TABLE 7.-Federal Savings and Loan Insurance Corporation-Statement of operations for the calendar years 1953 and 1952 PART III OF THE Seventh Annual Report HOUSING AND HOME FINANCE AGENCY Covering the Activities of the FEDERAL HOUSING ADMINISTRATION LETTER OF TRANSMITTAL To the Congress of the United States: In accordance with Section 5 of the National Housing Act as amended, I transmit herewith the Twentieth Annual Report of the Federal Housing Administration. This report covers the calendar year 1953. Respectfully, NORMAN P. MASON, Functions of the Federal Housing Administration Under authority of the National Housing Act of June 27, 1934, as amended, the Federal Housing Administration operates insurance programs designed to encourage improvement in housing standards and conditions and the creation of a sound mortgage market. The FHA makes no loans and does not plan or build Lousing. As provided by the President's Reorganization Plan No. 3 of 1947, the FHA is a constituent unit of the Housing and Home Finance Agency. The following statement summarizes the various types of FHA insurance that were in effect at the end of 1953. Modifications of the FHA program made by the Housing Act of 1954 (Public Law 560, 83d Cong., approved Aug. 2, 1954) are not reflected in this summary. Title I Section 2 of Title I of the Act authorizes the FHA to insure qualified lending institutions against loss on loans made to finance the alteration, repair, improvement, or conversion of existing structures, and the building of small new non-residential structures. Section 8 of Title I, added to the Act in 1950, authorizes the insurance of mortgages on new single-family dwellings for families of low and moderate income, particularly in suburban and outlying areas. Title II Section 203 of Title II authorizes the insurance of mortgages on new and existing 1- to 4-family dwellings. Activity under this section accounts for the largest share of FHA insurance written since 1934. Section 207 of Title II authorizes the insurance of mortgages, including construction advances, on rental housing projects. Mortgages on projects of 12 or more units are insured. Section 213, added to Title II in 1950, authorizes the insurance of mortgages on cooperative housing projects. Mortgages on projects of 12 or more units are insured. In a sales-type project (one built by a nonprofit corporation or trust organized for the purpose of building homes for members), the individual homes may be released from the blanket mortgage on the project and individual mortgages on these homes may be insured under Section 213. This section also authorizes the FHA to furnish technical advice and assistance in the organization of the cooperatives and in the planning, development, construction, and operation of their housing projects. Title VI Sections 603 and 608 of Title VI were enacted in 1941 and 1942, respectively, to aid the production of war housing through mortgage insurance provisions somewhat more liberal than those under Sections 203 and 207. Sections 603 and 608 became inactive after the war ended, but were reenacted in the Spring of 1946 as part of the Veterans' Emergency Housing Program. The authority to issue commitments of mortgage insurance on new construction under Section 603 expired April 30, 1948, and new-construction commitments under Section 608 were limited to those for which applications were received on or before March 1, 1950. |