Rains Says FH A Raised Interest Rate
A House Democratic housing expert charged yesterday that the Administration-*^hasj raised^ FHA interest rates by subterfuge although' Ûª ÛÏlacking the courageÛ to do it directly.</br></br>The accusation* was made by Rep.'. Albert Rains' (D-Ala.), chairman of .a Banking Sul>J committee oA Housing. He hinted that his subcommittee will investigate the alleged cost-boosting action. *</br></br>Rains, in a statement, said the Federal Housing Administration without " public announcement recently amended its regulattions .to let .lenders discount loans to some-home-buyers by as much as 6 per cent.</br></br>He said the effect of this.,is to increase the allowable FH(A interest rate,Û÷/including an insurance premium /of one-half of 1 per cent, from 5 to almost 6 per cent*.</br></br>He accused the EHA of a ^callous disregardÛ for the interests of^ the home-buyer in this and other actions.