Federal Housing Act

Federal Housing Act - Declares the finding of the Congress that the general welfare of the American people requires, as a matter of national purpose, the sound development of housing, together with adequate financing thereof.

Creates, under the provision of the National Housing Act, a body corporate in the executive branch of the Government to be known as the Federal Housing Administration which shall carry on and continue the functions, powers, and duties of the Department of Housing and Urban Development under this Act. Provides that nothing contained herein shall be deemed to prohibit the FHA from servicing other housing programs under this Act, provided such servicing is based on sound credit and actuarial standards.

Provides that the FHA shall have succession until dissolved by Act of Congress. Provides that all of the FHA's powers under this Act, including the authority to insure mortgages, and fix maximum amounts, interest rates, and loan-to-value ratios for such mortgages, shall continue in full force and effect and may continue to be exercised until the FHA is dissolved by Act of Congress. Provides that FHA shall maintain its principal office in the District of Columbia, and shall be deemed, for purposes of venue in civil actions, to be a resident thereof. Authorizes agencies or offices to be established by the FHA in such other place or places as it may deem necessary or appropriate in the conduct of its business.

Provides that the management of the FHA shall be vested in a Board of Directors (hereinafter referred to as the 'Board'), and a Commissioner who shall also be a member of the Board. Provides that the Board shall consist of the Chairman of the Federal Home Loan Bank Board, the Chairman of the Federal Reserve Board, the Secretary of the Treasury, the Secretary of the Department of Housing and Urban Development, and the Comptroller of the Currency, or their delegates.

Provides that the Board of Directors shall be vested with the responsibility to exercise general direction and supervision over the performance of all functions, powers, and duties vested in the FHA when relating in the judgment of the Board to matters of a broad and general supervisory, advisory, or policy nature, including the approval of regulations promulgated by the Commissioner, the setting of maximum mortgage amounts, fees, and premimums, the setting of competitive mortgage market interest rates, and the declaration of high cost areas for increased mortgage insurance. Provides that all administrative powers, functions, and duties of the FHA shall be exercised and performed by the Commissioner.

Provides for the administration of the FHA.

Provides that the Commissioner shall, among his responsibilities, advise the Board and the President with respect to Federal programs and activities relating to matters concerning development of housing under the authority of this Act, and provide technical assistance and information, including a clearinghouse service, to States, counties, towns, villages, and other local governments, in developing housing. Provides that the Commissioner shall also be responsible for maintenance of such liaison with Congress as may be necessary for proper administration of the FHA. Requires the Commissioner, as soon as practicable after the end of each calendar year, to make a report to the President for submission to the Congress on the activities of the FHA during the preceding calendar year.

Transfers to and vests in the FHA all of the functions, powers, and duties of the Department of Housing and Urban Development under specified provisions of the National Housing Act.

Authorizes the Commissioner, upon such terms and conditions as he may prescribe, to insure banks, trust companies, personal finance companies, mortgage companies, building and loan associations, installment lending companies, and other such financial institutions, which the Commissioner finds to be qualified by experience or facilities and approves as eligible for credit insurance, against losses which they may sustain as a result of loans and advances of credit, and purchases of obligations representing loans and advances of credit, made by them on and after July 1, 1939.

Authorizes the Commissioner, directed by such regulations or procedures as he shall deem advisable, to prevent the use of any financial assistance under this Act with respect to new residential structures other than mobile homes that have not been completed and occupied for at least six months, or which would, through multiple loans, result in an outstanding aggregate loan balance with respect to the same structure exceeding the dollar amount limitation prescribed in this Act for the type of loan involved. Grants the authority whereby this subparagraph may in the discretion of the Commissioner be waived with respect to the period of occupancy or completion of any such new residential structures.

Authorizes and directs the Commissioner, with respect to mobile homes to be financed under this Act, to: (1) prescribe minimum property standards to assure the livability and durability of the mobile home and the suitability of the site on which the mobile home is to be located; and (2) obtain assurances from the borrower that the mobile home will be placed on a site which complies with the standards prescribed by the Commissioner and with local zoning.

Sets forth the limitation amounts on loans and mortgages insured by the FHA. Sets forth eligibility requirements for insurance coverage by the FHA.

Requires the financial transactions of the FHA to be audited by the General Accounting Office. Requires an annual report of such audit to the Congress.