display by such individual or organization. An organization violating this subsection shall for each violation be punished by a fine of not more than $10,000. An officer or member of an organization participating or knowingly acquiescing in any violation of this subsection shall be punished by a fine of not more than $5,000 or imprisonment for not more than one year, or both. An individual violating this subsection shall for each violation be punished as set forth in the sentence next preceding this sentence. (b) The provisions of sections 220, 607, 658, 1011, and 1014 of title 18 of the United States Code are hereby extended to apply to and with respect to the Corporation, and for the purposes of said section 658 the term "any property mortgaged or pledged" as used therein shall, without limitation on its generality, include any property subject to mortgage, pledge, or lien acquired by the Corporation by assignment or otherwise. (c) The term "bank examiner or assistant examiner" as used in section 655 of said title 18 shall include any examiner or assistant examiner who is an officer or employee of the Corporation and any person who makes or participates in the making of any examination of or for the Corporation. (d) The term "bank" as used in subsection (f) of section 2113 of said title 18 shall be deemed to include the Corporation, and any building used in whole or in part by the Corporation shall be deemed to be used in whole or in part as a bank, within the meaning of said section 2113. (e) The terms "agency" and "agencies" shall be deemed to include the Corporation wherever used with reference to an agency or agencies of the United States in sections 201, 202, 216, 283, 286, 287, 371, 506, 595, 602, 641, 654, 701, 872, 1001, 1002, 1016, 1017, 1361, 1505, and 2073 of said title 18. Any officer or employee of the Corporation shall be deemed to be a person mentioned in section 602 of said title 18, within the meaning of sections 603 and 606 of said title. (f) The terms "obligation or other security" and "obligations or other securities," wherever used (with or without the words "of the United States') in sections 471 to 476, both inclusive, and section 492 of said title 18 are hereby extended to include any obligation or other security of or issued by the Corporation. Any reference in sections 474, 494, 495, and 642 of said title 18 to the United States, except in a territorial sense, or the Secretary of the Treasury is hereby extended to include the Corporation. Section 477 of said title 18 is hereby extended to apply with respect to section 476 of said title as extended by the first sentence of this subsection (f), and for this purpose the term "United States" as used in said section 476 shall include the Corporation. (g) References in this section to sections of title 18 of the United States Code shall be deemed to be references to said sections as now or hereafter in force. TERRITORIAL APPLICABILITY SEC. 11. Notwithstanding any other law, this Act shall be applicable to the several States, the District of Columbia, Puerto Rico, and the territories and possessions of the United States. CONSTRUCTION AND SEPARABILITY SEC. 12. Except as otherwise provided in this Act or as otherwise provided by the Corporation or by laws hereafter enacted by the Congress expressly in limitation of provisions of this Act, the powers and functions of the Corporation or of the board of directors shall be exercisable and the provisions of this Act shall be applicable and effective without regard to any other law. Notwithstanding any other evidences of the intention of Congress, it is hereby declared to be the controlling intent of Congress that if any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. HOUSING AND HOME FINANCE AGENCY, Hon. JOHN SPARKMAN, Chairman, Subcommittee on Housing, DEAR MR. CHAIRMAN: In accordance with your letter of April 18, 1960, and my acknowledgment of April 29, 1960, I am pleased to submit the enclosed report on recommendation No. 7 requested by your subcommittee. The problem of projecting the future supply and distribution of savings as well as the future demands for credit requires a number of assumptions, including a few key assumptions stated in the report of the Senate Subcommittee on Housing which contained recommendation No. 7. We have tried, in our study of mortgage credit requirements and the availability of funds to meet those requirements in 1961-70 to follow the wishes of your subcommittee. In order to do this we made various assumptions and on the basis of these assumptions projected a hypothetical model of credit demands and the availability of funds to meet these demands. Since this report has been developed on the basis of such assumptions, we do wish to put the subcommittee on notice that this is not a forecast of probable developments in housing or in the economy as we do not believe it is likely that the national economy will move in the straight progression pattern that had to be assumed inasmuch as we cannot foresee the future. Once again, I would like to say that it has been a great pleasure to work with you and members of your subcommittee toward improvement of the housing and environment of the American people. Sincerely yours, Enclosure. NORMAN P. MASON, Administrator. MORTGAGE CREDIT, 1961-70 INTRODUCTION This report has been prepared pursuant to recommendation No. 7 of the report of the Subcommittee on Housing to the Committee on Banking and Currency, U.S. Senate, entitled "Study of Mortgage Credit," dated April 15, 1960. The recommendation reads as follows: The subcommittee believes that the flow of mortgage credit required to produce 16 million permanent nonfarm units during the 10-year period beginning in January 1961 may not be achieved without the perfection or supplementation of existing institutions designed to provide a secondary and supplementary market for loans insured by the Federal Housing Administration or guaranteed by the Veterans' Administration. Consequently, the subcommittee recommends that the Administrator of the Housing and Home Finance Agency be requested to submit a report, not later than January 1, 1961, which report shall, among other things, include 1. An analysis of total mortgage credit requirements which may be required to support new residential construction activity of 16 million permanent nonfarm units, on a stable basis, during the 10-year period beginning on January 1, 1961. 2. The extent to which this volume of credit may be available on a stable basis, without revision of the enabling legislation or the administrative policies of the Federal National Mortgage Association or without the creation a new institution to provide an active secondary market for loans insured by the Federal Housing Administration or guaranteed by the Veterans' Administration. 3. The desirability of creating an independent board to establish interest rate policies for programs administered by the Federal Housing Administration and the Veterans' Administration, and to establish purchase and marketing policies of the Federal National Mortgage Association or any other institution created to provide a secondary market for loans insured by the Federal Housing Administration or guaranteed by the Veterans' Administration. The first and second of the enumerated parts of the recommendation, stating subject areas to be included in the report, are part of the major question that is set forth in the preamble of the recommendation. The question is whether there will be a flow of mortgage credit required to produce 16 million permanent nonfarm housing units during the 10-year period 1961-70 under existing institutions for home financing. The analysis of total mortgage credit requirements for the given volume of production is an integral part of the further question, whether the required flow of mortgage funds will be available. Therefore, the first and second enumerated parts of the recommendation are both treated in part 1 of this report under the heading "Study of Residential Mortgage Credit Requirements, 196170, and Availability of Funds To Meet Requirements." The third enumerated point of the recommendation invites an inquiry as to the desirability of a new independent board to establish FHA and VA interest rate policies and FNMA purchase and market policies. This is primarily a question of the best administrative organization to establish policies for existing governmental institutions, to help produce a stable flow of mortgage funds to meet home financing requirements. It does not deal with the question of whether the policies and authorities of the present institutions have to be modified or new institutions created in order to produce an adequate, stable flow of mortgage funds, the focus of part 1 of this report. Therefore, the third enumerated point has been dealt with separately in part 2, under the heading "Should There Be an Independent Board To Set Policies on FHA and VA Interest Rates and on FNMA Secondary Market Purchases and Sales?" Part 1 is relatively long and technical. Consequently, a summary of part 1 has been included immediately after this introduction. Part 2 is relatively short and no summary of it was prepared. PART 1. STUDY OF RESIDENTIAL MORTGAGE CREDIT REQUIREMENTS, 1961-70 AND AVAILABILITY OF FUNDS TO MEET REQUIREMENTS SUMMARY This study of mortgage credit requirements was made in accordance with assumptions and related conditions in the recommendation for the study by the Senate Subcommittee on Housing, and in the sub |