Smyrna times., 1933-07-19
TO
BE PROTECTED
Bureau To Be Set Up in Del
aware Under Federal
Home Loan Act
PREVENT FORECLOSURE

Wide interest was manifested in
Delaware Friday in announcement
at Washington that a bureau is to
be set up and an administrator
named for Delaware to direct this
States participation in the FEEDER
al Home Loan Act. which is de-
signed to protect the owners Of
mortgaged homes from foreclosure.
Many Wilmington home owners
are known to be anxious to take
advantage of the opportunities Of
refnancing their home under the
Home Loan Act and have beseiged
every possible source of informa-
tion here for enlightenment as to
its provisions and their chance for
receiving some Of its benefits.
The announcement in Washington
Friday was made at the office of
the Federal Home Loan Bank
Board. How the Delaware admin
istrator is to be chosen was not re-
vealed, but it is understood the ap-
pointment will be handled politi-
cally. 1t is understood the bureau
will be established within a fort
night Each State is to have a
manager with salary ranging from
$4,000 in the larger states to $1,000
in the smaller states. A longtime
job at the latter figure is in pros
pect for some Delaware Democrat
The Delaware State organization
will be completed by the State
manager soon to be named. The
set-up will include main Office at
Wilmington with possibly branch
offices in Kent and Sussex counties
though as to this the decision will
be made by the State manager.
subject to confirmation by the
board in Washington. In any event
there will be an attorney and an
appraiser in Wilmington, and one
of each in the counties, all to be
reimbursed on a fee basis. The
State manager will appoint attorn-
eys and appraisers. Applications
for positions under the State or
ganization should be filed with the
State manager, the beard has pub
licly stated. The Home Owners
Loan Law empowers the corpora
tion to deal with home owners who
occupy their homes, or who still
hold them as homesteads although
temporarily not occupying them.
The appraised value Of such homes
must not exceed $4,000. The law
contemplate primarily the refund
ing of mortgages and not their
liquidation in cash. Only those
mortgages which are of record on
the date of the signing Of the law:
not mortgages thereafter made are
eligible The government aid is
designed for those home owners al
ready in distress and facing fore
closure or inability to refinance
their obligations. The act author
ICES taking up mortgages on homes
by the exchanging Of bonds Of the
corporation, interest on which is
guaranteed by the United States,
at per cent for a period of eigh-
teen years. These bonds will COW
er the mortgage due and the act
permits payment in cash of any
accrued taxes, assessments, neces-
sary repairs and maintenance, and
the incidental costs of the trans
action; provided, the total amount
does not exceed S14 1000, or 80 per
cent Of the value Of the property,
whichever is smaller-all of this to
be refunded in a single mortgage
and paid off, principal and interest,
over period Of fifteen years. An
interest rate of 5 per cent is charg-
ed and the owner may have an ex-
tension on the principal for a three
year period. 1t is possible to so
refund not only first mortgage