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CIONAL Y Mr. DIRKSEN. How is that done?

Mr. Ferguson. We have a magazine we put out which goes to on a lending institutions, with a circulation of about 8,000, which was be biz published for a time every month. We cut it down now to once a stred-quarter

. That goes out to lending institutions, supplying them with for the information about our regulations, our policies, about building ma.terials, etc. It explains what we consider sound lending practices.

The type of houses on which we will insure the mortgage loans they Lise Demake. In other words, we make the information available to those

who are interested, especially the lending institutions.

Mr. DIRKSEN. Does that take all of this fund?

. Mr. FERGUSON. No; we get out a weekly release; we publish what w we call a clip sheet which goes out to the newspapers all over the

country, giving them information about housing and home financing b of interest to the buying public. The clip sheet is distributed to the i newspapers on their written request and they publish a good deal of is that material. About 3,000 newspapers have requested this monthly

service.

Mr. DIRKSEN. I wonder if you will give us a break-down for the record showing how this will be expended. Mr. FERGUSON. Yes.

Mr. WIGGLESWORTH. Will you also show what you have done during the last fiscal year as you have for other years?

Mr. Ferguson. You mean covering our activities? Mr. WIGGLESWORTH. Yes in detail what was actually done; Mr. Ferguson. The weekly release that comes out is one of the things. We will be glad to give you a statement for the record.

(The statement requested follows:)

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Division of Education-Number of personnel and annual salaries compared to the

same period a year ago

Personnel

Salaries

Nov. 30, 1941.
Nov. 30, 1942

23
9

$68, 900 26,780

Radio broadcasts.-Between June 30, 1941, and July 1, 1942, two 15-minute network broadcasts were presented over the facilities of the National Broadcasting Co.

Over independent radio stations during the same period approximately 25,500 broadcasts were presented representing a total of 790 hours.

The estimated value of these broadcasts, presented without expense to the Federal Government, is approximately $190,137 at the commercial rate.

During the same period the Federal Housing Administration has furnished upon request script and transcription service to 609 radio stations.

Motion pictures.-One 10-minute technicolor short-We Americans-produced at no cost to the Federal Government and released June 26, 1941, was run gratis in leading commercial theaters throughout the Nation. At the request of the Department of State, this and other films for theatrical distribution have been made available for showing in South America, Canada, New Zealand, Australia, Switzerland, and Sweden.

Films for commercial theater distribution during the year ending June 30, 1942 We Americans (technicolor short): Showings

17, 670 Attendance.

5, 147, 616 Films for nontheatrical distribution during the year ending June 30, 1942 Today We Build: Showings

26 Attendance.

9, 225 Design and Construction of Three Small Homes: Showings..

965 Attendance.

110, 975 Our Home: Showings

920 Attendance

80, 402

Exhibits and window displays for the period of June 30, 1941, to June 30, 1942 Home shows..

38 Fairs (State and county)

18 Special events.-

12 Exhibits displayed in financial institutions..

11 Window, displays: No. 6.

10, 000 Special poster

5, 000

15, 000

Distribution upon written request of material by the Public Relations Division

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1 Figures represent print order per issue. Five week-end releases, including year round-up story, were issued during December.

2 Insure Mortgage Portfolio is published on a quarterly basis. This figure is for the fourth quarter issue, published Dec. 15.

Mr. WIGGLESWORTH. Do I understand that this transfer to Mr. Blandford's agency is provided for and that the item can be taken out entirely from your appropriation?

Mr. MOORE. The decision to consolidate the service was reached only a week or 10 days ago and it would be necessary for some funds to be transferred to the Administrator's office to support the consolidated functions. It is necessary to provide such funds in its budgets of each of the three constituent units.

Mr. WIGGLESWORTH. They will be in the appropriation item for the Administrator's office, if I understand it correctly.

Mr. MOORE. That is correct.
Mr. WIGGLESWORTH. The F. H. A.

