An Act to amend section 14(b) of the Federal Reserve Act, as amended, to extend for 2 years the authority of Federal Reserve banks to purchase U.S. obligations directly from the Treasury
PL 90-300 (H.R.15344), enacted 05/04/1968

82 STAT. ] 
PUBLIC LAW 90-301-MAY 7, 1968 
113 
Public Law 90-300 
AN ACT 
To ameiitl section 14(b) of the Federal Reserve Act, as amended, to extend for 
two years the authority of Federal Reserve ))anks to purchase United States 
obligations directly from the Treasury. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That section 14(b) 
of the Federal Keserve Act, as amended (12 II.S.C. 355), is amended by 
striking out "July 1,1968" and inserting in lieu thereof "July 1,1970" 
and by striking out "June 30, 1968" and inserting in lieu thereof 
"June 30,1970". 
Approved May 4, 1968. 
May 4, 1968 
[H. R. 15344] 
Federal Reserve 
Act, amendment. 
80 Stat. 235. 
Public Law 90-301 
AN ACT 
To amend chapter 37 of title 38 of the United States Code with respect to the 
veterans' home loan program, to amend the National Housing Act with respect 
to interest rates on insured mortgages, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) section 
1810(c) of title 38, United States Code, is amended by striking out 
"$7,500" and inserting in lieu thereof "$12,500". 
(b) Paragraph (2) of section 1811(d) of such title is amended by 
striking out "$7,500" each time it occurs and inserting in lieu thereof 
"$12,500". 
^ 
SEC. 2. (a) Section 1810(b) of title 38, United States Code, is 
amended— 
(1) by amending paragraph (5) thereof to read as follows : 
"(5) the loan to be paid by the veteran for such property or 
for the cost of construction, repairs, or alterations, does not exceed 
the reasonable value thereof as determined by the Administrator; 
and," and 
(2) by adding at the end thereof the following new sentence: 
"After the reasonable value of any property, construction, repairs, or 
alterations is determined under paragraph (5), the Administrator 
shall, as soon as possible thereafter, notify the veteran concerned of 
such determination." 
(b) Section 1822(a) of such title is amended by striking out "section 
1810, 1812, 1813, or 1818 of this title, or made under section 1811 or 
1818" and inserting in lieu thereof "section 1812 or 1813". 
SEC. 3. (a) Notwithstanding the provisions of sections 203(b)(5), 
207(c)(3), 213(d), 220(d)(4), 220(h) (2) (iii), 221(d)(5), 231(c) 
(6), 232(d) (3) (B), 234(f), and 1101(c) (4) of the National Housing 
Act regarding the maximum interest rates which the Secretary of 
Housing and Urban Development may establish for certain mortgage 
insurance programs authorized by that Act, the Secretary is author-
ized, until October 1,1969, to set the maximum interest rates for such 
programs at not to exceed such per centum per annum on the amount 
of the principal obligation outstanding at any time as he finds neces-
sary to meet the mortgage market, and during that time the interest 
rates so set shall be deemed to be for all purposes the interest rates in 
effect under the provisions of said section 203(b)(5) and the other 
sections referred to above: Provided, That in determining the rate to 
May 7, 196 8 
[H. R. 10477] 
Veterans* Ad-
ministration. 
Home loans. 
12 u s e 1709 
et seq-
114 
PUBLIC LAW 90-301-MAY 7, 1968 
[82 STAT. 
38 use 1801. 
12 u s e 1713. 
12 use 1715e. 
12 use 1715V. 
12 use 1715y. 
Mortgage credit 
interest rates. 
Study commis-
be applicable for the said section 203(b) (5) program, the Secretary 
shall consult with the Administrator of Veterans' Affairs regarding 
the rate which the Administrator considers necessary to meet the 
mortgage market for ^aranteed or insured home loans to veterans 
under chapter 37 of title 38, United States Code. 
(b) Section 207(c) (3) of the National Housing Act is amended by 
inserting before the period at the end of the first sentence of the second 
paragraph the following: ", or not to exceed such per centum per 
annum not in excess of 6 per centum as the Secretary finds necessary to 
meet the mortgage market". 
