HOUSING: $100 Million Windfall Profits

In its first roundup report on the housing scandals, the Administration estimated last week that windfall profits were well over $100 million in the 1,547 projects investigated. The report was prepared by William F. McKenna, a Los Angeles lawyer appointed by the Administration five months ago to check up on the Government-sponsored projects.

In 90% of the projects,* said he, there were windfall profits as a result of watered-up mortgage loans, insured by the Federal Housing Administration under the Housing Act's Section 608. McKenna put the blame for the skulduggery directly on ex-FHA Assistant Commissioner Clyde L. Powell, whose gaudy...

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