The border vidette., 1933-09-16
LOAN POLICE FOR HOME
OWNERS

Phoenix, Sept. IA state
ment of policy of the Home Own
ers' Loan Corporation was made
this morning by Manager Roy
Wayland for the Arizona branch
of this Q d deral emergency
agency.
In order that the public may
understand" said Wayland,
that the greatest relief may be
brought to the owners of small
homes now 10 distress because
of their mortgage indebtedness,
and that home owners may re
ceive the greatest benefit from
the recovery program of the
Home 0 OUners Loan Corpor atom,
this statement of policy is made:
I'D Home Owners Loan Cor.
poration will treat as eligible for
refunding bone mortgage indebt
edness where the owner is 10 dis.
tress on account of uuemploy
ment or other conditions beyond
his control, and will not deal
with cases where the borrower
is able TO carry out his mortgage
contract or is able to continue
his home mortgage arrangement
on any adj djustment basis which
the lender ls willing to make.
"(2) The Corporation will re-.
fund. as provided in Home Own.
ers' Loan Act of 1888. where
possible aud when necessary to
prevent foreclosure and to the
extent of it's resources. At the
same time, it will assist other
home owners 10 need of funds to
the extent of it's ability to obtain
such funds in ordinary channels.
'(3) The Corporation will
make every effort to conduct it's
business to protect the home
whose mortgages are refunded
and also to protect other home
owners. To this end it will ad
wise home owners able to do so.
to continue all possible mortgage
payments. and encourage mort.
gage lenders to carry their Dor.
rowers ia all cases where they
are able to do 90 on the best
basis that can be worked out,
and encourage mortgage lenders
to continue lending money and
thereby supporting the value Of
| homes"
Wayand Comments On Policy
In commenting on this policy
Manager Wayland said:
THE total resources of the
Corporation in cash and bonds
are only 81, 200. 100000, and this
is only about ten per cent of the
present estimated outstanding
home mortgage Indebtedness of
more than $40. 900. 900. 900. There
fore it is clear that if the Cor
poration takes up the mortgage
debts not in distress, to that ex
tent it will be able to refund in
debtedness where necessary in
order to save the home from fore
clousure. 1t is not only neces
sary but patriotic for home own.
ers who owe debts on their
homes to continue to pay the
sams to the best of their ability,
and for mortgage lenders to con.
tinue to carry such mortgages to
the best of their ability. At
least ninety per cent of the pres
ent outstanding mortgage in.
debtedness must be continued on
its present basis.
1T is the purpose of the Cor
poration to refund 100000 or
100000 small home mortgages
and by this means to save this
number of small bones from
foreclosure and to enable the
home owners to pay their indebt.
edness over tifteen-year period.
This will remove the same num
Der of homes from a distressed
market and will cause the value
of homes to increase as the cost
of building material and labor is
increasing and will make pos.
sible new mortgage lending and
new construction.
Recovery Program Has Good Start
The recovery program is an-
der way. The cost of building
materials and labor is rapidly in
creaslng. Therefore the value
of houses is rapidly increasing.
II foreclosures are stopped, the
market will promptly respond.
tn servn tho dnmanA for mort