TABLE VIII.-Relative use of FNMA by States relation FNMA holdings to United

TABLE IX.-Relative use of FHA by States 1952 FHA insurance per $10,000 in

Charts on the following pages show the transition of the secondary mortgage market portion of FNMA from a Government-operated, Government-financed organization to a Government-operated organization using private funds. The figures used in the charts are based on the following assumptions:

(1) That the Federal Treasury will furnish the original capital in the sum of $70 million;

(2) That users of the facility will buy certificates in the amount of 2 percent

of mortgages sold. Certificates to be exchanged for stock when total certificates equal $70 million Treasury stock.

(3) That FNMA will pay 22 percent to the Treasury in annual dividends on original capital and 22 percent on all paid-in certificates;

(4) Projected purchases, sales, average portfolio are listed by years on following page:

7. Private capital replaces government capital

2. Adequate, progressive secondary market established

3 Channels home financing into the areas where needed
at the right time in the right amounts, in the
public interest, thus broadening the market for low-
income and minority loans

4 Doesn't cost the taxpayer a dime

5. Taxpayer receives a profit

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