Dublin Core
Title
Box 5, Folder 10, Document 15
Text Item Type Metadata
Text
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MENT o,
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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FEDERAL HOUSING ADMINISTRATION
WASHINGTON, D.C. 20411
ASSISTANT SECRETARY-COMMISSIONER
August 2, 1968
68-8
TO: ALL APPROVED MORTGAGEES
SUBJECT: RELAXATION OF MORTGAGE INSURANCE REQUIREMENTS
We have just notified our insuring offices that FHA, with
the Housing and Urban Development Act of 1968, now has a
congressional mandate to allow every valuator in the agency
to perform his function in determining value in many areas
without the administrative limitations of “economic soundness"
and "economic life." The new act eliminates any limitation
upon FHA participation in inner city areas on account of
neighborhood blight or the age of the properties.
FHA insurance programs are to be used everywhere, provided
only that the individual property meets eligibility require-
ments which have been sufficiently broadened by the new act
to limit rejection only to those instances where a property
has so deteriorated or is subject to such hazards, noxious
odors, grossly offensive sights or excessive noises that the
physical improvements are endangered or the livability of
the property or the health or safety of its occupants are
seriously affected. A property will be deemed to be an
acceptable risk when a market exists and the property is
free of the above cited dangers.
FHA's mission is clear. It is to meet the housing needs
of all people. We ask for the cooperation of all FHA
approved mortgagees in the fulfillment of this mission.
FHA mortgage insurance will adequately protect the mort-
gagee's investment, and the careful professional work
of our valuators will further protect the mortgagee's
and the Secretary's interests. With your help, we will ’
effectively broaden the housing choices available to all
of the public and lessen the blight upon certain properties
and areas that the denial of financing benefits can impose.
Sincerely yours,
Philip N. Brownstein
Assistant Secretary-Commissioner
229632-P HUD-Wash., D. C.
one
MENT o,
in
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
a fi
“lll,
FEDERAL HOUSING ADMINISTRATION
WASHINGTON, D.C. 20411
ASSISTANT SECRETARY-COMMISSIONER
August 2, 1968
68-8
TO: ALL APPROVED MORTGAGEES
SUBJECT: RELAXATION OF MORTGAGE INSURANCE REQUIREMENTS
We have just notified our insuring offices that FHA, with
the Housing and Urban Development Act of 1968, now has a
congressional mandate to allow every valuator in the agency
to perform his function in determining value in many areas
without the administrative limitations of “economic soundness"
and "economic life." The new act eliminates any limitation
upon FHA participation in inner city areas on account of
neighborhood blight or the age of the properties.
FHA insurance programs are to be used everywhere, provided
only that the individual property meets eligibility require-
ments which have been sufficiently broadened by the new act
to limit rejection only to those instances where a property
has so deteriorated or is subject to such hazards, noxious
odors, grossly offensive sights or excessive noises that the
physical improvements are endangered or the livability of
the property or the health or safety of its occupants are
seriously affected. A property will be deemed to be an
acceptable risk when a market exists and the property is
free of the above cited dangers.
FHA's mission is clear. It is to meet the housing needs
of all people. We ask for the cooperation of all FHA
approved mortgagees in the fulfillment of this mission.
FHA mortgage insurance will adequately protect the mort-
gagee's investment, and the careful professional work
of our valuators will further protect the mortgagee's
and the Secretary's interests. With your help, we will ’
effectively broaden the housing choices available to all
of the public and lessen the blight upon certain properties
and areas that the denial of financing benefits can impose.
Sincerely yours,
Philip N. Brownstein
Assistant Secretary-Commissioner
229632-P HUD-Wash., D. C.
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