The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1933-09-21

ais on the basis prevailing in the
community, arrive at a value of
1880. We add $500 plus $500
plus $500 and have $19,5OO and di-
vide by three and have an apprais-
al Of $1,000. On this property Home
Owners Loan Corporation can adj
vance total of 80 per cent or S., 200
in bonds, etc., under sec. 4 Cd of
the act, or so per cent under sec.
4 (e) or 40 per cent under sec. (f).
This is given solely as an illustra-
ton to the method to be pursued"
To convince you ladies and gen.
tlemen further that we are going
about this thing in a thorough
manner, I want to briefly tell you
the action we have adopted in the
Minnesota Agency for the handling
of applications. Upon receipt at
the state office in St. Paul, they
will be very careruily examined by
a board of examiners who will
determine the eligibility of the APP
plicant from the facts contained
in the application itself. Those ap-
plicants who under the terms of the
act are not eligible will at that
point be so advised.
Where the applicant is eligible an
appraisal of the property will then
be ordered. That being accomp-
lished, a competent chief reviewing
will analyze both the ap-
praisal and the application and sub
NIT his recommendation to our ex-
ecutive committee, upon which 1
shall always sit as Chairman. This
committee assumes full response
bility for either the acceptance of
the loan or it's rejection. If the
committee finds from its review
that repairs are advisable it will be
that committees responsibility to
order such. 1t will keep in mind
when taking such action that re-
pairs will not only make the loan
more secure, but will also be condu-
Give to increasing the borrowers
interest in maintaining and retain
ing his home for his family. Such
executive committee recommends
ton will have to be acceptable to
the borrower and the expense shall
have to be included as part OF
the final total amount of the loan.
After a loan has been approved,
delivery of the abstract will be
called for and when examined and
the title found acceptable, the note
and mortgage will be prepared and
sent with the bond or cash to the
local county unit for final closing.
There will be no delay in exchang-
ing mortgages for bonds and the
bonds will be in our possession at
the state office ready for delivery.
It will be of interest to the Dor
rowers to know that we have re-
ceived an opinion from the office
of Harry III. Peterson. Attorney
General for the State of Mime
sofa, to the effect that the mort
cages given to the Home Owners
Loan Corporation are not subject to
the state mortgage registration tax.
Keeping in mind the whole pur-
pose of this Act want to discuss
a point freely and frankly. There
have already come to my attention
too many instances of a fragrant
misuse of the privileges extended
under the Home Owners Act of
1888. have in my possession at this
time sworn copies Of contracts sign
ed by distressed home owners
wherein they have already paid a
fee for the negotiation of loans
nxxyrarcs nan
Corporation to concerns who have
no other interest in the applicant
than the fee. I have one most flag
rant illustration in which the I'M
fortunate uniformed, distressed
and harrassed home owner has
signed away an additional 2 per-
cent of whatever loan may be ne
gotiated in his behalf. Therefore,
ladies and gentlemen, let me read
Section 8, Paragraph (e), of the
Act entitled, Penalties" so that
there may be no neutrality-suspicious.
of what I have in mind.
mo person, partnership, associa-
ton or corporation shall make any
charge in connection with a loan
by the corporation or an exchange
of bonds or cash advance under
this Act except ordinary charges
authorized and required by the cor
poration for services actually rem
dered for examination and perfect
ing of title, appraisal, and like
necessary services. Any person
partnership, association, or cor
poration violating the provisions OF
this subsection shall, upon convic-
ton thereof, be fined not more than
$1O,O 900 or imprisoned not more than
five years, or both"
I say this to you ladies and gen
tlemen with full intent and pur-
pose, it is going to be my response
bility to see to It that not one in
fringement of this law is allowed
to remain. I say further to you that
if in your knowledge anyone has
transgressed let them quickly right
the wrong before it comes to the
attention of the legal council of
our corporation. I mean exactly
what say.
So far I have spoken of the ap-
plicant and the loan, now let me re
fer to the bonds.
Section 4, Paragraph I'D of the
Act provides: ANY person indebt-
ed to the Corporation may make
payment to it in part or in full by