Evening star., 1934-10-13
CREDIT PLANNED
ON SMALL HOMES
Building and Loan League
Convention to Consider
Type for 1895.

The type Of credit the small home
owner may expect in 1885 will be
determined largely by the delibera-
tions of the annual convention of the
United States Building and Loan
League in New Orleans october "a,
IS and 26, when special attention will
be given to home mortgage lending
policies.
Oficials of building and loan asso-
Citations and of their reserve inSti-
tutions, the IL Federal Home Loan
banks, will APPROACH the home mort
gage subject in the light of activities
of the Federal Housing Administra-
ton, Federal Home Loan Bank Board
operations and anticipated changes in
real estate price levels.
Economic Policies Report.
Philip Lieber of Shreveport, presi-
dent of the league, whose membership
now includes more than $500 associa-
tions, in a preliminary announcement
regarding the three-day program calls
attention to the report of the leagues
Committee on Economic Policies, to
be presented on the final day Of the
national meeting. The committee
report to lending policies and this
year is expected to dwell upon this
phase even more.
The direct-reduction type of loan, a
comparatively new variation OF the
older building and loan plan Of sink
ing-fund repayment by the borrower,
will be one of the two major subjects
of discussion before the managing
officers division of the convention
Legal problems involved in the trans
fer of an existing loan to the newer
type will be brought up in the meeting
Of the attorneys division.
The league also has Committee on
Standards of Practice which has been
doing some research on the loan stu
alton, noting the pubic's likes and
dislikes in lending plans, and this
committee will make report OF its
findings at the convention.
What the Government has to say
on such matters will be presented by
leading officials in the Housing Ad-
ministration and members Of the Fed
eral Home Loan Bank Board. The
Appraisal Division will take up trend
of real estate values 1856"
Invited to Speak.
Representatives of the mutual saw
ings banks and the life insurance COM
panies. which together with the build
ing and loan associations, hold about
$4,000 ,000,0 of the $21 900, 100000
in home mortgages in the United
States have been asked to address the
meeting.
Practically every angle Of home
lending will receive consideration and
distinct efforts will be made to give
the good risk ome-owning family
the most carefully thought out ano
; time-tested improvements in credit
offerings" said Mr.. Lieber. "The de-
preston years have shown so con-
clusively that the monthly amortized
long-term home loan is the only
practical method, that we do not have
to dwell upon such fundamental prop
ositions as this in our convention dis
cussions. What we will be most con-
cerned with are the details Of long
term, amortized mortgage lending, the
percentage of loan which can be made
the rates at which credit can be Of
fered, the economics of lending al
the beginning of the upturn in the
business cycle as compared to lending
at the top of the boom period. Many
Of the outstanding thrift and home
financing institutions have been work
ing this Summer on special plans fol
their own use, covering one or more
of these important details, and there
will be plentiful discussion Of these
plans In the convention sessions"