Evening star., 1933-10-07
AMENDMENTS SEEN
TO MORTGAGE RULE
N SECURITIES ACT
Federal Trade Commission
Decision Is Expected in
Several Weeks.
WEIGHING SUGGESTIONS
MADE AT PUBLIC HEARING
Changes Requested by National
Representatives of Realty and
Securities Dealers.
BY VINCENT TUTCHING.

Important amendments to the pres
ent regulations governing mortgages
under the securities act are expected
to be made by the Federal Trade
Commission within the next two
weeks.
The commission is at present study
ing the many recommendations for
simplification of its ruling on exemp-
tion of real estate notes or bonds.
made at a public hearing Tuesday.
The changes were requested by ma
tional representatives of the real estate
and mortgage dealers of the country.
Speakers at Hearing.
Principal speakers were Huston
Thompson. representing the District OF
Columbia companies: Nathan William
MacChesney, general counsel of the
National Association of Real Estate
Boards, Chicago James c. Wilkes.
Operative Builders Association, this
city: G. c. Bowie. also Of Washington.
member of the board of governors OF
and representing the Mortgage BANKERS
Association Of America, and John r
Caskey, representing the superintendent
of insurance of New York State.
The speakers expressed general ap-
proval of the act and sympathies with
the difficulties confronting the Federal
Trade Commission in its admln1stra-
ton. but presented arguments In favor,
of certain changes in the rules tenta-
lively adopted by the commission
relating to exemptions from reglstra-
ton of securities secured by real estate
mortgages.
A substitute rule on exemptions from
registration of this type OF securlues
was submitted by Mr.. Thompson LOT
1xyt
A hearing was asked by the Natlonal
Association of Real Estate Boards IN
order that it might bring before the
commission changes needed to loosen
up the mortgage making and mortgage
sales market.
OBJECTION to Forms.
At the same time the assoclatlon
called to the attention Of the Trace
Cnmmission the serious inapplicabihty
of the ponderous forms, d. and DE-,
if these are to be required to be rleo IN
the reorpanization of real estate prof.
cots Form d. is for registration OF
certificates Of deposit issued in anticl-
nation Of or in connection with plan
IF reorganization or readjustment OF q
comnany Form d. Is It's sequel: d.
is to be used at the time tne DoLuS
are first called by the BondnoloeIs
Committee. d. is to be emp!oyeo iol
REGISTRATION of the new securities Wnen
reorganization or readjustment taxes
place. ,+ critical re-
oreanization process would ensue n
requirements are made Whlcn InpoSe
i,onracticable conditions, the nearing
brought out. Requested changes are
based on practical experience OF mem
hers ~ the association over the country
as compiled by Henry G. zander, chi
caEo. chairman of its COMMITTEE on
Fedora, Legislation. s
The commission, in its release issued
july 27, following a request mace py
the association July 20. exempted TWO
classes of mortgage securities from
necessity Of registration at washington
under the securities act. But In eac!i
class mortgages are exempted only
they meet certain detailed requirements.
The association Tuesday asked tnaI
changes be made in these attached con,
ditions 80 that mortgage recovery VIII
not be entangled in unnecessary reo
tape.
Glasses Exempted.
Glasses now exempted, as laid down
in the commissions release, include
transaction where the entire mortgage
or deed Of trust is transferred with the
entire amount OF notes or bonds TO
single purchaser at single sale, ana 3
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