Arizona sun., 1961-11-02
Commission Seeks Non
Discrimination By Builders.

Discrimination By
Commission on Civil Rights called
| for the issuance of an executive
order, to insure for all Americans
equal, access to the benefits OF
Federal housing programs and
equal treatment from Federally
supervised mortgage lending in
stitutions. ;,jHli
This recommendation is contain
ed in Report on equal opportunity
in housing, the third of the Com.
missions five-volume 1861 Report
to the President and Congress. Pri-
or volumes dealt with Voting ano
Education. The Commission will
shortly issue the remainder of its
Report, covering Employment, and
the Administration of Justice.
To effectuate the proposal for
an executive order, the Commission
also recommended:
That the President direct that
the Federal Housing Administra-
ton, Veterans Administration anc
Federal National Mortgage Asso.
citation take steps to assure non
discrimination by builders banks
and brokers who participate IN
Government programs, and that he
designate open occupancy housing
for FNMA special assistance (Rec
~.
That the President or Congress
take steps to require nondiscrim
iination by all financial institutions
engaged in the mortgage loan busi'
ness that are supervised by a Fed
eral agency (Federal Home Loar
Bank Board, Comptroller of the
Currency, Federal Deposit Insur-
ance Corporation, Board of Gov
|ernors of the Federal Reserve Sys.
tenn (Rec. 81.
The three recommendations ado
up to a sweeping proposal to hall
discrimination in most "cOnven
Itionally financed housing as well
as public housing, urban renewal
housing for the elderly and homes
built with the aid of FILA mort
gage insurance, VA loan guaran-
tees, and FNNlA secondary market
purchases and sales.
In submitting the report, DR.
John A. Hannah, Chairman of the
Commission, and a former Chair
of the Board of Directors of the
Federal Reserve Bank of Chicago
Detroit Branch, stated:
81 think it particularly import
ant that mortgage lending institu
tions recognize and assume their
responsibility for assuring equal
housing opportunity. If bankers
with the cooperation and direction
of the Federal Government, will
exert the same leadership here
that they have exercised in other
fields, the goal of equal housing
opportunity will become practical
and attainable.
Recommendation was predict.
ed upon a new and detailed study
of the relationship and policy oi
the Federal Government to the
mortgage lending community. The
\ Commission found that Federally
regulated lending firms, which
hold more than 60 percent OF the
Nations non-farm home mortgage
debt" are major factor in the
denial of equal opportunity" A.
part from a resolution opposing
discrimination adopted by FHLBB
in June 1861, the Commission in
quiry revealed no Federal regula-
tory agency which has a policy
with respect to discrimination by
banks it superviseS.
Recommendation 8 brought a
sharp dissent from Vice Chairman
Robert G.. Storey, who said, re
Communications, such as this, for
increasing Federal control assume
a totally powerful National Gov
ernment with unending authority
to intervene in private affairs a.
mong men, and to control and
adjust property relationships in
accordance with the judgment Of
Government personnel" Commits
sioner Robert S. Rankin also dis
sented in part from the proposal,
indicating that he would limit new
regulation to savings and loan as
sociatiOnS which are members OF
the Federal Home Loan Bank Sys'
tenn.
The Commission found wide
spread denials of equal opportunity
in housing on racial grounds. No
ting that the housing and home