Letter on the Federal Housing Administration

My dear Mr. McDonald:

I have your letter of December 6, 1938, in which you state that the unobligated balance of the present limitation of $2,000,000,000 on the aggregate amount of principal obligations of all mortgages insured and outstanding at any one time was $415,000,000 on December 1, 1938, and in which you recommend that the present limitation be increased to $3,000,000,000.

It is obvious from the statements in your letter that the present limitation will soon be reached and, if you are to continue insuring all eligible applications presented to you for the remainder of this fiscal year and for the fiscal year 1940, it will be necessary for you to have an increase in the present authorization.

Therefore, in accordance with the authority contained in Section 203 (a) of the National Housing Act, as amended, I hereby approve an increase of $1,000,000,000 in the amount of outstanding principal of mortgages which may be insured by the Federal Housing Administration, making an aggregate of $3,000,000,000.

Sincerely yours,

Honorable Stewart McDonald,

Administrator, Federal Housing Administration,

Washington, D.C.