Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-20
MORTGAGE INQUIRY
BY BLAINE GROUP
APPEARS LIKELY
Washington Realtors Oppose
Foreclosure Bill Pending
in Senate.
BANKERS CLAIM NEED
FOR LAW IS NOT SHOWN
Increased Building Costs, Decreased
Loans and Lessened Leniency
Held Drawbacks.

VI Vi 4OICC4OSulS IIlOEGSdScS III WdSIl~
1ngton by the Blaine subcommittee of
the Senate District committee appeared
likely yesterday afternoon after the
Washington Real Estate Board urged
the subcommittee not to approve the
pending foreclosure bill unless and until
the need for such law is shown to
exist.
Earlier in the day the subcommittee
had before 1t separate bill to eStab-
1ish commission to license and regu-
late the real estate business, which
proposal was Endorsed by the real estate
board through its executive secretary,
John Petty.
Since there was no opposition to the
real estate licensing measure, Senator
Blaine indicated he would take steps
this week to have the subcommittee re-
port it to the District committee AS
explained by Oscar H. Brinkman, adj
visor to the subcommittee, the bill
would create regulatory commission
OF three members, consisting of the
District assessor. one real estate man
and third member appointed by the
Commissioners.
After Petty and F. g. Addison, IT.,
OF the District Bankers Association had
testified at length as to the reasons
why they do not believe the new fore
closure law is justified by local crndi-
ions, Petty suggested to Senator Blaine
that the proposed real estate license
law be enacted first and given a fair
trial before going ahead with the fore
closure bill
Petty said this opinion was shared BY
the Bankers Association, the orpaniza-
ton Of local building and loan associa-
tions, the operative builders organiza-
ton, representative title companies
and reputable auctioneers.
Offers Complaint Investigation.
Petty suggested that the real estate
board would appoint a special commit
Tee TO investigate any complaints that
may have led to the drafting of this
legislation, or would investigate in con-
junction with committee of bankers.
lawyers and civic leaders. If thest
suggestions were not acceptable. he re-
quested that the Department of Justice
be asked to make an investigation TO
see there Is justification for such
Jaw as the one proposed.
He said that during the past 10 |
years the board has received thousands
OF inquiries for advice on almost every
phase OF real estate practice, but in all |
tnat time he could recall only two in
stances where home owners sought adj
vice In connection with foreclosure.
AT this point Senator Blaine inter-
rupted and declared that he saw Moth
ing 70 De gained by going ahead with
the hearing on the bill and Thought
the only thing to do is for the Senate
committee to proceed with an investi-
cation under the resolution adopted
last year. The Senator said he knew
there were many complaints relating to
foreclosures.
Senator Blaine expressed the belief
that an investigation by the subcom-
mlttee would develop situation that
would be astonishing
Cites Three Objections.
Petty declared the proposed FORE
closure bill would work to the disad-
vantage Of thousands of home owners
and suggested three definite hardships
tnat probably would result, namely, in
creased costs, a decrease in the amount
OF loan that could be obtained in pro-
portion to the value of a house, and
q decided lessening of leniency.
Iaking an opposite view, Brinkman |
declared that the present procedure In |
washington with regard to foreclosures |
Is more severe on the borrower than
anywhere else. He gave the details of |
one complaint he has investigated, |
which, he said, indicated the need for !
regulation Of fees charged as well as the |
regulation Of the method of foreclosure.
Senator Blaine added that hardly a |
week goes by without complaint COM
ing to his Office regarding what he
called the "harshness of foreclosure" In
the District.
Addison declared the pending bill
contains a great many antiquities and
inconsistent provisions. Senator Blaine
said his suggestions would be studied
before action Is taken. Senator Blaine
asked Petty If his organization would be
opposed to remedial legislation If it can
De shown that injustices or expressions
occur under the present foreclosure
method. Mr.. Petty replied his board
that event, but would help the COM
mittee.
q. s. Marshal Protests.
United States Marshal Edgar C.
Snyder, who would have to conduct
foreclosure sales under the Blaine bill,
protested in a statement filed at the
hearing that the measure would make
him an auctioneer. He said it would
impose on him duties and obligations
not placed on any other United States
marshal, and probably would involve
him in endless litigation. He said the
SIS fee would fall short of the addi-
tional expense to the Government.
The bill as introduced by Senator
Blaine would require publication OF
notice of a foreclosure sale .25 days
prior to date of sale, and would pro-
vide 15-day period OF redemption
after the sale. This 40-day period of
time was one of the features Of the
bill that drew opposition at the
hearing.
Petty said it is a simple matter at
present to forestall a foreclosure by
going into court and applying for a
temporary injunction upon the slightest
showing and the holders of the debt
must answer, giving the aggrieved party
he COURTS review nf ALLEGED
abridgement of rights.
One of Sen: tor Blaine's contentious
was that mo one has day in court"
under the present system. The Senator
argued that the court could not inter-
fere If the trustee was carrying out the
terms Of deed.
Petty declared that the bill would
have the effect not only Of withdraw
ing money from the field of local real
estate loans, but of increasing the cost
of such money that remains available.