(c) Section 213(d) of such Act is amended by striking ", except 
that-• and all that follows preening the period at the end of the first 
sentence and inserting in lieu thereof "on the amount of the principal 
obligation outstanding at any time, or not to exceed such per centum 
per annum not in excess of 6 per centum as the Secretary finds necessary 
to meet the mortgage market". 
(d) Section 231(c) (6) of such Act is amended by striking "or not 
to exceed'' and all that follows preceding the semicolon and inserting 
in lieu thereof "or not to exceed such per centum per annum not in 
excess of 6 per centum as the Secretary finds necessaiy to meet the 
mortgage market". 
(e) Section 234(f) of such Act is amended by inserting before the 
period at the end of the first sentence the following: ", or not to exceed 
such per centum per annum not in excess of 6 per centum as the Secre-
tary finds necessary to meet the mortgage market''. 
SEC. 4. (a) The Congress finds that the national goal of "a decent 
home and a suitable living environment for every American family" 
cannot be reached unless there is an adequate supply of mortgage credit 
at rates of interest the American family can afford; that in recent yeai'S 
this credit has been available only at unreasonably high rates of 
interest, up as much as 50 per centum in the last three years; that for 
a moderate income family the cost of financing a home now is greater 
than the combined cost of land, labor, and construction material; that 
under existing constitutional arrangements our monetary and fiscal 
policies seem to be inadequate to cope with these high finance charges; 
that many financial institutions tend to withdraw from the mortgage 
market during tight money periods; that the purpose of Government 
ceilings seems to be thwarted by insidious discount points; that there 
exists in the public and private .sections of the economy the resources 
and capabilities necessary to eliminate the problems; and that new 
and more effective ways should be explored to exploit tlie power of 
Government and the economic resources of our Nation to resolve this 
difficult problem. 
(b) There is hereby established a commission to study mortgage 
interest rates and to make recommendations to assure the availability 
of an adequate supply of mortgage credit at a reasonable cost to the 
consumer (hereinafter referred to as the "(Commission") which shall 
be comprised of fifteen members as follows: 
(1) The chairman and ranking minority member of the Banking 
and Currency Committee of the United States Senate. 
(2) The chairman and ranking minority member of the Banking 
and Currency Committee of the House of Eepresentatives. 
(3) The chairman and the ranking minority member of the Com-
mittee on Veterans' Affairs of the House of Representatives. 
(4) Two members appointed by the President of the Senate, one 
from the majority party and one from the minority party other than 
those referred to in paragraph (1). 
82 STAT. ] 
PUBLIC LAW 90-301-MAY 7, 1968 
115 
(5) Two members appointed by the Speaker of the House of Kep-
resentatives, one from the majority party and one from the minority 
party other than those referred to in paragraphs (2) and (3). 
(6) Five members appointed by the President, at least three of 
whom will be public members representing the consumer. 
(c) A vacancy in the Commission shall not affect its powers, but 
shall be filled in the same manner as the original appointment. 
(d) The Chairman of the Commission shall be designated by the 
President. 
(e) Eight members of the Commission shall constitute a quorum, 
but a lesser number may conduct hearings. 
(f) The Commission shall undertake a comprehensive study and 
make recommendations on— 
(1) The necessity for statutory or administrative controls over 
interest rates in connection with Government-assisted mortgages; 
(2) The appropriate level for such interest rates to enable 
low- and moderate-income families to afford decent housing; 
(3) Ways to assure the availability of an adequate sujDply of 
mortgage credit to produce the volume of housing required to 
meet the goals set forth in housing and urban development laws; 
and 
(4) The institutional changes, through legislation, administra-
tion, or tax incentives, that can be made among the Nation's 
financial 
institutions to encourage them to make available a 
larger share of capital funds for home financing purj)oses. 
(g) Said report of the Commission shall be made by April 1,1969, 
.study commis-
so as to enable the President, Congress, and the Secretary of Housing ^^°" report. 
and Urban Development to take necessaiy action before October 1, 
1969, when the authorization for the increase in interest rates above 
present statutory ceilings will expire. 
