SAU OF U.S. CONGRESS DeNate. Committee on 51 Reorganization Plan No. 22 (Transferring the Federal National Bur Govt Gift 1246-50 Message from the President of the United States, transmitting Reorganiza- Cain, Hon. Harry P., a United States Senator from the State of Crawford, Arthur W., research consultant, citizens committee for the Dougherty, James L., general counsel, Reconstruction Finance Cor- Foley, Raymond M., Housing and Home Finance Administrator__ Goldberger, Marvin L., national legislative director, AMVETS King, Joseph T., counsel, National Retail Lumber Dealers Associa- McCormick, Robert L. L., research director, Citizen's Committee for Snyder, Calvin K., secretary, Realtors' Washington Committee of the National Association of Real Estate Boards-- Sparkman, Hon. John J., a United States Senator from the State of Walker, Oliver, president, Washington Real Estate Board Williamson, John C., assistant legislative representative, Veterans of Letters, statements, memorandums, etc., submitted for the record by- Authorizations, maximum, Federal National Mortgage Association__ Autonomy of Home Loan Bank Board, memorandum. Federal Government secondary market operations in home mortgage loans, history of authorizations and types of mortgages purchased Financial Aspects, document submitted by Reconstruction Finance Goldberger, Marvin L., national legislative director, AMVETS, state- Gray, Richard J., president, building and construction trades depart- ment, A. F. of L., letter, June 30, 1950, to Hon. John L. McClellan Johnson, Lee F., executive vice president, National Housing Con- ference, Inc., letter, June 22, 1950, to Hon. John L. McClellan- King, Joseph T., submitted testimony, relative to Reorganization McClellan, John L., report on Federal business enterprises__. McCormick, Robert L. L., research director, Citizens Committee for Schumacher, E. D., member, United Service and Research, Inc., letter, June 15, 1950, to Hon. John L. McClellan_. Secondary Market Problem, document by Robert M. Morlan, research director, Department of California Housing Committee, Veterans of Foreign Wars of the United States.. Snyder, Calvin K., statement on behalf of the National Association Stauffacher, Charles B. executive assistant director of the Bureau of Sullivan, Francis M., national legislative director, Disabled American Veterans, letter, June 30, 1950 to Hon. John L. McClellan _ _ Unit d States Savings and Loan League, statement re S. Res. 299, to III REORGANIZATION PLAN NO. 22 OF 1950 WEDNESDAY, JUNE 28, 1950 UNITED STATES SENATE, COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS, Washington, D. C. The committee met, pursuant to notice, at 10 a. m., in room 357, Senate Office Building, Senator John L. McClellan (chairman) presiding. Present: Senators McClellan, Hoey, Benton, Mundt, Mrs. Smith of Maine, and Schoeppel. The CHAIRMAN. The committee will come to order. We begin scheduled hearings this morning on Senate Resolution 299, introduced by Senators George and Cain, for the disapproval of Reorganization Plan No. 22. At this point in the record we shall insert the President's message of transmittal, Reorganization Plan No. 22, and a copy of the resolution, which the committee will now consider and hear testimony upon. (The documents above referred to are as follows:) [H. Doc. No. 587, 81st Cong., 2d sess.] MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, TRANSMITTING REORGANIZATION PLAN No. 22 OF 1950 To the Congress of the United States: I transmit herewith Reorganization Plan No. 22 of 1950, prepared in accordance with the provisions of the Reorganization Act of 1949. The plan improves the grouping of Government programs according to their major purposes by transferring the Federal National Mortgage Association from the Reconstruction Finance Corporation to the Housing and Home Finance Agency. This reorganization carries out the specific recommendation of the Commission on Organization of the Executive Branch of the Government that "The Federal National Mortgage Association be placed under the Administrator of the Housing and Home Finance Agency." At present, the Federal National Mortgage Association, a wholly owned Government corporation, is a subsidiary of the Reconstruction Finance Corporation. Its purpose is to provide a secondary market for home mortgages insured or guaranteed by other Government agencies through the purchase, service, and sale of such mortgages. In addition, it is authorized to make direct loans for housing in Alaska. As of the end of March 1950 its total holdings were approximately a billion dollars and its outstanding commitments to purchase were more than $1,400,000,000 in addition. Such a volume of activity has an obvious impact on the Government's entire housing program. The Congress has long recognized that the function of such a secondary mortgage market is closely related to the entire housing program. The Federal National Mortgage Association originally was chartered by the head of the Federal Housing Administration as authorized by title III of the National Housing Act. In rechartering the Federal National Mortgage Association 2 years ago the Congress recognized the relationship between it and the operations of the Housing 1 |