Evening star., 1933-09-10
IS D. c, HOME LOAN
CASES IN HANDS
OF TITLE COMPANIES
Manager of Corporation Has
Received 1000 AppIica-
tions in Month.
ADJUSTMENT is SOUGHT
BEFORE hNAL PASSAGE
Statement Declares Capital Mort
gage Holders Have Been More
Than Lenient.

Although the District Home Owners
Loan Corporation has not yet made a
loan to q distressed home owner, Is
cases are now in the hands OF title
companies, the final stage before a
transaction Is closed, according to
Charles A. Jones. manager of the Office
Summarizing the activities of the
ONCE in its first month Of operation,
Jones said 1000 applications have been
filed during that period, but the num-
Der would have been considerably
greater had not holders of mortgages
carried number Of cases on an ad-
lustment basis
Under instructions by the Federal
Home Loan Bank Board, which governs
the corporation. the local office, Jones
said. has established a definite policy
OF passing applications for loans only
made to find solution to the problem
involved, by arranging some adjustment
between the home owner and the
mortgage holder.
Holders More Than Lenient.
In a statement prepared by Jones
and Paul Frizzell. assistant manager
the local Office declares that mortgage
holders in Washington have been more
than lenient in meeting the home prob
lens created by the depression"
Without an exception, 1t is believed,
policy has been followed in using
foreclosures only as a last resort: after
other means to carry the home owners
have been exhausted. The city's build
ing and loan associations deserve par
ticular credit
There Is also a growing willingness
on the part Of the life insurance COM
panies and other large mortgage holders
to accept the bond Of the corporation
in exchange for this existing mortgage
notes, and this attitude is reflected
among many local institutions still
greater response is anticipated when
the Home Owners Loan Corporation
issues it first bond circular early next
week
misunderstanding Exists.
Despite explicit provisions of the act.
Jones declared, much misunderstanding
Of the emergency relief measure still
exists. A number OF persons have ap-
piled for loans on the theory that they
may underwrite their Indebtedness on
homes at a lower rate OF interest and
on a more favorable basis, merely by
applying to the Government. although
they are in no danger Of eviction or
foreclosure
Such cases. Of course. are not con-
sidered. the corporations manager said.
The law is solely for the aid of homr
owners in real distress who have found
it impossible to refinance their properties
through the ordinary channels of credit
Another misconception noted by the
District management IS that certain ap-
plicants apparently believe that the
filing OF an application for a home loan
relieves the applicant Of any necessity
Of meeting present obligations to the
limit Of his ability, Jones said
Still another misconception relates
to cash advances for repairs. applicants
in many cases being under the impress
sion that corporation loans can include
cash for various purposes, such as ad-
ditions to the property. Advances for
repairs can. un6er the act. be made
only when these items tend to serve as
a protection for the security OF the loan