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President Signs S. 1281, regulating interest rates, funds transfers, and home mortgages [Signing Statements and Announcements]
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7342110
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President Signs S. 1281, regulating interest rates, funds transfers, and home mortgages [Signing Statements and Announcements]
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White House Press Releases (Ford Administration)
Press Releases
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U.S. Senate. (03/04/1789 - )
Legislation
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1976-01-01
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1976
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Digitized from Box 19 of the White House Press Releases at the Gerald R. Ford Presidential Library
FOR IMMEDIATE RELEASE
JANUARY 1, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I have signed into law S. 1281.
Title I of
this bill extends until March 1, 1977, the authority of
various Federal agencies to regulate interest rates paid
on certain deposits in financial institutions. Title II
extends the authorization of the National Commission on
Electronic Fund Transfers for two years beyond the con-
firmation date of its chairperson. I support these two
measures. However, I have some reservations about Title III,
the "Home Mortgage Disclosure Act of 1975."
This Act will require financial institutions having
over $10 million in assets and operating in large urban
"standard metropolitan statistical areas" to comply with
a new program of Federal regulation. All of these
depository institutions will be required to compile,
and make available for public inspection, information
on the number and total dollar amount of mortgage and home
improvement loans, broken down by census tract or zip
code. This Federal law will be enforced by several
Federal regulatory agencies (the Federal Reserve Board,
Federal Home Loan Bank Board and others) and will super-
sede any inconsistent provisions of State laws. The
Federal Reserve Board will have authority to exempt
State chartered institutions which are subject to similar
State disclosure and enforcement requirements.
In essence, this third Title attempts to highlight
the problem of mortgage and home improvement loan fund
shortages in some parts of large urban areas -- often
lower income, older neighborhoods -- where credit dis-
crimination based upon geographic factors is alleged to
occur.
I firmly believe, as do most people, that discrimination
on racial or ethnic grounds is a practice which is abhorrent
to our American way of life. Our Constitution grants
equal liberties to all citizens. Federal, State and
local laws expressly prohibit discriminatory practices.
Our courts have continued to uphold the principle that
a strong and free Nation is one which can, and must,
protect any individual's rights, regardless of race or
religion. This bill attempts to expose any such dis-
crimination by financial institutions providing housing
credit. I strongly support this objective.
While I note that the Congress claims that this
legislation is not intended to encourage unsound lending
practices or the allocation of credit, I am concerned that
this Mortgage Disclosure Act may impose a burdensome and
costly requirement for additional recordkeeping and paper-
work. Unless this new disclosure program is very carefully
administered, the Federal Government will be placing yet
more
2
another requirement on the private sector -- a requirement
which will impose substantial costs but will do very little
to increase the total availability of mortgage funds in our
housing markets.
I trust that the agencies administering Title III of
this bill will assess carefully the costs and benefits to
both the lenders and borrowers. As presently enacted, this
legislation will have a four-year life. If, within that
period, undue burdens result from the implementation of
this program, I shall not hesitate to recommend amending
legislation.
I also trust that the Congress will join with my
Administration in working to solve the capital shortage
problem which our country faces. Over the years our ex-
panding capital markets have helped keep the American
economy strong because sufficient capital -- for housing,
industry, consumer credit and other purposes -- has been
available to sustain economic growth. Rather than support
capital allocation, my Administration is committed to
improve and strengthen the free market mechanisms used for
raising and investing capital -- particularly for housing.
To this end I have urged Congress to enact the Administration's
Financial Institutions Act of 1975, (S. 1267), a bill which
will permit banks and other thrift organizations to offer
competitive yields on savings deposits and a wider range
of services to customers and homebuyers. This legislation
will offer new incentives to all mortgage lenders and
should help alleviate shortages of mortgage money in every
housing market of our Nation.
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