Evening star., 1933-07-31
$50 Applicants Are in Line as
Mgr. 0nes and Staff
Start Job.
HEAVY WORK is SEEN
AFTER INITIAL RUSH
Distressed Householders Only Are
Entitled to Governments Re-
financing Program.

The machinery Of the local Office Of
the Home Owners Loan Corporation
was set smoothly in motion today, as
District Manager Charles A. Jones and
his staff of volunteer, experienced as
sistants prepared to pave the way for
Federal relief for distressed home
owners.
With $50 loan applicants waiting in
line outside, the doors Of the District
of1ice at 810 Fifteenth street, were
swung open to the public for the first
time at 8 O'Clock this morning, and
within the first hour, approximately
300 persons had been taken care of by
rs interviewers.
After the initial rush. Jones and his
assistant manager. Paul Frizzell, esti-
mated loan-seekers continued to flow
into the office at the rate of one or two
minute. Twenty-Five chairs were pro-
v1ded for waiting applicants, while the
stan listened to the cases of Is Others
Fears Complicating Work.
A plan to distribute application forms
through the various substations of the
City Post Office was definitely aban-
doned by Jones on recommendation of
| the national headquarters. He said it
was feared faultily filled out applica-
lions would come into his Office if this
procedure were followed, complicating
the functioning of the agency.
AS the Office now operates, each ap-
pncant Is given hearing and the case
outlined While loans to home owners
necessarily restricted by law to those
IN danger OF losing their properties
through foreclosure-may be made on
the basis OF many forms of financial
dlMculty, the most common situations
| fau into three brackets, Jones said.
These are where loan on home Is
| due Tor payment, and the holder of the
mortgage Will not renew; where a loan
| Is maturing and curtailment of the
principal Is necessary as a condition
prior to rednancing. and curtailment
cannot be made by the owner, and in
cases where the loan is not yet due,
but curtailment is
Handling First Days Rush.
| The staff of assistants Jones has as
sembled, largely through the generosity
of banks and trust companies here. have
made possible expeditions handling Of
the first days rush of applications. the
District manager asserted. Had he as
sembled an inexperienced group of men
at the outset, there may have been a
serious tie-up. he said.
+, Jones does not expect to keep his
office operating on a volunteer per-
! sonnel basis for very long. A perma-
! nent paid staff will be named as soon
as he is able to determine the volume
Of business he expects to handle. When
he gets around to making appoint
| ments, he has 3,100 applications from
| job seekers already on hand, and he Is
replying to each of these Immediately.
advising them that no action can be
taken on their requests for the time
being. This is being done to prevent
the applicants from calling at the Of
fee and hampering its normal work.
Made in Gases of Distress.
| Loans are being made to distressed
home owners, facing foreclosure, on
homes which do not exceed $40 900 in
| value and are owner occupied Ad-
vanccs may be made up to 80 per cent
OF the appraised value of the PROP
| erty. but in no case to exceed $4,000.
The holder of the mortgage must
agree to accept bonds of the Home
Owners Loan Corporation. on which
interest is guaranteed by the Govern
ment at per cent, in exchange for
the mortgage If the mortgage fails
to accept the bonds, the corporation
aid must be restricted to such cases
where the incumbrance is not more
than 40 per cent of the appraised value
| Of the property, in which cases 1t may
pay the mortgage in cash.
The Home Owners Loan Corporation
was created by Congress at the last
session with a capital of 5000 0O0, 900
and authority to issue s., 1000, 600, 900 in
bonds to take up mortgages on homes.