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6. All assets, contracts, and property (including office equipment and records) of any agency hereby consolidated, and all assets, contracts, and property (including office equipment and records) which other agencies, including departments, have been using primarily in the administration of any function, power, or duty hereby consolidated or transferred, are hereby transferred, respectively, with such agency, function, power, or duty.

7. Except as provided in paragraph 8, hereof, (1) all personnel of any agency hereby consolidated, and (2) all personnel of other agencies, including departments, who have been engaged primarily in the administration of any function, power, or duty hereby consolidated or transferred and who within thirty days after the appointment or designation of the National Housing Administrator are jointly certified for transfer by said Administrator and the head of the department or agency to which such personnel is attached, shall be transferred, respectively, with such agency, functions, power or duty; but any personnel transferred with functions, powers, or duties pursuant to this paragraph who are found by the National Housing Administrator to be in excess of the personnel necessary for the administration of such functions, powers, and duties shall be retransferred under existing law to other positions in the Government or separated from the service. 8. The following personnel are not transferred hereunder: (1) The Directors and Officers of the Defense Homes Corporation, (2) the members of the Federal Home Loan Bank Board other than the Chairman, (3) the Directors of the Home Owners' Loan Corporation, and (4) the Trustees of the Federal Savings and Loan Insurance Corporation. The offices of the foregoing personnel excepted from transfer by this paragraph (except in the case of the Defense Homes Corporation) are hereby vacated for the duration of this order: Provided, That the offices of the members of the Federal Home Loan Bank Board shall not be vacated until sixty days from the date of this order. The personnel of the Division of Defense Housing Coordination and of the Central Housing Committee are not transferred hereunder, except that the National Housing Administrator, within 60 days after his appointment or designation, may take over such of this personnel as are needed. During such period, all personnel of such Division and of such Committee may be retained by them in connection with the winding up of their affairs.

9. So much of the unexpended balances of appropriations, authorizations, allocations, or other funds (not otherwise transferred hereunder) available for the use of any agency to the exercise of any function, power, or duty consolidated by this order, or for the use of the head of any department or agency in the exercise of any such function, power, or duty, as the Director of the Bureau of the Budget shall determine (with the approval of the President), shall be transferred, respectively, to the National Housing Agency or the main constituent unit therein concerned, for its use in connection with the exercise of the functions, powers, or duties, respectively, to be administered by it hereunder. In determining the amount to be transferred, the Director of the Bureau of the Budget may include an amount to provide for the liquidation of obligations incurred against such appropriations, authorizations, allocations, or other funds prior to transfer.

10. All housing now owned by the United States and located on a military or naval reservation, post, or base is hereby transferred to the jurisdiction of the War or Navy Department, respectively, having jurisdiction of such reservation post, or base: Provided, That with respect to all housing developed by the War or Navy Department under Title II of Public, 671, approved June 28, 1940, the Federal Public Housing Authority shall take all necessary steps to transfer such jurisdiction and carry out the purpose hereof, including the transfer of title to the United States and including repayment (out of any funds available therefor) of the cost of such housing for reimbursement of the Bond Account from which funds were transferred to pay such costs.

11. The Director of the Bureau of the Budget shall allocate to the National Housing Agency, from appropriations, authorizations, allocations, or other funds available for the administrative expenses of the Federal Loan Agency and the Federal Works Agency (relating to the administration of the agencies and functions transferred there from hereunder) and of the agencies and functions, powers, and duties consolidated hereunder, such sums, and in such proportions, as he may find necessary for the administrative expenses of the National Housing Agency. None of the agencies established or consolidated hereunder shall incur any obligations for administrative expenses except pursuant to appropriations, allocations, or other authorizations of funds specifically available now or hereafter for administrative expenses.

12. The National Housing Administrator may appoint necessary personnel and make necessary expenditures to carry out the functions, powers, and duties of the

National Housing Agency. The Administrator and the Commissioners hereunder may delegate their respective functions, powers, and duties to such agencies, officials, or personnel as they may designate, respectively. Until the appointment or designation of a National Housing Administrator, the Commissioners respectively shall exercise such of the functions, powers, and duties of the National Housing Administrator as relate to the agencies, functions, powers, and duties to be administered by such Commissioners, respectively.

13. Nothing herein shall impair or affect any outstanding obligations or contracts of any agency consolidated hereunder or of the United States of America (including its pledge of faith to the payment of all annual contributions now or hereafter contracted for pursuant to the United States Housing Act, as amended), or of any insurance funds created under the National Housing Act.

14. All orders, rules, regulations, permits, or other privileges made, issued or granted by or in respect of any agency, function, power, or duty consolidated hereunder shall continue in effect to the same extent as if such consolidation had not occurred until modified, superseded, or repealed, except that the regulations of January 11, 1941, relating to defense housing coordination shall hereby be revoked upon the appointment or designation of the National Housing Administrator.

15. All unexpended balances of appropriations, authorizations, allocations, or other funds transferred under this order shall be used only for the respective purposes and in the administration of the respective functions for which such funds were made available.

