Evening star., 1933-06-06
CONFERENCE GETS
HOME RELIEF BILL
House Rejects Amendments
Voted by Senate to Mort
gage Measure.
BY the Associated Press.

| BY the Associated Press.
The House today rejected the Sen
ate's amendments and sent to confer
ence the administrators $4,000, ,000, ,0oo
home-mortgage bill.
Appointed to represent the House in
negotiations to reconcile differences
were Chairman Steagan of the Bank
ing Committee and Representatives
Goldsborough, Democrat, Maryland, and
Luce, Republican, Massachusetts,.
One of the prime differences is that
the House originally voted to limit aid
to owners of homes valued at not more
than $4,000; the bill passed yesterday
by the Senate set $4,000 limit, while
President Roosevelt suggested $4,000.
Another change made by the Senate
was stipulation that an interest rate
of per cent would be charged on
cash advances from the projected Home
Owners Loan Corporation, to be made
only when the home owner could not
obtain loans from ordinary lending
agencies.
The corporation, which would be
capitalized for S200,000,000 and with
power to issue bonds for $4,000, 900 900,
would be authorized for three years
after the bill becomes law to ease home
owners mortgage burdens as follows:
Exchange its tax exempt, per cent
interest guaranteed bonds for the mort
cages;
Make cash advances OF not to exceed
so per cent of the value Of the property
II the home owner could not obtain
loans from other sources;
Provide for a three-year moratorium
to the home owner before he would
have to begin paying.
Any markdown in the face value OF
the obligations would be passed along
to the home owner The home owner
would amortize his debt to the corpora
ton. represented by the mortgage for
which the corporation exchanged its
bonds, over 15-year period at 5 per
cent.
A clause approved by both the House
and Senate Banking Committees re-
pealing the section of the existing hcme
loan bank law that provides for direct
loans to home owners, was eliminated
by the Senate.
This was done at the request Of Sen
ator Bratton, Democrat, of New Mex
leo, who said that building and loan
associations could borrow from the
Government at low interest rates and
lend to home owners at higher rates.
An amendment was added by Sen
ator Dill, Democrat, Of Washington to
provide that the President should ap-
point one home loan agent for each
State, to be confirmed by the Senate.
He said this would tend to retain con-
troll of the emergency work in Wash
ington.
Agents Salary, $4,000.
The salary of State agents. to be
fixed by the Home Loan Corporation,
would be limited to $4,000. Dill said
he thought the move was necessary
since in the administration Of the farm
relief and reforestation programs, the
Government had delegated State OH
cials for field administration.
AS approved by the Senate, the bill
provides for setting up Federal savings
and loans associations, to lend home
owners, with authority for the Treas
ury to subscribe to $100,o00,000 In
stocks, with each associations: share to
be limited to 100000. Soc
These associations would be set up
where there were no such facilities or
existing agencies were inadequate.
An amendment by Senator Tramnell,
Democrat, Of Florida, to provide direct
cash loans to home owners to meet ex-
isting mortgages was rejected without
a record vote.
Another Trammel amendment which
eliminated provision for discretionary
action by the Home Loan Corporation
for three years to make cash advances
up to so per cent ON property was
adopted.