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48 Ind. L.J. 1 (1972-1973)
Home Financing at the Crossroads--A Study of the Federal Home Loan Mortgage Corporation

handle is hein.journals/indana48 and id is 7 raw text is: INDIANA LAW JOURNAL
Volume 48                          FALL 1972                           Number I
HOME FINANCING AT THE CROSSROADS-A STUDY
OF THE FEDERAL HOME LOAN MORTGAGE CORPORATION*
RICHARD W. BARTKE
The increased activity of the federal government in the field of home
financing is well known and has been repeatedly discussed.' Congressional
legislation has, over the years, provided a large number of governmental
and quasi-governmental bodies directly or indirectly active in the field.
The importance attached to the problem by Congress is attested to, inter
alia, by the fact that home financing has attained cabinet status.2 These
various agencies, although their tasks are frequently overlapping, per-
form several distinct functions. Some of them are regulatory agencies
which supervise certain segments of the financial community.3 Others
are designed primarily to insure or guarantee certain kinds of mortgage
loans to make them more acceptable to private lenders,4 and thus these
* This article is based on a study prepared by me for the Federal Home Loan
Mortgage Corporation. The consent of the Federal Home Loan Mortgage Corpora-
tion and the Federal Home Loan Bank Board to use the study as a basis for this
article is gratefully acknowledged. The views expressed herein are my own and do
not necessarily represent the views of the Federal Home Loan Mortgage Corporation
or the Federal Home Loan Bank Board.
The final revision of the manuscript was made in early July, 1972. Any develop-
ments after July 1, 1972, are not reflected.
' Professor of Law, Wayne State University; on       leave 1972-73 Fulbright-
Hays Visiting Professor of Law, University of Tehran.
1. See Colean, A Review of Federl Mortgage Lending and Insured Practices,
8 J. Fix. 249 (1953); THE PRESIDENT'S COMMITTEE ON URBAN HOUSING, A DEcENT
HOmE 54-100 (1968) [hereinafter cited as DECENT HOME]; NATIONAL COMIiiSSION ON
URBAN PROBLEmS, BUILDING THE AmERICAN CITY 94-180 (1969) [hereinafter cited as
AMERICAN CITY].
2. The Department of Housing and Urban Development (HUD) was created
by the Department of Housing and Urban Development Act, Pub. L. No. 89-174, 79
Stat. 667 (1965) (codified in scattered sections of 3, 5, 12, 42 U.S.C.). However,
all housing functions of the federal government are not handled by HUD, a fact
recently complained of by Secretary Romney. See Hearings on HR. 13694, H.R.
14639, H.R. 154o2 & H.R. xx Before the House Comm. on Banking and Currency,
91st Cong., 1st Sess. 539 (1970) [hereinafter cited as 197o House Hearings].
3. E.g., The Federal Home Loan Bank Board (FHLBB) and the Federal Home
Loan Bank System, created by the Federal Home Loan Bank Act of July 22, 1932,
ch. 522, 47 Stat. 725, as amended 12 U.S.C. § 1421 et seq. (1970).
4. E.g., The Federal Housing Administration, created by the National Hous-
ing Act of 1934, ch. 847, 48 Stat. 1246, as amended 12 U.S.C. § 1701 et seq.

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