CONSIDERATION OF H. R. 940

JULY 11, 1949. Referred to the House Calendar and ordered to be printed

Mr. SABATH, from the Committee on Rules, submitted the following

REPORT

[To accompany H. Res. 279]

The Committee on Rules, having had under consideration House Resolution 279, report the same to the House with the recommendation that the resolution do pass.

CONSIDERATION OF H. R. 940

JULY 11, 1949.-Referred to the House Calendar and ordered to be printed

Mr. SABATH, from the Committee on Rules, submitted the following

REPORT

[To accompany H. Res. 279)

The Committee on Rules, having had under consideration House Resolution 279, report the same to the House with the recommendation that the resolution do pass.

1st Session

No. 1009

INCREASING THE MORTGAGE PURCHASE AUTHORITY OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION

JULY 11, 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. SPENCE, from the Committee on Banking and Currency, submitted the following

REPORT

(To accompany H. R. 5533)

The Committee on Banking and Currency, to whom was referred the bill (H. R. 5533) to amend the National Housing Act, as amended, and the Reconstruction Finance Corporation Act, as amended, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass.

The amendment is as follows:

Page 1, line 5, after "investments," insert "loans,".

GENERAL STATEMENT

Under existing law the Federal National Mortgage Association, a subsidiary of the Reconstruction Finance Corporation, is authorized to purchase FHA title II and title VI insured mortgages and VA guaranteed mortgages under section 501, 502, or 505 (a) of the Servicemen's Readjustment Act of 1944, as amended, under the limitations contained in title III of the National Housing Act, as amended.

The Federal National Mortgage Association under existing law is authorized to issue and have outstanding at any time notes or other obligations in an aggregate amount of 40 times its capital and surplus to obtain funds to purchase or make a secondary market for eligible mortgages. Under this authority the Federal National Mortgage Association can purchase such mortgages in an amount of approximately $1,000,000,000. As of July 6, 1949, mortgages purchased and commitments to purchase mortgages by Federal National Mortgage Association had exhausted the authorized authority and it was necessary for the Association to advise the field offices that until further notice it would be necessary to suspend the making of any new commitments.