STATE OF BUSINESS: Putting On the Brakes

The U.S. Government and private bankers last week gently stepped on the credit brakes to keep 1955's economy from growing too big, too fast. In Washington, the Federal Housing Administration reduced the maximum FHA loan period from 30 to 25 years, also boosted the minimum down payment by 2% to a total 7% on the first $9,000 of value. Though most of its loans were solidly secured (see below), the Veterans Administration also tightened up on the building boom by requiring at least a 2% down payment on previous no-down-payment loans. In Manhattan, major banks also cut down...

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