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still outstanding insurance liability of $242,864,969. At December 31, 1942, insurance in force and commitments to insure mortgages under this title totaled approximately $707,000,000 leaving about $93,000,000 of the total authorization of $800,000,000 available for commitments.

During the fiscal year 1942 we processed 128,224 applications for insurance amounting to $508,649,371. During the first 5 months of the fiscal year 1943 under sections 603 and 608 of title VI we processee 63,349 applications amounting to $321,444,465 and we feel that during the entire fiscal year 1943 we will process applications on 180,000 units amounting to $792,000,000. While title VI of the National Housing Act expires on July 1, 1943, in view of the national emergency we have estimated that during the fiscal year 1944 we will process applications on 90,000 units for $396,000,000 under this title of the act. Since this housing is necessitated by the war, it is assumed that if title VI is not extended these applications will have to be processed under title II.

ASSISTANCE TO PRIVATE CAPITAL TO SUPPLY WAR HOUSING

The contribution of the Federal Housing Administration in assisting private capital in its endeavor to supply war housing has not been limited to our operations under title VI, although the major portion of new home insuring activities for the past year have been under this title. During the 1942 calendar year, construction was started on just under 160,000 new dwelling units under F. H. A. inspection. Almost all of these were in the critical war housing areas. Of the 160,000, 112,000 were started under title VI insurance, with the remainder under title II and class 3 of title I. Since September 1942, 95 percent of our insurance of new homes has been under title VI, sections 603 and 608. Up to November 30, 1942, no properties insured under title VI had been conveyed to us after foreclosure and no loss on properties had been suffered in this fund for that reason. We are requesting $4,703,968 for administrative expenses to be paid out of this fund during the fiscal year 1944. I might say that the premium charge for this insurance is the same as that charged under title II. I have already covered the question of personnel.

WORK DONE FOR WAR PRODUCTION BOARD

The only remaining statement that I would like to make is that we are doing a very substantial amount of work for the War Production Board. They have, in order to utilize the hundred offices that we have over the country and to utilize our experienced personnel, engaged us to process priorities for them. All priorities for the building of residences, shee the priority system was inaugurated, have been processed by our offices. And from the beginning to December 1942 we had received 663,856 applications for priorities. We have found 517,403 of those applications eligible and the War Production Board has approved for priorities, 392,388 of them.

Mr. FitzPATRICK. Are these permanent buildings now under construction?

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Mr. FERGUso N. We are trying not to insure any loans on houses that are not considered permanent. Some loans have been insured under title II, but only in areas where they are reasonably considered to be permanent. Mr. FitzPATRICK. When does title II expire? Mr. FERGUso N. Title II does not expire at all, except for the insurance of loans on existing properties. That provision of the law expires July 1, 1944. Mr. FITzPATRICK. Where applications have been made to start the construction of private homes will you insure these loans if you have applications on file and the building is under way? Mr. FERGUsoN. Oh, yes; we give the commitment before the man ever starts to build. So there is not any question of title II being affected by that, because title II, as to new homes, has no expiration date. But title VI does have an expiration date. - Mr. FITZPATRICK. And you say that where you insure you will see they have priorities in getting the materials? Mr. FERGUsoN. No; the builders must get the priorities. Mr. FITZPATRICK. They must get priorities first? Mr. FERGUSON." Yes. Mr. FitzPATRICK. They are furnished the material? Mr. FERGUson. That is right; we will not consider an application for insuring a loan until after the builder has gotten a priority. Mr. FITZPATRICK. You are doing a fine job, and thousands and thousands of citizens throughout the country have purchased their homes by means of loans of this kind, and they are paying 20 to 25 percent less a month than if they were paying rent for the same house. At the end of 20 years they own their home, whereas if they were paying rent they would have nothing to show for their money at the end of 20 years. Mr. STARNEs. I agree with what Mr. Fitzpatrick has said. I think it is the solution to a certain extent of the private housing problem. Mr. FERGUSON. Thank you. Mr. STARNEs. I am of the opinion that is is worth more than all of the other housing projects combined. Mr. FERGUsoN. When we came to you in 1941 and first suggested this war housing under title VI we told you then that we did not consider it the same as the title II operation; that it was an entirely different set-up and we should have a separate fund that would not affect the mutual mortgage insurance fund under title 2; that it is not as sound a loan and we did not want to affect the solvency of the mutual fund.

