HEARINGS BEFORE THE COMMITTEE ON BANKING AND CURRENCY SEVENTY-FIFTH CONGRESS SECOND SESSION ON H. R. 8520 TO AMEND THE NATIONAL HOUSING ACT AND FOR OTHER PURPOSES 33604 NOVEMBER 30, DECEMBER 1, 2, 3, 7, 8, 9, 10, 1937 UNITED STATES WASHINGTON: 1937 2 Mr. Stewart McDonald, Federal Housing Administrator. Mr. Ernest M. Fisher, Director of Economics and Statistics, Federal Mr. Jesse H. Jones, Chairman, Board of Directors, Reconstruction Mr. Abner H. Ferguson, General Counsel, Federal Housing Adminis- Mr. Marriner S. Eccles, Chairman, Board of Governors, Federal Re- Mr. C. Wylie Allen, Chief, Savings Section, Federal Housing Admin- Mr. Miles L. Colean, director of rental, Federal Housing Administra- Mr. Clyde L. Powell, assistant deputy administrator, Federal Housing Mr. Theodore B. Nickson, Comptroller, Federal Housing Administra- Mr. Robert V. Fleming, president, Riggs National Bank, Washington, Hon. Robert Ramspeck, Member of Congress from the State of 240 III AMENDMENTS TO NATIONAL HOUSING ACT TUESDAY, NOVEMBER 30, 1937 HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The committee met at 10:30 a. m., Hon. Henry B. Steagall (chairman) presiding. Present: Messrs. Steagall, Goldsborough, Reilly, Hancock, Williams, Spence, Meeks, Ford of California, Brown, McKeough, Evans, Transue, Wolcott, Fish, Gifford, Luce, Crawford, Gamble. The CHAIRMAN. The committee will be in order. Gentlemen, we have before us H. R. 8520, which is the administration housing bill. The measure was explained more or less in detail in the President's message. I am not going to take the time of the committee to make any statement myself now. (H. R. 8520 is reproduced below in full as follows:) [H. R. 8520, 75th Cong., 2d sess.] A BILL To amend the National Housing Act, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That titles I, II, III, and V of the National Housing Act, as amended, be further amended as follows: SEC. 2. Section 201 of title II is amended by striking out the words "As used in this title" and inserting in lieu thereof the words "As used in section 203 of this title"; and by amending subsection (a) of such section to read as follows: "(a) The term 'mortgage' means a first mortgage on real estate, in fee simple, or on a leasehold (1) under a lease for not less than ninety-nine years which is renewable; or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed, and the term 'first mortgage' means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State, district, or Territory in which the real estate is located, together with the credit instruments, if any, secured thereby." SEC. 3. Section 201 of title II is further amended by adding thereto the following subsection (c) as follows: "(c) The term 'maturity date' means the date on which the mortgage would mature if paid in accordance with periodic payments provided for therein." SEC. 4. Section 202 of title II is amended by inserting immediately following the word "title" as it appears first in said section the words “with respect to mortgages insured under section 203." SEC. 5. Section 203 (a) of title II is amended to read as follows: "SEC. 203. (a) The Administrator is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage offered to him which is eligible for insurance as hereinafter provided, and, upon such terms as the Administrator may prescribe, to make commitments for the insuring of such mortgages prior to the date of their execution or disbursement thereon: Provided, That, except with the approval of the President, the aggregate outstanding principal obligation of all mortgages insured under this title shall at no time exceed $2,000,000,000: And provided further, That on and after July 1, 1939, no mortgages shall be eligible for insurance under this title except mortgages that cover 1 |