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unable to complete arrangements to market the mortgage elsewhere at the FNMA purchase price and (b) is unable to complete arrangements to market an 80-percent participation and undivided interest therein conditioned upon FNMA's entry into its usual commitment and participation contract covering a 20-percent immediate participation in the mortgage.

3. With each application (offer of a commitment and participation contract) covering a 20-percent immediate participation in a mortgage seller must submit letters from at least two mortgage-lending institutions normally engaged in the purchase of mortgages of the same type to evidence that seller is unable to complete arrangements to market the mortgage elsewhere at the FNMA purchase price.

4. The acceptability requirements contained in sections 614 and 615 of the sellers' guide relating to amount of mortgage and closing costs and prepaid items, respectively, are waived as to mortgages purchased by FNMA under this program, except that the amount of the mortgage shall in no event exceed the VA or FHA valuation.

[Pt. X, FNMA Sellers Guide, Program No. 1-A) FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-A

(Effective November 1, 1954)

(Amended May 1, 1955) Purpose of program

Special assistance program 1-A supplements the terms and conditions governing the conduct by the Federal National Mortgage Association of its special assistance functions relating to disaster housing mortgages as announced in special assistance program No. 1, in the following respects : Areas covered and duration of program

The disasters included in, and the affected areas covered by special assistance program No. 1-A, and the duration of the program are as follows:

(a) the areas in the State of Maine affected by Hurricane Carol and Edna prior to the President's declaration on September 13, 1954; this program will expire on September 30, 1955;

(b) the areas in the State of Rhode Island and the Commonwealth of Massachusetts affected by Hurricane Carol and Edna prior to the President's declaration on September 14, 1954; this program will expire on September 30, 1955;

(c) the areas in the State of Connecticut affected by Hurricane Carol and Edna prior to the President's declaration on September 17, 1954; this program will expire on September 30, 1955.

(d) the areas of Suffolk County, N. Y., affected by Hurricane Carol prior to the President's declaration on October 7, 1954; this program will expire on October 31, 1955. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special assistance program No. 1-A, will be at the following rates : Mortgages

98 20 percent immediate participations in mortgages

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

[Pt. X, FXMA Sellers Guide, Program No. 1-B] FEDERAL XATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-B

(Effective November 1, 1954)

(Amended May 1, 1955) Purpose of program

Special assistance program No. 1-B supplements the terms and conditions governing the conduct by Federal National Mortgage Association of its special

assistance functions relating to disaster housing mortgages as announced in special assistance program No. 1, in the following respects : Areas covered and duration of program

The disasters included in, and the affected areas covered by special assistance program No. 1-B, and the duration of the program are as follows:

(a) the areas in the States of North Carolina and South Carolina affected by Hurricane Hazel prior to the President's declaration on October 17, 1954; this program will expire on October 31, 1955;

(b) the areas in the State of Maryland affected by hurricane Hazel prior to the President's declaration on October 18, 1954; this program will expire on October 31, 1955;

(c) the areas in the Commonwealth of Pennsylvania affected by floods prior to the President's declaration on October 22, 1954; this program will expire on October 31, 1955;

(d) the areas in the State of Indiana affected by floods prior to the President's declaration on October 26, 1954; this program will expire on October 31, 1955. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special assistance program No. 1-B will be at the following rates : Mortgages

98 20 percent immediate participations in mortgages-

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

[Pt. X, FNMA Sellers Guide, Program No. 1-C)

FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-0

(Effective June 6, 1955)

Purpose of program

Special assitance program No. 1-C supplements the terms and conditions governing the conduct by Federal National Mortgage Association of its special assistance functions relating to disaster housing mortgages as announced in special assistance program No. 1, in the following respects: Areas corered and duration of program

The disaster included in, and affected areas covered by special assistance program No. 1-C, and the duration of the program are as follows:

the areas in the State of Kansas affected by tornado prior to the President's

declaration on May 27, 1955; this program will expire on June 30, 1956. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special assistance program No. 1-C will be at the following rates : Mortgages

98 20 percent immediate participations in mortgages-

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

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[Pt. X, FNMA Sellers Guide, Program No. 1-D] FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-D

(Effective June 8, 1955) Purpose of program

Special assistance program No. 1-D supplements the terms and conditions governing the conduct by Federal National Mortgage Association of its special assistance functions relating to disaster housing mortgages as announced in special assistance program No. 1, in the following respects : Areas covered and duration of program

The disaster included in, and affected areas covered by special assistance program No. 1-D, and the duration of the program are as follows:

the areas in Jefferson County, Okla., affected by floods and hailstorms, and the areas in Kay County, Okla., affected by flood and tornado, prior to the President's declaration on June 1, 1955; this program will expire on June 30,

1956. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special assistance program No. 1-D will be at the follwing rates : Mortgages--

98 20 percent immediate participations in mortgages.

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

[Pt. X, FNMA Sellers Guide, Program No. 1-E]

FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-E

(Effective August 24, 1955) Purpose of program

Special assistance program No. 1-E supplements the terms and conditions governing the conduct by Federal National Mortgage Association of its special assistance functions relating to disaster housing mortgages as announced in special assistance program No. 1, in the following respects : Areas covered and duration of program

The disasters included in, and the affected areas covered by special assistance program No. 1-E, and the duration of the program are as follows:

(a) the areas in the State of North Carolina affected by Hurricane Connie prior to the President's declaration on August 13, 1955; this program will expire August 31, 1956.

(b) The areas of Albuquerque, Bernalillo and the municipalities along the Rio Grande, in the State of New Mexico affected by recurring flash floods prior to the President's declaration on August 17, 1955; this program will expire August 31, 1956.