PERCENTAGE OF WALUE INSURABLE UNDER TITLE WI

Mr. FITZPATRICK. How much are you authorized to insure under title VI? What percentage do you insure under that title?

Mr. FERGUson. Ninety percent.

Mr. FitzPATRICK. Ninety percent?

Mr. FERGUsoN. Yes; it is 90 percent, however, of the replacement value rather than 90 percent of the appraisal value in cases where it is located in the higher-priced zones.

work of THE FEDERAL Housing ADMINISTRATION UNDER EACH of - THE TITLES

Mr. WIGGLEsworth. What portion of your work, Mr. Ferguson, for the curernt year was done under title I? Mr. FERGUson. Well, I would say $10,000,000 a month; about $120,000,000 a year. The work under title I has fallen off very much because of the Federal Reserve Board restrictions and also because it is hard to get the priorities to do the work. - r. WIGGLEsworth. $120,000,000 under title I. Title II would be how much for the past fiscal year? Mr. FERGUson. For the past fiscal year, 1942, you mean? Mr. WIGGLEsworth. Yes. - Mr. FERGUson. Under title II, section 203, the small home mort... gages, during the fiscal year 1942, we processed 207,262 applications - for $978,816,261. Mr. WIGGLEsworth. $978,000,000 plus? Mr. FERGUSON. Yes. Mr. WIGGLEsworth. On 207,262 applications? Mr. FERGUson. Yes. Mr. WIGGLEsworth. Now, under 207? Mr. FERGUsoN. Under 207 we processed applications for 32 projects for $16,315,800. Mr. WIGGLEsworth. That has been practically thrown out? Mr. FERGUsoN. It has been practically suspended for the period of the war. - Mr. WIGGLEsworth. Under title VI. When did title VI come into operation? s Mr. FERGUson. Title VI went into effect in March 1941. Mr. WIGGLEsworth. How much was done under 603? - Mr. FERGUsoN. Under 603; 128,224 units, for $508,649,371. * Mr. WIGGLEsworth. And under 608? Mr. FERGUson. That includes 608. Mr. WIGGLEsworth. That is for both of them? Mr. FERGUson. Yes. I can give you, Mr. Wigglesworth, what we did under title I. Mr. WIGGLEsworth. I though you gave that as $120,000,000. Mr. FERGUson. That was the estimate for this year. Mr. WIGGLEsworth. What was it for 1942? Mr. FERGUson. For 1942 it was $244,671,463. Of course, title I expires as of the 1st of next July. Mr. WIGGLEsworth. Both title VI and title I, unless renewed, will run out with this fiscal year? Mr. FERGUson. Yes; that is right. Mr. WIGGLEsworth. In your 1944 estimates for the appropriation, which is before us now the amount is based solely on the estimates for the work under title II; is that right? Mr. FERGUsoN. Estimates based on work to be done under title II and title VI. As I have said before, if title VI is not extended then the application under title VI will have to be processed under title II. Mr. WIGGLEsworth. And roughly speaking that is about half, or a ratio of 10 to 7 rather?

Mr. FERGU so N. Yes. Mr. W1GGLEsworth. Ten-seventeenths of the total. Now you have given us your anticipated work, I think in your statement already, in terms of cases to be processed. Mr. FERGU so N. Yes. Mr. W1GGLEsworth. To December 1, 1944. Mr. FERGUso N. Of course, we cannot say that title VI is going out of the window, because of the houses that are insured, but insurance under title I and title VI will expire unless extended. Mr. WIGGLEsworth. That would go to section 207? Mr. FERGUSON. And 203. Mr. WIGGLEsworth. Two hundred and three and two hundred and seven? Mr. FERGUsoN. That is right. Mr. WIGGLEsworth. Are all of these funds self-supporting, except for the title I in respect to the period before you collected premiums? Mr. FERGUsoN. That is right. As to title I, I should say this, it is my judgment that title I is substantially self-supporting for loans as of the date we were permitted to collect premiums; it will be a little short, but not substantially.

