The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-07-12
FRED ". M'LEAN IS
MADE n. D. MANAGER
OF Home LOAN BANK
Byrne and NystuI Were Other
Candidates; Bismarck
Would Have Office

Fred w. Mclean Of Grand Forks
Tuesday was appointed manager of
the home loan bank for North Da-
kota, according to an Associated
Press dispatch from Washington.
Applicants for the position includ-
ed P. E. Byrne Of Bismarck and John
Nystul of Fargo. Nystul Is chairman
Of the executive committee of the
Nonpartisan League and is under
stood to have had the active backing
OF Congressman William Lemke. It
is not known what the salary will be
for the state manager, but it is UNI
derstood that it will be in the neigh
borhood OF $4,000 per year.
Mclean is chairman of the Demo-
cratic state central committee and
under the administration OF the late
President Woodrow Wilson was reg
lister of the federal land bank in st.
Paul.
Efforts are being made to have
the headquarters for the new home
loan bank established at Bismarck
and H. P. Goddard, secretary of the
Bismarck Association of Commerce,
has wired officials at Washington
asking that the office be opened
here. It is pointed out that mas
much as Henry Holt of Grand Forks
has been endorsed as administrator
OF public works for the state and
probably will secure the appointment,
that office will be established at
Grand Forks and as McLean's home
also Is IN Grand Forks it would give
the eastern part OF the state a
monopoly of federal offices in North
Dakota.
Will Be Busy Department
The new home loan bank probably
will develop into one of the busiest
departments Of the federal govern
ment IN the state as loans will be
approved and made on homes cost
ing not to exceed $4,000 under the
new law. Only mortgages which are
OF record prior to June IL, 1888, the
date OF the approval of the act, can
be taken up under the new law.
Several employees will be required
to handle the business and when the
Office Is established and open for
business. applications for loans will
be made by mail or by personal calls
on the state manager for the neces-
sary blanks. The application then
will be referred to an appraiser or
agent IN the county where the ap-
plicant lives.
After all attorney passes on the
title the loan will be closed and
either bonds or cash will be paid to
take over the mortgage which is in
existence.
The home owners loan corpora
ton. which is the corporation Great
ed by congress to administer the pro-
visions OF the act, will loan in bonds
up to 80 per cent of the value of the
property in taking up a mortgage.
Will Loan for Taxes
1t also will furnish the money to
pay taxes that may be in arrears,
which will be part Of the 80 per
cent loaned. Bonds will carry an
interest rate OF four and one-half
per cent. The home owner will be
given IS years to pay off the mort
gage taken by the government. The
Interest charged by the corporation
Will be five per cent.
If the mortgagor refuses to take
the bonds In payment of his loan
the government will loan up to 40
per cent Of the valuation of the prop
erty IN cash and will give the owner
the same terms as II bonds were ac-
cepted, excepting that the rate of
interest will be six per cent.
THE only federal position I am
seeking" Mclean said at Grand
Forks. lis the presidency of the fed
eral farm loan bank In st. Paul" He
indicated he will accept the state
home loan managership as a tenn
porary appointment.