Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-04
LEGAL PROPOSALS
FOR D. c: STUDIED
Real Estate Board Starts
Extensive Inquiry Into
Suggested Laws.


undertaken by local bankers, the
Washington Real Estate Board has
started an extensive study Of proposed
new legislation affecting realty prac-
tice here, according to a statement
today by John A. Petty, executive sec
rotary, outlining the position of the
board on measures before the last
Congress.
Enactment Of law providing for
licensing of real estate brokers and
statesmen has been urged by the board,
he pointed out, and several amend
Ments of the District Code affecting
foreclosure procedure have been IN
formally suggested.
Need for extreme" legislation az
fecting foreclosure of mortgages, how
ever, has not been demonstrated, in
the opinion of realtors, bankers, build
ing association spokesman and others.
Mr.. Petty declared.
Oppose BIue-Sky" Type.
Legislation to correct evils in financ-
ing and in the sale of securities has
been Endorsed by the Realty Board for
q number of years, but realtors are
opposed to the "blue-sky" type OF
legislation proposed in Congress last
year. the realtor spokesman said.
Since 1924" Mr.. Petty stated, 1--WE
have requested EACH succeeding Con-
gress to enact a real estate brokers
license law confidently believing that
the enactment of such legislation would
reach most Of the wrong practices in
real estate. Our position in respect
to this and all other real estate legis-
lation has been consistent. We have
recognized the need for legislation and
have attempted to cooperate with
Congress in its preparation.
In respect to the necessity Tor ex-
IRENE legislation affecting the fore
closure of mortgages, the position of
the board has been consistent in main
tanning that no need for such legisla-
ton has been demonstrated. This
same position has been held by the
bankers, the building associations, title
companies, builders, Washington Board
Of Trade and other civic groups.
The failure and wrongdoing OF a
few in connection with the real estate
financing caused a tremendous amount
Of public discussion OF the real estate
situation in Washington. with the re-
suit that the public mind has been
somewhat confused In respect to the
basic need for real estate legislation.
Foreclosure Of mortgages has had
no connection with any of the difn-
culties experienced, and the foreclosure
legislation proposed at the last session
of Congress could not be expected to
reach the evils complained of. Wash
ington is a small. compact. metropoli-
tan city, with no rural or farm sections,
such as are found in almost every
State, and with local conditions that
differ radically from those existing in
most States. Washington does not
require. therefore, the same type of
legislation covering the foreclosure Of
mortgages that exists in many States.
Amendments Suggested.
I'VE have informally suggested to
Congress several amendments to the
District Code which would make as a
requirement of law the same general
practice in connection with foreclosure
procedure which has always been used
by reputable agencies contracting with
the mortgage business in Washington.
However, we are having prepared a
thorough study of foreclosure laws in
all States in order to determine II any
procedure in other States could be
applied to the District of Columbia
with any beneficial results to the city
Legislation to correct evils in
has been Endorsed by this board for a
Humber of years. The type of legis-
lation suggested to Congress carries
also the united Endorsement Of prac-
tically all business and professional
organizations interested in protecting
the integrity Of the investment bust
ness.
This board has felt that the So
called blue-sky type of legislation
which undertakes to restrict mortgages
to a basis Of assessed value would
xrrnp hardchiyH tho horne
owners of Washington in connection
with the financing of their homes. BY
using fair market value as a basis
ample protection could be furnished
investors without thus hurting limo
cent property owners. This basis is
used in the blue-sky laws of other
States where mortgages are included,
and no law in any State has yet been
found which attempts to use the as
sessed value as basis
I'VE feel that no type of legislation
should be enacted for the protection of
q special class at the risk of hurting
another class. Home owners should
not be made to indure unjust hard
ships in order to protect investors in
securities.
Toward the close of Congress there
were added to the pending foreclosure
bill some additional sections dealing
with the releasing of mortgages. This
no doubt was prompted by an i'm
portant and spectacular failure in the
mortgage loan field, the results of
able man in the real estate business,
and the prevention of which in the
future is also equally desired by them.
These added sections represent an
attempt to correct specific evil by
general legislation. These proposals
should be given most careful study to
determine whether they or legislation
Of different character will most ade-
duately meet the situation and at the
same time avoid any needless compli-
cation or difficulty in the practical
compliance herewith"