Letter Increasing Funds for the Federal Housing Administration.
I have your letter of October 15th, addressed to the Federal Loan Administrator, and note that, as of September 30, 1940, your outstanding mortgages insured, together with commitments and business in process, amounted to $2,814,000,000, and that applications for mortgage insurance currently average about $120,000,000 a month, and that the aggregate amount of principal obligations of all mortgages insured under Title II of the Act and outstanding at any one time may not exceed $3,000,000,000, "except that with the approval of the President such aggregate amount may be increased to not to exceed $4,000,000,000."
I note that you recommend the limitation be increased, and, 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 outstanding principal of mortgages which may be insured by the Federal Housing Administrator, making an aggregate of $4,000,000,000.
I want to congratulate you upon the remarkable record you have made as Federal Housing Administrator. You have demonstrated that comfortable homes for people of moderate means can be provided at low cost and without loss to the Government, whether the homes are owned by the occupants or rented by them.
Honorable Stewart McDonald,
Federal Housing Administrator,
Washington, D. C.
Franklin D. Roosevelt, Letter Increasing Funds for the Federal Housing Administration. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/209349