Evening star., 1934-10-13
REPORT HAILED
BY LOAN HEADS
Building and Loan. League
Learns of Improvement
in Collections.

The third quarter Of 1894 witnessed
definite improvement in the col
lection Of both principal and interest
on home loans held by building and
loan associations in many different
parts OF the country.
This report; which came to their ma
tional trade organization, the United
States Building and Loan League, this
past week, gave building and loan
association officials a new optimism
in regard to the success Of the home
modernization campaign. Philip
Lieber Of Shreveport, La, president of
the League, and chairman Of its F. H.
A. Liaison Committee, points out four
reasons for looking upon this cir
cumstance ss particularly helpful in
swinging the home repair program
forward.
/. Under normal expectancy, $780,
000, 900 for reloaning purposes would
be paid into the associations during
a three month period in the form Of
monthly reductions of the principal
on the 1000, 900 mortgage loans which
they hold. An approach to this nor
NAL flow Of funds means a vastly ex-
panded sum to be offered to home
owners for financing modernization
and repairs.
More Owners Eligible.
2. Since modernization loans are
to be made primarily on the basis
Of character risk and good credit
standing, the revival Of their steady
debt-paying habits by home owners
brings more and more of them within
the reach Of the financing institu-
tions' repair loan facilities.
8. The pickup in collections indi-
Gates the return Of that great intangi-
bic, confidence, to the home owning
people. Two years ago, and even a
year ago, there was a widespread atti-
tude of ''let the house go, let the
mortgage take it, can't be bothered
with sacrificing to keep it."
With such an attitude abroad you
couldn't expect people to take an in
terest in repairing and recondition-
ing, Mr.. Lieber points out, but with
the revival Of interest In the home, as
shown by the willingness to pay obli-
cations, there is definite hope for an
enthusiastic response to the modern
ization campaign.
4. The turn toward a normal debt
or-creditor relationship between the
savings institutions and their borrow
ers shows q lessening disposition to
depend upon the Government for
financing facilities. Since all Of the
home modernization funds have to
flow from the privately-cap capitalized
financial institutions to the home
owners, the success Of the plan will
depend upon the willingness of the
public to deal Fundamentally with the
old-time institutions which served
them.
Employment Is Improved.
"Of course there Is evidence in this
pickup in collections that employ
ment conditions, at least in some sec
tions, are improved" said Mr.. Lieber.
I'VE know that great majority of
the borrowing home-owners pay their
debts when they are able to do so.
The entire stability of the home mort
gage structure has been built upon
this dependability of the home own
ing class. With the improvement in
employment, and with the clearer un-
derstanding Of the limitation of gov
ernment financing agencies to the
acute distress cases, we may look for
ward to substantial rebuilding in the
home mortgage structure in the COM
ing months.
Home modernization, according to
word from the Federal housing ad-
ministrator, has already been approved
as lending proposition by more than
5000 financial institutions in the
country. To match that approval the
campaign must give rise to q feeling
among millions Of borrowers that
home modernization as a spending
proposition is satisfactory"