(c) The areas in the States of Connecticut, Massachusetts, New Jersey, North Carolina, southeastern New York, eastern Pennsylvania, the counties of Georgetown and Horry in the State of South Carolina, and the County of Providence in the State of Rhode Island affected by floods and storm damage attendant upon hurricane Diane prior to the President's declarations on August 20, 22, and 24, 1955 ; this program will expire August 31, 1956. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special assistance program No. 1-E will be at the following rates : Mortgages

98 20 percent immediate participations in mortgages.

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

[Pt. X, FNMA Sellers Guide, Program No. 1-F] FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-F

(Effective September 23, 1955) Purpose of program

Special assistance program No. 1-F supplements the terms and conditions governing the conduct by Federal National Mortgage Association of its special assistance functions relating to disaster housing mortgages as announced in special assistance program No. 1, in the following respects : Areas covered and duration of program

The disaster included in, and the affected areas covered by special assistance program No. 1-F, and the duration of the program are as follows:

The areas in the State of North Carolina affected by Hurricane Ione prior to the President's declaration on September 20, 1955; this program will expire September 30, 1956. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special assistance program No. 1-F will be at the following rates : Mortgages

98 20 percent immediate participations in mortgages---

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

[Pt. X, FNMA Sellers Guide, Program No. 1-G] FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE PROGRAM No. 1-G

(Effective October 28, 1955) Purpose of program

Special assistance program No. 1-G supplements the terms and conditions goyerning the conduct by Federal National Mortgage Association of its special assistance functions relating to disaster housing mortgages as announced in special assistance program No.1, in the following respects : Areas covered and duration of program

The disaster included in, and the affected areas covered by special assistance program No. 1-G, and the duration of the program are as follows:

(a) The areas in the States of Connecticut, New Jersey, and New York affected by heavy rains and floods prior to the President's declaration on October 17, 1955 ; this program will expire on October 31, 1956.

(0) The areas in the Commonwealths of Massachusetts and Pennsylvania affected by heavy rains and floods prior to the President's declaration on October 18, 1955; this program will expire on October 31, 1956. Purchase price

The prices that FNMA will pay for mortgages and 20 percent immediate participations in mortgages under this special-assistance program No. 1-G will be at the following rates : Mortgages--

98 20 percent immediate participations in mortgages.

99 With respect to each 20 percent immediate participation in a mortgage, the related deferred participation agreement will provide for the purchase of the outstanding 80 percent interest at the rate of 99.

Senator LEHMAN. Our next witness is Under Secretary Walter Williams, Department of Commerce.

STATEMENT OF WALTER WILLIAMS, UNDER SECRETARY,

DEPARTMENT OF COMMERCE

Mr. WILLIAMS. I am Walter Williams, Under Secretary of Commerce. I am very glad to have an opportunity to appear before this committee to express the views of the Department of Commerce with respect to a Federal flood-insurance program.

I might interpolate in this brief statement that in company with my associates, Sinclair Weeks, Secretary of Commerce, and Lothair Teetor, Assistant Secretary of Commerce for Domestic Affairs, we inspected the New England flood area and the Pennsylvania and New York flood areas at the time of the disaster, and we had the same impressions that have been expressed by others here today. And we resolved right then and there we were going to make the facilities of the Department available in every way we possibly could to alleviate the difficulties. We called upon the Governor of Connecticut first and had a very satisfactory conference there. We then went over to Providence where we met with the Governor of Rhode Island and then up to Massachusetts where we met with Governor Herter. In all those three places we exchanged views, letting them know what we felt as a Department of the Federal Government we could do to help them, and also to get from them expressions of the conditions which they were confronted with.

The Department of Commerce has today issued a press release summarizing the damage caused by the floods of August 17–19 in sis northeastern States. We would like to make this release available to the committee.

Senator LEHMAN. I have a copy of the release, and it will be inserted in the record.

(The release referred to follows:)

[For release in a. m. papers, Monday, October 31, 1955)

UNITED STATES DEPARTMENT OF COMMERCE

SINCLAIR WEEKS, SECRETARY

WASHINGTON 25, D. C.

merce.

Business and Defense Services Administration

BD-574 BDSA REPORTS FINAL FLOOD DAMAGE SUMMARY The floods of August 17-19 took a toll of 179 deaths and caused damage of $457,674,044 in 6 Northeastern States according to a final summary by the Business and Defense Services Administration, United States Department of Com

In the breakdown of figures gathered by the Federal Civil Defense Agency and various State and local agencies, 6,992 persons suffered major injuries and 813 homes were destroyed.

Connecticut sustained total damage estimated at $215,215,004. This was broken down as follows: Industrial, $83,870,958 ; commercial, $12,601,150; roads and highways, $26,232,900 ; homes and dwellings, $23,953,454; public utilities, $29,701,526; farms, crops, and lands, $2,424,000; and miscellaneous, $6,461,016. Connecticut reported 77 deaths, 6,773 major injuries, and 563 hoines destroyed.

In Massachusetts total damage was $110,412,808. This was broken down to industrial, $55,000,000 ; commercial, $5,410,008; roads and highways, $23,476.000; homes and dwellings, $197,500; public utilities, $25,000,000 : farms, crops, and lands, $1,329,300. In this State there were 12 deaths, 77 major injuries, and 97 homes destroyed.

In New Jersey total damage was $27,525,532. Industrial (lamage was esti. mated at $1,250,000 ; commercial damage was not reported. Roads and highways, $8,300.000; railroads and railroad bridges, $825,000 ; homes and dwellings,

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