Nathaniel H., vice president, National Association of Home 167 Ross, William B., Deputy Under Secretary for Policy Analysis and Program Schwartz, Harry S., adviser to the Board, Federal Home Loan Bank Sherbourne, Everett C., vice president, National League of Insured Sav- Slipher, Stephen, legislative director, United States Savings & Loan League Weiner, Leon N., president, National Association of Home Builders.... 169 155 116 28 Treasury American Bankers Association, statement of Clarence Liller, Jr. Ensley, Dr. Grover W., National Association of Mutual Savings Banks: Prepared statement... Excerpts entitled "Primitive Shacks Abound Among the Mansions" and Federal Housing Administration, letter to committee from P. N. Brown- 236 204 172 24 211 Federal Reserve Board, paper prepared by Robert Fisher, Senior Economist, "Recommendations or Suggestions of Contributors to Study of Mortgage Credit" 269 Frank, Anthony N., statement submitted for the record 129 Freeman, Orville L., Secretary of Agriculture, letter to Representative 28 Heimann, John, vice president, Warburg & Co., prepared statement. Home Manufacturers Association, statement of Frank P. Flynn, chairman, mortgage credit committee.. 179 158 Indiana University, statement of Edward E. Edwards_ 108 Income and value data for FHA-insured home mortgage, 1963-66- 21 155 Investors Central Management Corp., statement of Arthur W. Viner, president 177 Kotz, Nick, article by, in Minneapolis Tribune 24 Page Labor Review, excerpts from.. 229 Maisel, Sherman J., member, board of governors, Federal Reserve System, letter to Mr. Art Weimer___ 109 Minneapolis Tribune, letter from Andrew R. Carr, president, board of directors, Coahoma Opportunities, Inc. 29 Mortgage Bankers Association, statement of John de Laittre... 2242 72 167 National Association of Mutual Savings Banks, statement of Dr. Grover National Association of Housing and Redevelopment Officials, statement of 153 172 National Association of Real Estate Boards, statement of Philip C. 175 Letter to Senator Sparkman.. Statement of Angus McDonald, director or research. National Farmers Union: National Housing Conference, statement of Nathaniel S. Keith, president. 228 142 134 105 Newcomb, Robinson, prepared statement... Additions and removals, April 1950 to December 1959. 259 At the current rate even the backlog of housing need could not be eliminated in this generation---- 233 Average unit size__. 263 Comparison of loan equity.. Composition of the population in 1964 and 1970-- Direct aid for low- and moderate-income households provided by present legislation probably leaves most such households in substandard housing in 1969 Distribution by property valuation of home mortgages insured by FHA under section 203, 1963–1966__. Page 35 266 232 23 Distribution by total monthly family income of home mortgages_. Excessive reliance on monetary policy to combat inflation in 1966 brought ... 22 215 Financial structure of mutual savings banks, 1966 and 1956. Growth in the number of accounts at savings banks was the largest since Income and value data for FHA-insured home mortgages, 1963-66–– Marital characteristics of the population, 1964 and 1970_. Mortgage flows fell sharply and corporate and U.S. Government security issues rose substantially. 217 Mortgage flows and construction volume__ 248 Mortgage yield advantage declined sharply in early 1967 after widening rapidly in 1966__. 220 Net flow of credit and equity funds, 1965 and 1966. 217 Net charges in total deposits in mutual savings banks, by States, 1965-66 and 1958-59__. 222 Net removals from the housing stock-- 258 Net uses and sources of savings bank funds, 1957-66‒‒‒‒ 222 23 Percentage distribution by total monthly family income of home mortgages Relationship of mortgage holdings and earnings to personal loan holdings in Massachusetts mutual savings banks, 1965_-. 210 Relationship of mortgage holdings and earnings to personal loan holdings in New Hampshire mutual savings banks, 1966_- 209 Savings account growth recovered in late 1966 as direct investment by consumers declined---- 219 Savings bank conventional mortgage rates leveled off before those of other lenders while fees remained low in 1966__. 224 Savings bank deposit growth slackened in 1966 as withdrawals rose more rapidly than new savings____ 220 Savings bank deposit interest rates rose sharply from the end of 1965 to the end of 1966 226 Savings bank local conventional mortgage flows remained high in 1966 Savings bank earnings and interest payments increased in 1966 as a percentage of average deposits_-_ Page 226 223 223 Savings flows at deposit-type institutions rose sharply in early 1967. 219 233 143 Upturn in deposit gains at New York City savings banks after mid-1966 was followed by recovery in other areas in late 1966 and early 1967--Vacancies added by 1970_. 221 257 Vacant units at yearend__. 255 Vacancy rates: 1965--- 256 Vacancy rates have scarcely changed in 15 years__. Volume and value of a hypothetical 4-year housing program to eliminate 231 234 232 246 MORTGAGE CREDIT MONDAY, JUNE 12, 1967 U.S. SENATE, COMMITTEE ON BANKING AND CURRENCY, SUBCOMMITTEE ON HOUSING AND URBAN AFFAIRS, Washington, D.C. The subcommittee met at 10 a.m. in room 5302, New Senate Office Building, Senator William Proxmire presiding. Present: Senators Sparkman (chairman of the committee), Proxmire, Muskie, and Mondale. Senator PROXMIRE. The Housing Subcommittee of the Banking and Currency Committee will come to order. Before we begin, I would appreciate it if the entire panel would come up to the table, not only for the purposes of convenience and expedition, but also to have a better colloquy and a more stimulating give and take among the members of the panel. So I would appreciate it if Mr. Dervan and Mr. Bertsch would join Mr. Weaver and his associates. Mr. Dervan, would you bring your assistant? The hearings today are the beginning of a second phase of the Housing Subcommittee's study of mortgage credit. The first phase was completed upon the publishing of a compendium of 30 papers written by Government, industry, and private individuals on the subject. The purpose of the study is to learn all we can about the deplorable 1966 mortgage credit experience and to obtain recommendations on the action to take to avoid recurrence of this experience and to provide an adequate flow of mortgage credit to meet the housing needs of our expanding population. Since 1950 we have had four so-called tight-money periods with serious adverse effects on the availability of mortgage credit for home financing. The 1966 experience was the worse in sharpness of decline of credit and reduction in housing starts. New residential mortgage credit was $7 billion less in 1966 than in 1965, and housing starts were off 19 percent from the previous year. A serious byproduct of the credit shortage was the exorbitantly high interest rates charged home buyers during this period. The national average reached 6.5 percent with some areas having contract rates well over 7 percent. The discount point system became widely used, not only for FHA and VA loans, but also for conventional loans. Discount charges generally were made to increase the yield on fixed interest rate mortgages, but in many cases points were paid to the mortgage broker as a finder's fee. |