A bill to establish the Federal Housing Administration as an independent Federal agency and to provide a statutory basis for the administration by such agency of standard risk programs under the National Housing Act.

Establishes an independent agency in the executive branch of the Federal Government to be known as the Federal Housing Administration to carry on and continue the functions, powers and duties of the Department of Housing and Urban Development under the National Housing Act.

Grants succession to the FHA until dissolved by Act of Congress.

Vests management in a Board of Directors and a Commissioner who shall be a member of the Board. Declares that the composition of the Board shall be 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.

Vests responsibility in the Board to make decisions of broad and general supervisory, advisory, or policy nature, and vests the Commissioner with all administrative powers.

Transfers all functions, powers and duties under specified sections of the National Housing Act to the FHA. Transfers personnel, assets, liabilities, contracts, property, records, and funds held under such Act to the FHA.

Authorizes the FHA to borrow from the Treasury such sums as are necessary for insurance purposes.

Requires the financial transactions of the FHA to be audited by the General Accounting Office. Requires that a report of the audit for each fiscal year be made by the Comptroller General to the Congress.