TABLE 18.-Title I housing insurance fund, sec. 8, statement of income and expense and changes in insurance reserves TABLE 19.-Outstanding balance of insurance in force, insurance reserves, and estimated reserve requirements in the servicemen's mortgage insurance fund 1 For mortgage insurance contracts in force. Adjusted for estimated unearned premiums to be retained after refunds of unearned premiums upon prepayment. 66225-61--15 Cumulative, June 30, 1960 June 30, 1960 June 30, 1959 June 30, 1958. June 30, 1957 June 30, 1956 June 30, 1955 TABLE 20.-Servicemen's mortgage insurance fund, statement of income and expense and changes in insurance reserves Net income or loss. 3. Net income before adjustment of valuation allowances. 4. Increase or decrease in valuation allowances: Allowance for estimated future losses on acquired properties and notes. 5. Net income as a percent of total income. 83, 082 (b) Recommendation. The premium rate for mortgage insurance for servicemen under section 222 is established under section 203 but for the period of time the owner of the property is a serviceman, the premiums are payable by the Secretary of Defense from appropriations for pay and allowances of servicemen. A premium rate reduction for this fund is not recommended for two reasons. The first is the reserve position of the fund and its near-term prospects which should show a worsening reserve position-a situation not uncommon for comparatively young funds. The second is contributory to the same prospect, namely, the liberalization of the financing terms for this program. Terms of financing prescribed by the statute have always been more liberal than that prescribed under the mutual mortgage insurance fund. With every statutory liberalization under that fund, there was a liberalization under the servicemen's mortgage insurance fund since the statute provides that the more liberal of two loanvalue ratios, one under section 203 and the other under section 222, should be available to the serviceman. 6. Insurance premium: Section 220 and section 221 housing insurance funds (a) Analysis.—The section 220 housing insurance fund and the section 221 housing insurance fund are discussed in the same section because of the companion features of their programs and history. Both were established by the amendment of August 2, 1954, the former to provide for the fiscal administration of redevelopment housing and the latter to provide for the fiscal administration of relocation housing. Insurance is authorized for mortgages on sales housing as well as rental housing under both programs. As tables 21 and 23 show, the funds have only recently begun to acquire significant amounts of insurance in force. Consequently, their comparative reserve positions can be expected to reflect reserve deficiencies for some time to come. TABLE 21.-Outstanding balance of insurance in force, insurance reserves, and estimated reserve requirements in the sec. 220 housing insurance fund 1 For mortgage insurance contracts in force. Adjusted for estimated unearned premiums to be retained after refunds of unearned premiums upon prepayment. TABLE 22.-Sec. 220 housing insurance fund, statement of income and expense and changes in insurance reserves 1. Income: 2. Expense: Salaries and expenses. 3. Net income before adjustment of valuation allowances. 4. Increase or decrease in valuation allowances: Allowance for estimated future losses on acquired properties and notes. 5. Net income as a percent of total income. 6. Analysis of insurance reserve: |