The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-05
TO STUDY MORTGAGE
AMORTIZATION PLAN
Financial and Real Estate
Men to Outline Plan for
Repayment Loans.

Further steps toward a system Of
amortizing loans in this city were taken
last week when W. committees were
appointed by Cyrus C. Miller. chairman
OF the conference OF real estate men, and
representatives OF leading institutions
which several weeks ago decided to look
into the matter. The first committee
will investigate the entire mortgage sit
uation, ascertain the facts and gather
data upon the amortization policies In
foreign countries and in the United
States and determine as to whether
such a form Of mortgage would be feasi-
bic In New York city. This committee
will also prepare a tentative mortgage
form providing for instruments OF prin-
cipal yearly. the duration OF the mort
rase -as we'll as the rate OF amortization
to be left undetermined
Upon the ground that these two rae
tors must he determined upon TINS com-
mittee has been formed. and II VII! cor.
sist OF John ]. Pulleyn. comptroler OF
the Emigrant Industrial savings bank'
Walter Stabler. comptroller OF the Net
ropolitan Life Insurance Company; VIII
lam e. Knox, comptroller OF the Bowery
Savings, Bank Clarence II. Kelsey.
president OF the Title Guarantee ano
Trust Company +. j. Parsons, wee
president OF the United states Mortsase
and Trust Company Adoiph b'och vi
the United Real Estate owners Assoc,s-
lion. and Samuel +. Goldman OF tne
Real Estate Board. This IL
TO meet regularly to consider the various
objections to the plan n also give
hes rir ~ to any persons VINO may iaNor
or on,.ose this amortization policy.
II is especially desired by the advisory
! council, that whoever may be aHecteu
by this policy or he interested IN any
way should communicate with the OH
| mittee formed so that an opportunity
may he afforded to II to thorouenls r"n-
slider every aspect OF the question. TINS
nolIcv II not beneficial to the borrowers
naturally would not be a wise one 10
adopt. T., 20
soc,,ra so,,,,der real estate and mortgage
conditions IN New York. There are many
| aspects of the question to De cohsiaereu
=, besides that OF amortization. All vi
which must he brought Forward py oo."
lenders and borrowers AZ 70 VIA Az
rate Of amortization may ne mus, ue-
/ nend upon the circumstances In each IN
div,dual case. In act II might not De
! advisable in a number OF instances 10
.mp,oy the principles ~ amorNzation
n,r,icula rly in cases where 80 per cent
or less OF the property IL mortgaseo. o,
where the increase in land Sbiues WI"
more than Offset depreciauon III us
building. Their are mortgages wnich
To-day are being amortized at a higher
rate than . per cent. annually. but. on
the other hand, a l per cent. rate may
prove confscatory with small owners
II has been suggested that instead OF
recurring an amount TO be paid annually
or ~semi-annually upon principal his
amount could be divided into a payment
on principal and a payment on Interest.
This recommendation was made In or
der to not place the greatest burden at
the beginning Of the mortgage period.
with consequent small burden AZ the
end owing to the fact that each year
the interest charges become less.
Some misunderstanding has arisen as
to the application OF these principles
uron the ground that the movement has
been supported entirely by financial in
stltutions. The advisory council first
considered the subject at the request OF
small owners who found themselves dur
ing the financial stringency OF 1914 in a
rrecarious condition. due to impaired
equities. They then realized that II dur
ing better conditions they had employed
amortization a larger per cent. OF their
mortgage would have been satisfied and
the lenders would not be required 10 call
in the mortgage TO protect the people
they represented.
The other committee was selected TO
communicate with the various assocla-
tons represented by the committee Ger
aid X. Brown. for the Association of Life
Insurance Presidents George +. Ed
wards. for the state Savings Banks AS
ISOLATION Stewart Browne. for the
United Real Estate Owners Association
Franklin Petit, for the Real Estate
Board Benjamin \. Morton. for tn
Trust Companies Association. Richard
VI. Hurd. for the Mortgage Companies {:
Samuel :. Conoyer. for the state Bank
ers Association.