(h) The Commission is authorized to secure directly from any de-
f
xartment, bureau, agency, board, commission, office, independent estab-
ishment, or instrumentality of the executive branch of the Federal 
Government information, suggestions, estimates, and statistics for the 
purposes of its work; and each department, bureau, agency, board, 
commission, office, independent establishment, or instrumentality is 
authorized to funiish such information, suggestions, estimates, and 
statistics to the extent permitted by law and within available funds. 
(i) The members of the Commission specified in paragraphs (1) 
through (4) of subsection (a) shall serve without axiditional compen- 
^°^*' ^' ^°°^' 
sation. The members of the Commission appointed under paragraph 
(5) of subsection (a) shall receive $75 j^er diem when engaged m the 
performance of the duties of the Commission. xlU members of the „Jltl^""^ ^*" 
Commission shall receive reimbursement for necessary traveling and 
subsistence expenses incurred by them in the performance of the duties 
of the Commission. 
(j) The Secre«tary of Housing and Urban Development shall desig-
nate the Executive Director of the Commission. Financial and admin- IZT °^ ''°'""''^" 
istratiye services (including those relating to budgeting, accounting, 
financial reporting, personnel, and procurement) shall be provided the 
Commission by the Department of Housing and Urban Development, 
for which payment shall be made in advance, or by reimbursement, 
from funds of the Commission in such amounts as may be agreed 
upon by the Chairman of the (Commission and said Department. 
(k) The Commission shall have power to appoint and fix the com-
pensation of such additional pei-sonnel as may be necessary to carry 
out its duties, without regard to the provisions of the civil service laws 
and the Classification Act of 1949. 
63 stat. 9S4. 
penses. 
Executive Di-
5 u s e 5101 
et seq. 
116 
PUBLIC LAW 90-301-MAY 7, 1968 
[82 STAT. 
5 use 3109. 
Appropriation. 
Commission ter-
mination. 
38 use 1801. 
Expenditures. 
(1) The Commission may also j^rocui-e, without regard to the civil 
service laws and the Classification Act of 1949, temporary and inter-
mittent services to the same extent as is authorized for the executive 
departments by section 15 of the Administrative Expenses Act of 
1946 (5 U.S.C. 55a) but at rates not to exceed $50 i^er diem for 
individuals. 
(m) To the extent of available appropriations, the Commission may 
obtain, by purchase, rental, donation, or otherwise, such additional 
property, facilities, and services as may be needed to carry out its 
duties. 
(n) There are authorized to be appropriated, out of any money in 
the Treasury not otherwise appropriated, such sums as may be neces-
sary to carry out this section. 
(o) The Commission shall cease to exist sixty days after the sub-
mission of its final report. 
SEC. 5. (a) Chapter 37 of title 38, United States Code, is amended 
by adding at the end thereof the following new section: 
"§1827. Expenditures to correct or compensate for structural 
defects in mortgaged homes 
"(a) The Administrator is authorized, with respect to any property 
improved by a one- to four-family dwelling inspected durmg con-
struction by the Veterans' Administration or the Federal Housing 
Administration which he finds to have structural defects seriously 
affecting the livability of the pi-operty, to make expenditures for (1) 
correcting such defects, (2) paying the claims of the owner of the 
property arising from such defects, or (3) acquiring title to the prop-
erty; except that such authority of the Administrator shall exist 
only (A) if the owner requests assistance under this section not later 
than four years (or such shorter time as the Administrator may pre-
scribe) after the mortgage loan was made, guaranteed, or insured, and 
(B) if the property is encumbered by a mortgage which is made, 
guaranteed, or insured under this chapter after the date of enactment 
of this section. 
"(b) The Administrator shall by regulation prescribe the terms 
and conditions under which expenditures and payments may be made 
mider the i)rovisions of this section, and his decisions regarding such 
exi>enditures or payments, and the terms and conditions under which 
the same are approved or disapproved, shall be final and conclusive, 
and sliall not be subject to judicial review. 
"(c) The Administrator is authorized to make expenditures for 
the purposes of this section from the funds established pursuant to 
sections 1823 and 1824 of this title, as applicable." 
(b) The analysis of chapter 37 of title 38, United States Code, is 
amended by adding at the end thereof the following: 
"1S27. PiXpeiulitures to correct or coiui>fiisate for structural defwts iu mort-
gaged homes." 
Approved May 7, 1968.