Evening star., 1934-05-02
IMPROVED HOMES.
SEENBY U.S.LOANS.
John H. Fahey Discusses
Federal Aims in Radio
Forum Address.

eased credit through both private and
public home financing institutions.
Mr.. Fahey spoke in the National
Radio Forum, arranged by The Wash
ington Star and broadcast over a
CoaSt-to-CoaSt network Of the National
Broadcasting Co. He was heard locally
through WRC.
Help Through Three Agencies.
After explaining the functions of
the Home Loan Banks, the Home
Owners Loan Corporation and the
Federal Savings and Loan Associa-
tions, Mr.. Fahey showed how the con-
scientiouS home owner, both those in
distress and those merely needing
small sums for repairs, can be helped
directly and indirectly by the three
agencies.
only three days ago." he said,
president Roosevelt signed a new
act of Congress which is likely to have
vey definite result in creating new
employment in the building trades
and in making Federal and private
home mortgage money available in
larger volume.
"AS it continues to develop in size
and membership, the Federal Home
Loan Bank System will be an increaS-
ingly strong source of protection to
all home mortgage borrowers and
lenders 1t makes home credit more
liquid and more flexible In doing
SO it corrects the past difficulty which
has led to the freezing up of sound
mortgage assets held by financial in
StitutionS
More Capital Available.
"Our board in Washington is, of
course, in close touch with thou
sands of home-fnancing institutions
throughout the country. Within the
past few weeks We have been informed
that private capital in increasing
amounts is being made available in
many parts of the country for sound
loans to responsible home owners.
Private savings invested in such tnsti-
tutions, supplemented by resources of
the Federal Savings and Loan ASso-
Citations and the Federal Home Loan
Bank System are expected to remove
the most serious obstacle to urgently
needed home building and repair
which has faced American home own
ers during the past four years, name
~, the scarcity of mortgage money.
Further Plans Proposed.
In addition to the resources which
I have mentioned, it is expected that
within short time the President will
propose further plans for the COOP
Grafton OF private capital with the
Federal Government to make avail
able large sum of money to home
owners of sound credit reputation,
particularly for repair and moderniza-
ton purposes.
Millions Of people in this country,
OF large and small incomes, are living
IN homes which could be made far
more comfortable and more attractive
with only a small outlay of money.
Let me assure you that the Federal
government is bending every effort to
help American home owners In that
direction
Text of Address.
The text of Mr.. Fahey's address
follows:
1t was my privilege to speak to the
RADIO Forum audience just five
months ago on the subject of the
Home Owners Loan Corporation. I
described its purpose in helping to
save the urban homes of more than
half million American families. who
were in serious LANCER of losing them
through foreclosure.
1 also mentioned the obstacles
which the corporation faced in the
flood of applications for relief that
had come to us from home owners
who were not in distress. They we're,
therefore, not eligible for loans from
the corporation. Their applications
have hampered the very urgent Job of
our State and branch Offices in
handling hundreds of thousands of
applications for loans from home
owners who were desperately in need
OF assistance from the corporation.
Discusses Benefits.
Tonight I wish to cover a broader
field than merely the relief aspect of
home financing. l would like to dis.
cuss what the Federal Government is
doing for the benefit and protection
of all home owners; including the
100000 who are not in financial
difficulty at all Nearly every one
who owns his home has been obliged
to postpone the ordinary repairs on
his property because of hard times,
reduced income and the acute scarcity
OF home mortgage money during the
past few years.
1t is timely subject, because only
three days ago President Roosevelt
signed a new act of Congress which
Is likely to have very definite re-
suits in creating new employment in
the building trades and in making
Federal and private home mortgage
money available in larger volume. It
should also be effective in preventing
the abuses that developed under ear
lier legislation and in stimulating the
healthy revival of private investment
in loans that are based upon the best
of all possible Security-that is, con-
servative first mortgages on American
homes.
Before deal with this new legisla-
ton and what it means. let me first
describe the ways in which the three
different agencies under the super
vision of the Federal Home Loan Bank
Board are attacking this whole ques-
tion of restoring home ownership and
home finance to normal stability.
Relief Agency.
One of these three methods is rep
resented by the Home Owners Loan
Corporation, which is strictly a re-
lief agency. Most of you are familiar
with its work of helping hard-pressed
home owners by exchanging their
present mortgage Indebtedness for new
loans made to them by the corpora
ton. When I spoke on this program
last November. the corporation had
made loans to about 10000 home
owners. in the amount of S43 5000 600
AS result of the progress since then.
the corporation has now made loans
to more than 100000 different home
owners in the amount of over $780,
100000. More than $50 900 900 in
loans was closed last week