FNMA To Resume Purchase of FHA-lnsured and VA-Guaranteed Mortgages

The Federal National Mortgage Association (FNMA) u'ill resume the purchase on September 2 of. eligible FHAinsured and VA-guaranteed mortgages on non-defense and non-disaster housing, A$ministrator Raymond M. Foley of the Housing and Home Finance Agency announced August 22. Such purchases were discontinued last April 2 except for mortgages which had been offered prior to that date.

At the time of the discontinuance FNMA explained that there were no longer funds available for the purchase of non-defense housing mortgages. Sipce then, however, the Housing Act of 1952 made available $362,000,000 previously set aside for defense, military and disaster housing mortgages. Repayments and other credits have brought the total now available for non-defense and non-disaster housing mortgages to approximately $400,000,000.

Consistent with provisions of the amendments to the Housing Act of 1952, FNMA has made several important changes and additions to the general requirements in connection with the purchase of non-defense or non-disaster mortgages. Tlrey include:

1. The mortgage, to be eligible for purchase by FNMA, must have been insured by FHA or guaranteed by VA subsequent t<., February 29, 1952.

New lJkich Sqwmill Plant Completed €rnd Running

The sawmill of the Ukiah Lumber Company, at Potter Valley, California, which was destroyed by fire more than a year ago, has been entirely replaced by a very modern mill that will cut about 24,M,0n feet of lumber a year.

Floyd Crenshaw is manager.

The sawmill equipment consists of a nine foot headrig and a six foot resaw with automatic feed. It is one of the most thoroughly modern mills in the country.

The modern planer and dry kilns were not destroyed by the fire last year, so the entire plant is now in full operation.

2. Not more than S0% of. the dollar amount of VA mortgages and qot more than 25/o of. the dollar amount of FHA mortgages originated by a seller, subsequent to February 29. t952, may be offered for purchase by FNMA. Previously there was no limit on VA mortgages and, 50/o on FHA mortgages.

3. I-inder revised fees and charges requirements, sellers will be obliged to agree to refund the builders any form of indemnity held by the seller under a so-called "repurchase" agreement.

In the preliminary consideration of the Housing Act of 1952, proposals were made before the Banking committees of both Houses for a one-for-one type of operation under u'hich an organization that purchased. mortgages from FNMA's portfolio would acquire aright, in turn, to sell mortgages to FNMA in the future. While no specific legislation dealing with this proposal was enacted, Mr. Foley said the Board of Directors of FNMA is now considering whether a similar type of operation may be developed within the- authority of existing law and made applicable to FNMA's revolving fund purchase authorization. It would not, of course, apply to the $400,000,000 existing purchase authorization referred to above.

Long-Bell Directors Hold Session At Weed, Cclilorniq

The Board of Directors of the Long-Bell Lumber Company met recently at Weed, California, to tour the California operations of the company. Those who made the trip through the California holdings were T. E. Heppenstall, E. H. Houston, J. H. Kenneson, J. M. White, L. C. Stith, J C. Williams, J.D. Leland, C. H. Rooney, L. G. Everitt, W. M. Runyan, H. G. Reents, Julian White, John Mantle, Harvey Gilman, L. L. Gibson, R. F. Morse, S. M. Morris, Wayne Bassett, R. A. L. Ellis, D. E. Mclean, K. G. Hanson, Jesse Andrews.

They visited Weed and the Gardiner operations.