New FHA Actions Designed to Add lmpetus To Increose in Home-Building Activity

Washington,D.C.-FHACommissionerNormanP. Mason announced two steps January 9 that will be good news to home buyers. He also said ihat in view of thi increasing. availability of funds for home purchasers, no change is contemp,lated in the maximum rate of interest that may be charged on FHA-insured loans. The two steps were taken at this time to give added impetus to the increase in home building actfuity that has been evident in recent months, said the National Retail Lumber Dealers Association.

FFIA home. buyers will no longer be required to pay closing costs in cash-_T_he cash pa-yment requirement was instituted in. April .1955 as an anti-inflationary measure. Removal of the requirement will reduce the cashinvestrnent that must be made by home buyers at the time of purchase.

Commissioner Mason explained that under the riew resulatio-n the closing costs may be included in the amount-of the_ loan, if the value of the property is high enough, or builders and sellers can arrang-e to parl the cl5sins coit.

The Commissioner also announied adjustmenis in per- mitted discounts on FHA-insured mortgjges. New ,eella- tions will allow some increase in discorint"s in areas *i"." mortgage money continues to be scarce, and reductions in areas,where mortgag-e funds have become more readily avallable.

The Commissioner.explained that these changes in per- mitted discounts are based on reports from FH"A field of_ fices throughout the country. They were decided upon in order to make mortgage money eqirallv available to American families regardless of their geosrlphic location.

The National Housing Act of 1957 required the FHA to set feasonable discount rates throughouf the country. The

FHA'S Mason Optimistic

Holqsing is ewerybody's busineis, according to Federal Housing Commissioner Norman p. Maion, who eSlrggse.d optimism about the future at a meeting of the National Retail Lumber Dealers Association' in Philadelphia. "There is no question about there being a market for houses today. Never was there a tim"e when more. people had incomes that make home ownership possible," Commissioner Mason said in evaluati"g_!.hg tremendous and informed interest in housing.

With more and more families wanting to buy their own homes the industry is faced with-the chillenge of.providing a.large voiu-m9 of good housing that"is prrced wrthrn the range of the average American fam- ily's income and finance{t, with long--range safety features, according to Mr. Mason.

In Commissloner Mason's opinion, there are four factors to consider in evaluating future activitv in housing construction. First is the*availability of mortgage financing; second, the use of second'mortgage h.na111gg; third, the demand for housing, and folrih, the FHA terms for an increasing numblr of families to become home owners.

following adjustments are being made in accordance with this requirement in view of FHA insuring office exp,erience:

(1) Increase from 2 to 3 points in thelermitted'discount in the states of California, Oregon and Washington :

(2) Increase from Zft to 3 points in Arizona, Colo-rado, _I_d_aho, . Montana, Nevada, New Mexico,' Utah and Wyoming.