Investments Section 207 (p) of the National Housing Act provides that excess moneys not needed for current operations under the Housing Insurance Fund shall be deposited with the Treasurer of the United States to the credit of the Housing Insurance Fund or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States, or with the approval of the Secretary of the Treasury used for the purchase of debentures issued under Section 207 and Section 204. During 1948, upon the request of the FHA, the Treasury redeemed at par $2,000,000 of 2percent special United States Treasury notes and the proceeds were used to redeem, by call, $2,000,000 of series D 234-percent debentures. On December 31, 1948, the fund held United States Treasury bonds and notes in the amount of $2,438,322, as follows: Investments of the Housing Insurance Fund, Dec. 31, 1948 Property Acquired under the Terms of Insurance No additional rental housing projects were acquired by the FHA Commissioner under the terms of insurance in 1948. Through 1948, a cumulative total of 16 rental housing projects and one mortgage note insured under the Housing Insurance Fund had been acquired, in exchange for which debentures and cash adjustments had been issued in the amount of $14,661,895. The 16 projects and the mortgage note had been sold at an estimated loss to the Housing Insurance Fund of $47,795. In addition to the rental housing projects acquired under the Housing Insurance Fund, one Section 207 project, insured under the Mutual Mortgage Insurance Fund, had been acquired and sold at no loss to that fund. STATEMENT 14.-Statement of profit and loss on sale of acquired projects, Certificates of Claim and Refunds to Mortgagors Certificates of claim issued in connection with the 16 projects and one mortgage note which had been sold under the Housing Insurance Fund through 1948 totaled $290,400. Net proceeds of sale had been sufficient to provide an excess for the full or partial payment of 14 certificates of claim, and the remaining 3 certificates of claim had been or will be canceled in full. The amount paid or to be paid on these certificates totaled $195,350, and the amount canceled, $95,050. In addition there were excess proceeds on 6 projects for refund to mortgagors in the amount of $191,408. The certificate of claim issued in connection with the only rental housing project acquired under the Mutual Mortgage Insurance Fund amounted to $31,532. This certificate of claim had been paid in full, with increment thereon in the amount of $1,255. Title VI: War Housing Insurance Fund The insurance risks on privately financed emergency housing loans insured under Title VI are liabilities of the War Housing Insurance Fund, established by the amendment to the National Housing Act of March 28, 1941. Section 603 of Title VI authorizes the insurance of small-home mortgages (one- to four-family); Section 608 the insurance of mortgages on rental and group housing; Section 609 the insurance of loans to finance the manufacture of housing; and Section 610 the insurance under Sections 603 and 608 of any mortgage executed in connection with the sale by the Government of permanent war housing acquired or constructed with public funds under the Lanham Act and certain related war acts. Section 611, added to Title VI by an amendment approved August 10, 1948, authorizes the insurance of mortgages, including construction advances, on projects of 25 or more single-family dwellings. The War Housing Insurance Fund was originally allocated the sum of $5,000,000 by the Federal Government. It has been credited with all income received in connection with insurance granted under Title VI, and has been charged with all expenses and losses relating to such insurance. This is not a mutual fund, and any balance remaining in the fund after all Title VI expenses and insurance claims have been met will revert to the General Fund of the Treasury. Limitation on Title VI Insurance Liability As of December 31, 1948, Section 603 (a) of the National Housing Act provided that the aggregate amount of principal obligations of mortgages insured under Title VI shall not exceed $5,750,000,000, except that with the approval of the President such aggregate amount may be increased to $6,150,000,000. This limitation applies to insurance granted on mortgages insured under Section 603 for small homes: under Section 608 for rental housing projects; under Section 609 on loans to finance the manufacture of housing; and under Section 611 for group housing. In addition to the above authorization, the act provides that the aggregate amount of principal obligations of all mortgages insured pursuant to Section 610 (mortgages insured under Section 603 or 608 in connection with the sale of Government housing acquired or con structed with public funds under the Lanham and certain related war acts) shall not exceed $750,000,000. The status of the Title VI insurance limitation at December 31, 1948 was calculated as follows: Status of Title VI insurance limitation Aggregate principal amount of obligations which may be insured under limitation as of Dec. 31, 1948. War Housing Insurance Fund Capital Assets of the War Housing Insurance Fund as of December 31, 1948, totaled $45,699,064, against which there were outstanding liabilities of $4,359,089. Operating reserves for possible future insurance losses and expenses had been established out of surplus in the amount of $36,339,975, and the fund had net capital of $5,000,000, making total capital and operating reserves of $41,339,975. · STATEMENT 15.-Comparative statement of financial condition, War Housing Insurance Fund, as of Dec. 31, 1947 and Dec. 13, 1948 |