COMPANY

Why Nor Indeed!

"Why not tlvo-year subscriptions for $5.00 as before? I read the magazine all the time and don't r.l'ant Writer's Cran.rps from making out checks."

-Hugh E. Dismukes Beaver Lumber & Supply Co. Yucaipa, California permissible interest rate on FHA-insured home mortgage loans io 5t/+ percent; and a nelv schedule of prices at which Ff,IA and VA mortgages will be purchased by the Federal National Mortgage Association in its secondary market operations.

(Editor's Note: SAME AS BEFORE, friend! The t$'o-years for $5 rate still applies on all new and renenal CALIFORNIA LUMBER MERCHANT subscriptions.)

The Veterans Administration is simultaneously announcing a schedule of maximum allowable discounts on VA-guaranteed home mortgage loans.

These steps represent a coordinated effort on the part of the Federal housing agencies to carry out the stated dir'ectives of the Congress regarding discount controls in a manner that will be least disruptive to the normal functioning of the home building and home financing markets, and at the same time to assist families in the lower- and middle-income groups to purchase homes. It is expected that the latter purpose will be accomplished by attracting a larger proportion of the funds available for investment in home mortgages into the financing of lower-priced homes. The actions are also expected to facilitate the purchase of homes by veterans of World War II, whose entitlement to a home loan guaranty expires in July 1958.

The aim of the housing agencies in promulgating these new regulations is to channel a larger share of available mortgage investment funds into the financing of lower-priced homes without increasing inflationary pressures in our economy.

FNMA Announces New Purchase Prices For FHA and VA Mortgages

The Federal National Mortgage Association on August 5 announced new purchase prices for mortgages bearing the new FHA 5'/4% interest rate and revised purchase prices for FHA and VA mortgages bearing the 5/o and 4l% rate under its Secondary Market Operations program. According to FNMA President J. Stanley Baughman, the new prices range from par to 98 for S'/a/o mortgages from 98 to 96 for 5/o mortgages, and94 to 92 for 4l/o mortgages and, in accordance with usual mortgage practices, vary by areas and by the amount of the mortgagor's equity, on or after August 6, 1957.

All mortgages purchased over-the-counter are subject to a purchasing and marketing fee of. I/o for readily marketable