16. Transfers of avilable funds under this order shall include funds available for the fiscal year ending June 30, 1943.

17. This order shall become effective as of the date hereof and shall be in force and effect so long as Title I of the First War Powers Act, 1941, remains in force. FRANKLIN D. ROOSEVELT.

THE WHITE HOUSE, February 24, 1942.

TABLE XIV-D.-NHA's role in home financing (1- to 4-family nonfarm residential


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* Represents necessary additional advances to existing borrowers, and mortgages taken back on repossessed operties sold.

3 Loans made by Federal home loan bank members insured by FHA.

Sources: Federal Housing Administration and Federal Home Loan Bank Administration. Data on ederal home loan bank members relate to savings and loan association membership.

National Housing Agency, Office of the Administrator, Housing Finance Division. Dec. 30, 1944.


The National Housing Agency-A descriptive analysis of the basic permanent housing functions being administered by iis 3 constituent units under the general direction and supervision of its Administrator 1

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Federal Home Loan Bank Administration (adminis-
ters functions formerly in Federal Home Loan Bank
Board (FHLBB); Home Owners' Loan Corpora-
tion (HOLC); and Federal Savings and Loan Insur-
ance Corporation (FSLIC))

Federal Housing Administration

Federal Home Loan Bank Act (1932) (FHLBB) National Housing Act (1934) (titles I, II, and (FHLBanks);

Home Owners' Loan Act of 1933 (HOLC) (Federal savings and loan associations);

Title IV, National Housing Act (1934) (FSLIC). To strengthen home-financing industry; assist in establishment on permanent basis of sound Nationwide home-financing structure; improve mortgage lending practices and operations; and place thrift and home ownership on broader and more secure basis.


To stabilize and strengthen home-mortgage market; stimulate flow of private capital into field of home financing; improve home-financing practices and procedures; place financing of home ownership and improvement on sound and economical basis; and stimulate employment.


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Local agencies and institutions eligible for participation and assistance:

(a) Types of local agencies and institutions eligible.

Title I: As insured lending institutions: Banks,
trust companies, personal finance companies,
mortgage companies, savings and loan asso-
ciations, installment lending companies, and
other such financial institutions.

Title II: (1) As insured mortgagees: Responsi-
ble lending institutions able to properly serv-
ice mortgages, such as commercial banks, in-
surance companies, mortgage companies, and
savings and loan associations. Federal and
State agencies are eligible.

(2) As mortgagors of rental projects: Statute
authorizes participation by (1) Federal or
State instrumentalities; (2) limited dividend
corporations; and (3) private corporations, as-
sociations, cooperative societies of owner-occu
pants, or trusts formed or created for the pur-
pose of rehabilitating slum or blighted areas,
or providing housing for rent or sale. Partici


(b) Role of participating

local agencies or

Forms and measure of as-
sistance given by NHA
constituent to participat-
ing local agencies or insti-

To provide credit incident to home ownership from
funds primarily received by them in their character
as mutual financial institutions and as the result of
the encouragement of thrift.

1. To FHLBank members: 12 regional FHLBanks,
created by FHLBB and operating under FHLBA
supervision, provide permanent reservoir of credit
for home financing operations of bank members and
for meeting withdrawal demands of savers and inves-
tors in such institutions. These banks perform
substantially same function in field of home mort-
gage credit as Federal Reserve banks perform as
credit reservoir for commercial banks and Federal
land banks perform in field of farm finance.

FHLBank advances are made to members for
terms not exceeding 10 years at interest rates ranging
from 12 to 3 percent on the security of-

(a) Home mortgages not exceeding $20,000 in
amount or 20 years to maturity (up to lesser of 65
percent of unpaid principal or 60 percent of value of
property if original term of mortgage is 6 years or
more on an amortized basis; otherwise percentages
are 50 and 40 percent, respectively);

(b) FHA insured (title II and title VI) mortgage
loans (up to 90 percent of unpaid principal); and
(c) Federal or federally guaranteed obligations
(up to face value).

Unsecured advances up to 1 year are made to members under certain conditions.

1 Statistical data in this chart are generally as of the end of 1943 or early 1944.

pants to date have been FHA regulated pri-
vate corporations formed for this specific pur-
(Title III: National mortgage associations char-
tered and supervised by FHA to provide ready
secondary market for mortgages against which
they would issue debentures in the open mar-
ket. Only one such association has been
created: The Federal National Mortgage As-
sociation, owned, operated, and staffed by

Title I: To make funds available to borrowers
at reasonable rates of interest and on moderate
terms of repayment to enable them to repair,
enhance the livability of, and, in certain cases,
own, their homes and to alter and improve
their places of business.

Title II: To make credit available, on the most
advantageous terms and adapted to meet
widely varying local conditions, for the financ-
ing of both home ownership and rental-project

Title I: Provides insurance against losses in-
curred on improvement and, to a limited ex-
tent, construction loans. Insurance is with
respect to aggregate of such loans made and
reported for insurance by participating insti-
tution and calls for FHA payment of losses in
an amount not exceeding 10 percent of aggre-
gate amount of such loans. Premium charge
is 34 of 1 percent per annum of net loan pro-
ceeds except for new residential construction
where charge is 1 of 1 percent.