BREAK-DOWN OF RATIO OF LOAN TO VALUE ON MORTGA GES UNDER TITLE VI

Mr. WIGGLEsworth. Could you give us a table that would show the break-down of mortgages you are authorized to insure at 90 percent under title VI? Mr. FERGUSON. Yes. Mr. W1GGLEsworth. And those at 80 percent under title II? Mr. FERGUson. Well, we have a 90-percent provision under title II but the houses have to be for owner occupancy. Mr. WIGGLEsworth. Well, would you give us a table that would show a break-down of the mortgages by percentages that are insured at 90 percent, at 80 percent, and so on so we can have a picture of it before us? Mr. FERGUSON. That is under title II? Mr. WIGGLEsworth. Covering all your work. Mr. FERGUSON. We can do that. (The statement requested follows:)

Ratio of loan to value—new and existing 1- to 4-family home mortgages accepted for insurance by Federal Housing Administration, calendar gears 1935–41

Percentage distribution
Loan as a percent of value 1 New homes Sec. Existing homes
603,
1935 | 1936 1937 1938 1939 1940 | 1941 | * | 1935 | 1936 1937 1938 1939 1940 | 1941

(3) (3) (3) 13.7 13.7 13.2 10.8 8, 6 (3) (4) (3) (3) (3) (3) (3)
51.6 59.7 67. 4 24.6 16. 1 11, 8 9.4 2.4 40. 3 45. 0 54.9 55.7 58.4 63. 3 70. 0
18, 7 16.9 15. 6 6, 1 4.7 3. 6 2, 6 .7 16.9 16, 5 17. 9 17. 4 16.8 16.2 14.3
12.5 10. 1 8. 1 3.4 3. 6 2. 7 2. () ... 5 12.8 13.0 11, 2 11, 1 10. 7 8.6 7.0
7. 1 5. 5 4. 0 1. 3 1. 1 ... 8 ... 6 ... 1 9.3 7.8 5.9 6.3 5. 5 4.7 3.7
4.7 3.9 2.4 1.0 ... 6 ... 5 4 (4) 7, 1 6. 5 4. 3 4.3 3.9 3.2 2, 3
2.2 1.7 1. 1 .4 ... 2 ... 2 2 (4) 4. 4 3.7 2. 1 2.0 2.0 1.7 1.2
3.2 2, 2 1.4 ... 5 .4 ... 4 3 (4) 9, 2 7, 5 3.7 3.2 2.7 2. 3 1.5
Total--------------------------------------- 100. () 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100. () 100.0 100.0 100. () 100.0
Average loan as a percent of average value--------- 73. 0 73. 9 75.3 82.4 83.7 84, 7 85.5 88, 5 69.0 70.4 73.7 73.9 74. 4 75.1 76.2
Median percent----------------------------------- 76. 1 76. 6 77.0 85. 6 86. 6 87. 0 88.9 89.3 73.1 74. 5 76.4 76, 4 76. 6 76.8 79.5

(3) (3) (3) 49.0 59.6 | 66.8 | 73.7 87.7 | (3) (3) (3) (3) (3) (3) (3)

1 Includes valuation of house, all other physical improvements, and land.
* Computations based on insured mortgages.
* Homes ineligible for mortgages of more than 80 perrcent of property valuation.
* Less than 0.05 percent.

Source of data:
1941: 5941–VI–C–4 and II–C–4; 5941–036b.
1940: 5940–C–6–B.
1939: 5939–C–6–A and C.
1938: 5%)6–C–7—i.
1937: 3322—M-8–c.
1936: Incoming Reports—Title II (January through June 1936 only).
1935: Charts, tables, and maps * * * 1935 Annual eport (title II, 6).

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