The Federal Home Loan Bank Board had changed its regulations, in accordance with the recently signed Housing and Community Development Act of 1977, to permit federal savings and loan institutions to make higher conventional loans for both single and multi-family homes.
Permit federal S&Ls to make loans up to $60,000 for single-family houses without those loans being charged against percentage of assets limitations. The ceiling formerly was $55,000. Only the amount over $60,000 will be subject to general percentage of assets limitations, which restrict the amount of money that the S&Ls can put into large mortgages for houses.
Eliminate a requirement that loans for multi-family dwellings must be included in a special percentage of assets category when dollar limitations set by the Department of Housing and Urban Development for rental family housing insurance are met.
Increase the ceiling on home improvement, repair and equipping loans to $15,000 from $10,000.
Bank board chairman Robert H. McKinney said the change in multi-family dwelling loans should result in increased investments in urban areas where most apartment buildings are located.
"The movement back to the cities makes sense and federal savings and loan associations now have the tools to embark uponthe challenges and opportunities the cities present to grow and expand," he said.