Dear Senator Jordan:
Many Members of Congress have requested
information on government actions to relieve
the hard-pressed housing industry.
Believing that you may also find a background
paper on Administration initiatives
of value in answering constituent mail, I am
enclosing a fact sheet which may be helpful
in communications with home builders, mortgage
bankers, etc.
With cordial regard,
Sincerely,
Will~!~..
Honorable Len B. Jordan
United States Senate
Washington, D.C.
Enclosure
Timmons
Reproduced from the Len B. Jordan collection at Boise State University Library
MSS 006 Box 177 Folder 37.
Notice: this material may be protected by copyright law (Title 17 U.S. Code).
-. -·
'he Administration's 1970 housing program seeks
to turn the housing and mortgage market situation arou11d
as quickly as possible and to reacl1 a voluJnc of 1.4 million
housing starts tl1is calendar year; and
to streJ1gtl1en basic features of tl1e mortgage 1narket and HUD
subsi<lized housing programs so as to lllakc more feasible a
sustained rise in housing activity.
!stimatcs suggest a need for $20 J/2 billion of net new residential
turtgago lcndiilg this year to finance the 1.4 million l1ousing starts
:argot. The program to secure these funds is sulilmarized below. '
,_end ~22_,!LT ns t i tuti on
)<lVings & Loan
\.ssociations
:ommcrcial banks, life
lnsunmce companies, private
Jension funds, and state
Jnd loa11 government
:e ti rc'mcnt funds
'NMA-GNMA
·lutual savings bc-tnk.s
)ther lenders
Total
Net New Residential
-~~ort3q-_~_ge lending
Actual 01Jjcctive
TbTfi1 onso:f-ciOn a r-ST
$9.0 $8-9
4.0 6-7
/
4.4 4
1.8 2
.6
$19.8 $ 20+
--more-
' ·:. ~
PTO gr ~!Ill _ __.... ____ ..
$250 million subsidy
to support Home Lo<m
Bank advances.
VoluntaTy ProgTam to
shift funds to
moTtgages.
Continued active
support.
Continued active
support.
Sallie as last year
Reproduced from the Len B. Jordan collection at Boise State University Library
MSS 006 Box 177 Folder 37.
Notice: this material may be protected by copyright law (Title 17 U.S. Code).
--
Actions to ~teet Immediate Needs
1. Legislation requested authorizing $250 mill ion subsiclz (or the
Home Loan Bank Szs tem. (l.imergency--no·J,\c-"l-1 n-,-,rlct-Itg--1\c-t- oC-:C9"f0- passed
:;,=,n-afc T/T6T/or.-------- · · · ·
;L The subsidy will be used to undenHite advances to member
savings and loan associations at a lower interest rate th;cm
1'/ould othenli.se be possible.
b. Without this subsidy, associations arc likely to pay back
outstanding adva11Ces and place 011ly $4c5 billion of funds in
mortgages this year. The subsidy should promote the $8-9
billion of mortgage loans neeclecl from this industry.
2. Treasury seeking vol_ll_Jlt_a_ry _;;LJ_j)J1(.ll'I:_JoE_th? __ Ill01:_t_g_G_gc __ 1~lil:t_:kg_t_ this year
from commercial banks, life insur;n1ce C0111Jlilllics, private ~1sion
-(tmds I amC}ijj~l:_?- -~~-:cr=~o_c-ai:~];-6'0"::!-11r~Ci~--r?-:t l r_c_Tn_c:.I!_!:___f~t_JBJT--- --
a. Tl1e pledges made to date total over $2 billion dollars. This
acldltional housing creclit for 1970 resiclential mortgages will
significantly enl1ance the nation's ability to meet critical
housing needs.
3. Trc~sury, !IUD and rcc\cral agencies developing m<J_£_t_?,_<_'l_l_;_e_=.1JiLc}<_ed _____ b_Cl_!~d-~
_p,_lt_<l_r_,:.'_t_~ce~-~I'l.?:_IA, to help attrnct investment in the mortgage market.
4. FNii!A's borrowing authoTity and capital position increased to permit
continuation of heavy diTect support of the FilA-Vi\ sectoT of
the mortg<Ige market.
5. Legislation requested converting $1.5 bil1ion of CNHA Special
Assistance funds into more flcxibic-·a\i-tEoi;-1Ty.-'f11-c-fCiil-ds--cc)\ild
't-heil-hc ___ tisecl· as ·needed to buttress l!UD' s "Tandem Plan" Operations,
1·rhich assist in fi.nanci.ng constntction of subsidized housing units
on ter1ns free of excessive discounts.
6. Supplernental appropriation requests subrnitted to increase contract
atttl1ority under tl1e SectiOJlS 235 and 236 subsic\izecl l1ousing programs
by $ZS million each. .
a. Virtually all existing authority l1as bac11 reserved, and there is
a large bGc:dog of requests which cannot 1101-1 be met.
b. The 1971 Budget requests Gn additio11al $140 and $145 million for
these p1·ograms.
··T!101'C•
Reproduced from the Len B. Jordan collection at Boise State University Library
MSS 006 Box 177 Folder 37.
Notice: this material may be protected by copyright law (Title 17 U.S. Code).
1.
-3 ..
Le zi. s 1 at ion to ere ate a
1
s_9_cy_J_1
1
0c:_ry__
1
mG r
1
kc t _ _io_I'_C_9~1_':'.e!l_tJ:o_r:~_ll_!l~or_~ g_~c s
in FNM.i\ and the federal lome ,oan >an <S, along l1nes oi t 1e
market that r:N~lA noh' provides for Fll.i\ o.nd VA mortgages.
2. Legislation to strengthen FHA-VA mortgage market by authorizing
experimentation h'ith a cluGl market system partly free of mort:~age
~~~~-6· ~ ~a~:1~ ~ ; ]~ ~ t ~ x -l:~R{};-~~lc::s};IC:E Ill ()~":~·.2:I:z~_:;_ Ti· ~.0·-, ~~~_r-y~::T r1ii~I:~:~ t-r~:n·s··- ·
3. Legislation to consol iclate, streamline and strengthen the multitude
of IIUD I s subs .i. d1 z-ccf·h-ous·i·Il.gpc:·oiii:-il·Ii\s-!lOi:fcci!1fiiTil-6cC-i n-Iiia11yr.iriir~ow--m1Cr
·s-c p81:a te .. .CcgTsTaTive· ·au-fl1.6r rtfcs-.
4. Appointment of a SJ.lccial Presidential commission to study the basic
stn1cture of the 1Jii"C1.ncT~-a--systciii-··a-n(l-ft_s.1i1-slltutions.
/
/
Reproduced from the Len B. Jordan collection at Boise State University Library
MSS 006 Box 177 Folder 37.
Notice: this material may be protected by copyright law (Title 17 U.S. Code).
