The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-30
YEARLY REPAYMENT
Is MORTGAGE PLAN
Lenders Propose Annual Re-
ductiOn to Protect Money
Invested.
ONE BANKER OPPOSES

That lending institutions may he pro-
tected against loss due TO depreciation
in tne value Of real estate in this city.
d new form OF mortgage is likely to be
adopted soon. This will all for repay
ments by borrowers up 20 n per cent
q year on the principal. Many Of the
local institutions. savings banks, trust
companies. life insurance companies and
title companies have been agitating mort
cages with amortization features for
some time. There was a conference OF
the heads OF practically all such institu-
Hons In the city yesterday ut the Cham
bar of Commerce. Though definite ac-
uon in the matter was put Oft until all
NJ the facts bearing on mortgage loans
could be collated. expressions of opinion
indicated thai; very soon most real estate
mortgages would be made for terms OF
mi less than ten years and that the
borrowers would be expected to repay at
l0akt one per cent. annually.
. Il has always been the practice In this
city 20 make mortgage ans for periods
Of three or five years. with no payments
required on the principal during the
life of the mortgage. During the last
few years, or since the depression In real
estaie, many lenders have been com
I<lCu W dht properties III e
which they have been able to resell only
at material losses because Of changing
land values. II is said that this condi-
ton has caused many persons who have
large sums to invest to lea We toe mort
gage market entirely.
Will Offset Depreciation.
Under the proposed amortization plan
II 10 thought tina; repayment OF ten pei
cent. on the principal OF n mortgage luz
ing the ten years OF its term will be
suf1cient to offset any depreciation IN
value and will make the mortgages more
attractive as investments.
II the plan IL adopted II will NEAR
o only that owners of big office build.
ipgs will V TO repay l per cent. q
year on the mounts of their mortgages
dut owners OF little houses will have &c
do likewise. II of the principal oil.
jections to the plan has been that Il vii
make almost impossible the PURCHASING
Of homes by persons OF mall means wht
o have about all they can do TO pay
on second mortgages.
Favorable was heard at yes
terday's conference concerning a resolu'
ton proposed recommending the adop
ton of n form of mortgage calling fol
quarterly payments of interest and semi,
annual payments on the principal o.
nne-half OF ! per cent. trough n perio,
Of not less than ten years. A. vote wa,
not taken on the resolution.
More thar $50 men well known II
financial circles attended the conference
Clarence II. Kelsey OF the Title Guar
Rntee and Trust Company. Richard NJ
Hurd Of the Lawyers Mortgage Com
pany. Louis v. Bright OF the Lawyer,
TNtle Insurance and Trust Company
Willard v. King, John ]. PuIfeyn of tn,
Emtyrant Bank. William II. Shields O,
the Mutual Life and +. !. pevlin OF tn.
New York Life spoke In favor OF III,
long term arortized mortgage and b,
many Illustrations showed that much o.
the present unrest IN real estate coui,
he traced TO a faulty mortgage condi
ton.
William Felsinger. president Of tn
New York Savings Bank, was the onl,
one OF the bankers present who took
stand In opposition to the propose,
change in form. In fact he, John y
Golding and A. W. Mclaughlin were til,
only opposers OF the plan.
No Trouble In Collecting,
Nj. Felsinger said the proposed chang,
was not necessary. lie said his bani
had never been TROUBLED unduly in co!
lecting overdue mortgages. He adde,
that he had always held to the polio,
OF helping his borrowers and that h,
had seldom found & necessary 10 pres
them for repayment.
Mr.. Golding said that lenders wer,
not dealing In these DAYS with H. b,
night builders or operators. but witt
conservative investors who are gettin,
little enough return on their investments
II aaI shAV - ,