Mr. MOORE. They are not in the Administrator's office budget. It would be necessary, once the consolidation is made, to transfer funds from the constituent agencies to the administrative office from funds made available to those agencies.

SAVINGS EFFECTED BY CONSOLIDATION OF INFORMATION SERVICES

Mr. WOODRUM. Could you not put a statement in the record showing how you want to take care of the constituent agencies for 1944 and the language you suggest for the Administrator's office for 1944?

Mr. Moore. Yes; we can do that.
(The statement requested follows:)

SAVINGS TO BE MADE BY CONSOLIDATION OF INFORMATION SERVICE

The total savings from the proposal to consolidate, in the office of the Administrator, the information services of the National Housing Agency will be $71,930 of which $61,780 will be in the authorization before this committee and $10,150 in other war housing funds previously made available by Congress. In order to provide for this consolidation of services and the resultant saving these steps would be taken: The authorization of the office of the Administrator would be increased by..

$110,000 The authorization for Federal Housing Administration and F Home Loan Bank Administration may be decreased by -

171, 780 Resulting in saving of...

61, 780 But the authorizations for Federal Housing Administration and Federal

Home Loan Bank Administration must contain part of the increased
$110,000 for the office of the Administrator amounting to..

60, 500 Resulting in a net decrease in these authorizations of..

111, 280 In addition there will be a further economy in the use of war housing funds of..-

10, 150 Total saving ($61,780 plus $10,150).

71, 930 If the committee agrees that this consolidation is desirable, the following changes would be made in the amounts contained in the authorizations before the committee:

Total Proposed amount in amount on requested au- basis of con. thorization

solidation

Office of the Administrator..
Federal Home Loan Bank Administration.
Federal Housing Administration..

$420,000 1 12, 173, 750 10, 285, 560

$530,000 12, 148, 200 10. 199, 830

1 This figure takes into account $148,500 of duplication referred to earlier by Mr. Fahey. This amount has been deducted from the original request of $12,322,250.

1

Mr. WIGGLESWORTH. How about the Personnel Division? Can that not be cut down from $123,455?

Mr. Ferguson. We have the priorities work, Mr. Wigglesworth, covered in that small amount.

Mr. WIGGLESWORTH. How many people does the total represent? Mr. FERGUSON. Sixty-one; and of course, there is a very fast turn-over among employees now.

COMPARATIVE COST OF INSURING NEW CONSTRUCTION

Mr. DIRKSEN. I wanted to ask about the figure on page 98 of the justification, which shows that it costs twice as much to insure new construction as old. Your estimate on new construction is 63,000 units at $48 per unit.

Mr. Ferguson. Oh, it costs a lot more because, you see, we have to make three inspections.

Mr. DIRKSEN. Well, it costs twice as much. You show you are insuring for $24 per unit existing structures, and you are insuring at $48 per unit on new construction.

Mr. FERGUSON. Oh, no; that is $24 estimated for commitments on cases that are carried over from one fiscal year to another. You see a commitment may be issued this fiscal year and half of the work performed, the balance of the work being done in the next fiscal year.

Mr. DIRKSEN. Oh, it is the amount of commitment?
Mr. FERGUSON. Yes.

Mr. DIRKSEN. In paragraph 3, however, you say 80 percent, or 42,000, are estimated to be insured in 1944 fiscal year at $48 per unit20 percent, or 10,500 units, are estimated to be committed at June 30, 1944, at $24 per unit.

Mr. FERGUSON. That is right. The rest of the work would have to be done in the fiscal year 1945.

Mr. DIRKSEN. That is depending upon what is left over?

Mr. FERGUSON. Depending upon what is left over. Our experience is that just about half of the work is done before the commitment is issued, and half afterward.

Mr. DIRKSEN. I did not know that was the breaking point.

COST OF FORECLOSURES

Now, what about the foreclosure cost, $520 per property?
Mr. FERGUSON. That is the actual average cost.
Mr. DIRKSEN. That is the actual average cost?
Mr. FERGUSON. Yes.