Payment on losses is made by FHA in cash,
against assignment of debt, and security, if
any. (In case of new residential construction
loan, mortgagee must foreclose.)
Title II: Provides for insurance on first mortgage
loans made for (1) home construction, pur-
chase, or refinancing, and (2) construction of
rental projects. Premium charge (which may
be passed on to mortgagor) is 12 of 1 percent
per annum on outstanding balance.

In case of default, payment of loss is made
against conveyance of property to FHA (after
foreclosure by mortgagee) and takes the form

To construct, own, and operate low-rent
housing and slum clearance projects pro-
viding decent housing for the low-income
families in the community not being pro-
vided with such housing by private enter-
prise at rentals they can afford to pay.

3 forms of financial assistance are author-

1. Loans fully repayable with interest
(at 1⁄2 of 1 percent above "going Federal
rate" at time of contract) to finance not
more than 90 percent of capital cost of low
rent housing and slum clearance projects.
Period for repayment may not exceed 60
years. Most loan contracts are at a 21⁄2
percent interest rate. Under them,
FPHA has, on the average, been lending
33 of capital cost, to be repaid over 50 to
60-year periods.

2. Annual contributions to reduce
(together with required local contribu-
tions) rentals from amounts necessary to
meet annual expenses of project ("eco-
nomic rental") to amounts low-income
tenants can afford to pay ("social
rental"). These contributions are made
each year on a pay-as-you-go basis to
make possible the low-rent character of
project for that year; are subject to con-
tinuance of low-rent character of project;
are strictly limited to amounts and pe-


The National Housing Agency- A descriptive analysis of the basic permanent housing functions being administered by its 3 constituent units under the general direction and supervision of its Administrator-Continued

Forms and measure of as-
sistance given by NHA
constituent to participat-
ing local agencies or insti-

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2. To FHA approved mortgagees: FHLBanks are
authorized to make advances to FHA approved
mortgagees who are not bank members upon secur-
ity of FHA-insured title II mortgages (up to 90 per-
cent of unpaid principal). These advances may be
for terms not exceeding 10 years and are at interest
rates 1⁄2 of 1 to 1 percent higher than for similar ad-
vances to bank members.

3. To savings and loan associations: (a) Chartering,
regulation, and supervision by FHLBA of progres-
sive locally owned and managed associations to pro-
vide sound home thrift and financing facilities to
their communities. Such associations may be
newly created in communities not previously served
by institutions of savings and loan type or they may
be State chartered associations converted to feder-
ally chartered status at shareholders' request and
contingent upon certain limitations.

(b) Subscription by HOLC to shares of FHL
Bank member or FSLIC-insured associations for en-
couragement of local home financing (but not, when
added to certain Treasury share investment, in
excess of 75 percent of total share capital of any

(c) Insurance by FSLIC of accounts (up to $5,000)
of shareholders of Federal- and State-chartered asso-
ciations. Such insurance is compulsory for federally
chartered associations. Insured institutions pay
FSLIC (1) an equitable admission fee based on
FSLIC reserves (present fee is 100 of 1 percent of
shareholders' accounts plus creditor liabilities); and
(2) an annual premium of 18 of 1 percent of share-
holders' accounts and creditor liabilities, subject to
an assessment of an additional 4 of 1 percent if neces-
sary to meet FSLIC losses and expenses. Resultant

Federal Housing Administration

(1) negotiable debentures in amount of
unpaid principal plus certain adjustments
for tax payments and other expenditures
made by mortgagee; dated as of date fore-
closure proceedings were instituted; bearing
interest, payable semiannually, at 234 per-
cent per annum; maturing 3 years after the
1st day of July following maturity date of
the mortgage; guaranteed as to principal and
interest by the United States; and callable
at 3 months' notice at par and accrued inter-
est; and

(2) a certificate of claim in the amount of
unpaid earned interest and expenses incurred
by mortgagee in connection with foreclosure
and conveyance; providing for an increment
of 3 percent per annum (not compounded);
and payable only if and to the extent that
the net amount realized by FHA on the
property exceeds all its expenses (including
principal and interest paid on debentures).
Mortgagees on rental projects may, if default
is in meeting payments, elect, in lieu of fore-
closing, to assign the mortgage to FHA, in
which case 2 percent of unpaid principal is
deducted from the amount of debentures

Federal Public Housing Authority (admin-
isters functions formerly in United States
Housing Authority)

riods necessary to assure low-rent charac-
ter (and in any event to 60 years); may
not exceed 1 percent above the "going
Federal rate" of interest at the time of
contract, applied against the cost of the
project; and are subject to periodic reex-
amination as to amounts necessary.
Under most contracts to date, maximum
annual contribution payable is 3 percent
of project cost.

3. Capital grants, as an alternative
method of assistance to annual contribu-
tions. The provisions with respect to
these grants have been entirely dormant.

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