Letter to Albert M. Cole, Administrator of Housing and Home Finance Agency, Authorizing Mortgage Purchases Under Special Housing Program for the Elderly.

Dear Mr. Cole:

Pursuant to the authority vested in me by Section 305 of the Federal National Mortgage Association Charter Act, after taking into account (1) the conditions in the building industry and the national economy, and (2) conditions affecting home mortgages insured by the Federal Housing Commissioner, and after determining that such action is in the public interest, I hereby authorize the Federal National Mortgage Association to exercise its powers to make commitments to purchase and to purchase mortgages, and to enter into commitments to purchase immediate participations (of 20% undivided interests in mortgages) and to make related deferred participation agreements, covering properties qualified under the programs or conditions listed below in the amounts indicated.

Residential properties covered by mortgages insured by the Federal Housing Commissioner pursuant to section 203 and section 207 of the National Housing Act, as amended, which mortgages shall be subject to the Housing for the Elderly amendments set forth in the Housing Act of 1956; provided that the aggregate amount of such purchases and commitments pursuant to this authorization, computed by including the full unpaid principal amounts of the mortgages affected thereby shall not exceed $20,000,000.

This authorization is in addition to those granted in my letters of January 26 and July 1, 1955.

In order to make funds available for special assistance under the programs or conditions listed above, I hereby increase the funds released in my earlier letters from $160,000,000 to $180,000,000 for purchase and commitments of 100 percent interests in such mortgages.

In exercising its powers as authorized herein, the Federal National Mortgage Association shall minimize its expenditures through the use of commitments to purchase immediate participations in mortgages whenever practicable rather than through purchases of 100 percent interests.

Sincerely,

DWIGHT D. EISENHOWER