Mr. DIRKSEN. In what States is the foreclosure cost highest, and in what States is it lowest?

Mr. FERGUSON. In the first place, in New York it costs about $400 to foreclose a mortgage. Then there always are overdue taxes, overdue interest, selling expense, brokers' commission

Mr. DIRKSEN. Has no uniformity in the foreclosure cost been adopted, to the extent that you operate a Federal agency?

Mr. FERGUSON. No. I have spent months and months of my time going all over this country, going to meetings or conferences on uniform laws, and finally got a uniform mortgage law adopted in Philadelphia several years ago when the conference was held there and the American Bar Association approved it.

Mr. DIRKSEN. Won't your work load reduce very materially as a result of uniform foreclosure laws?

Mr. FERGUSON. Oh, yes; and that is reflected in bere.

Mr. DIRKSEN. Has it been reflected to the extent you are free from that excuse?

Mr. FERGUSON. As a matter of fact, the only expense we have in here for title I after July 1 is audit of claims, maintenance, and collection expenses.

Mr. DIRKSEN. Now, looking at page 93 of the justifications, at the top, I note the language there in the last sentence of the first paragraph:

Recently the National Housing Agency and the War Production Board agreed that all private construction in the future would be reserved for inmigrant war workers and that it would all be rental property unless after 4 months of occupancy the war worker chose to purchase.

Do I understand from that they are going to develop some kind of vacancy control; in other words, who is going to occupy the house?

Mr. FERGUSON. 'Oh, no, I do not understand that. Before a man can get a priority to build a house, he has to agree that he will not sell that house except that after the tenant has lived in it for 4 months, he can buy it. That is exactly what this means.

Mr. Dirksen. Has vacancy control been discussed in your Agency at any time?

Mr. FERGUSON. We have nothing to do with that. The War Production Board would have the only control of that. But you understand this is not vacancy control in here. This is to keep these houses primarily for the use of immigrant war workers who, at the time they move into them, are not in a position to buy. In other words, the worker does not know how permanent his job is going to be, or one thing about it; but, after having been in the house for 4 months, if he wants to buy, he can do it.

NEED FOR CONTINUATION OF TITLE I DURING WAR

Mr. DIRKSEN. Do you think it right that we ought to continue title I?

Mr. FERGUSON. Yes.
Mr. DIRKSEN. Why?

Mr. FERGUSON. I think it ought to be continued because when the war is over

Mr. DIRKSEN. Wait a minute; I am not thinking of the war being over; I was just thinking of the war being on.

Mr. FERGUSON. Then, during the war, what title I has done has been a very substantial contribution. There have been loans made over the past year that have provided accommodations for 16,000 war-worker families. In other words, they borrowed the money from private lending institutions to remodel houses into apartments, or to provide additional rooms and 16,000 of those units have gone to war workers. And it takes very little critical materials to do the work.

Mr. DIRKSEN. Why does such a volume of collection work come back to you, if the banks do a reasonable job on this matter?

Mr. Ferguson. Well, the banks have done a reasonable job, but there is a terrific volume here.

Mr. DIRKSEN. I realize that.

Mr. Ferguson. The defaults have only been 2.6 percent, and we are collecting now at the rate of $2,500,000 a year.

Mr. DIRKSEN. What about those accumulated cases for collection?
Mr. FERGUSON. The old ones?
Mr. DIRKSEN. Yes.

Mr. FERGUSON. When actually we find out they are hopeless, we charge them off, as any other company would do, and send them over to the General Accounting Office and tell them they are no good. For instance, a man may go into bankruptcy, or our investigation may show he has lost his job, or that he cannot get a job, or that he is sick, or something like that, and there is not any use in fooling with him.

Mr. DIRKSEN. That is all.
Mr. FITZPATRICK. Thank you, Mr. Ferguson.

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