1st Session

STUDY OF MORTGAGE CREDIT

DOES THE DECADE 1961-70 POSE PROBLEMS
IN PRIVATE HOUSING AND MORTGAGE
WHICH REQUIRE FEDERAL

MARKETS

LEGISLATION?

RECOMMENDATIONS OF FEDERAL AGENCIES

COMMITTEE ON BANKING AND CURRENCY SUBCOMMITTEE ON HOUSING

UNITED STATES SENATE

66225

MARCH 28, 1961.

Printed for the use of the Committee on Banking and Currency

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1961

CONTENTS

Letter of Senator Sparkman to chairman_

Report of Federal Reserve Board on Recommendation No. 5.

Letter of transmittal___

Residential construction activity in 1946-59-

Page

1

3

The early postwar period.

The boom of 1949-50-

The boom of 1954-55

9

13

The 1956-57 period.

The boom of 1958-59-

Developments in population and the housing supply

Factors contributing to instability.

Comparison of postwar cycles_

15

15

a

17

22

23

Report of the Federal Home Loan Bank Board on Recommendation No. 6__

Letter of transmittal and comments.

Analysis of draft bill to create a Federal Mortgage Marketing Cor-

poration and bill..

31

33

36

Report of Housing and Home Finance Agency on Recommendation No. 7.-

Letter of transmittal__

Part 1. Study of residential mortgage credit requirements, 1961-70,

and availability of funds to meet requirements..

Summary.

I. Derivation of projected mortgage credit requirements_

II. Projected nonhousing credit requirements

III. Projections of disposable income, net cash savings, and net

flows of other loanable funds_

IV. Availability of funds for different types of investments_

V. Adequacy of mortgage funds and the question of institutional

changes

Part 2. Should there be an independent board to set policies on FHA

and VA interest rates and on FNMA secondary market purchases

and sales.

I. FHA and VA interest rates..

II. FNMA secondary market purchase and marketing policies_-

48

48

57

75

94

103

118

Appendix.

Appendix tables I-A to I-M.

Appendix tables II-A to II-I_

Appendix tables III-A to III-K.

Appendix tables IV-A to IV-I

Appendix table V-A_

125

125

129

137

137

146

152

160

168