Evening star., 1934-08-23
FLANDERS TO TALK
AT HOMES SESSION
Replaces Canaday, Called
Out of Town, at Star
Meeting Tonight.
BY G.. T. KELLOGG.

AAAOneAA y SAAAh Al DNAoAAAtoo az WIG
Federal Housing Administration today,
which will take Ward Canaday, pub
lie relations director, out of the city,
w. D. Flanders, director of field or
ganization of the F. H. A, will ad-
dress the meeting of civic leaders
which The Stars 81 900 Better Homes
Contest is sponsoring tonight in the
Board If Trade rooms in The Star
Building.
Mr.. Canaday had agreed to speak
before the meeting, attended by Cit
liens Association presidents and their
Better Homes Committee chairmen
from the city and suburbs, but was
called out of the city.
The Star feels itself fortunate In
securing at so late date the presence
of Mr.. Flanders to explain its work
| ings to the civic leaders.
Addison to Speak.
Before coming to the F. H. A.. Mr..
, Flanders was vice president of the
Credit Alliance and director of sales
for the Commercial Credit Corpora
ton, and he formerly was vice presi-
dent and director of the Congoleum
Co. He is a native of New Jersey.
Besides Mr.. Flanders, Francis G.
Addison, Washington banker and
liaison officer between the District
Bankers Association and the Hous-
ing Corporation, will speak. He will
tell what the Districts bankers are
doing to aid in carrying out the home
| improvement program in Washington
and nearby, and will explain the
mechanics whereby the home owner
can obtain a loan to improve his
property.
This move on the part of the
bankers, who have pledged the
F. H. A. their support, is expected to
, result in an increasing interest in
The Stars competition, since the
F. H. A. program makes available
money for home improvement which
otherwise would have been difficult
to obtain.
To Name Chairman.
| A general chairman to head an or
ganization of Washington civic bodies
and committees will be named to
stimulate the campaign here, it was
said The function of the general
committee will be to organize a cam
paign of property modernization i'm
provement through advertising pub
ncity, rallies and banquets. =
1t is understood that Housing Di-
rector James A. Moffett has had sew
eral conferences with r. v. Fleming,
president of Riggs National Bank and
second vice president of the American
Bankers Association, and other Wash
ington bankers, with view to naming
the head of the Washington commit
! tee, but no announcement has been
made.
The American Bankers Association
and manufacturers groups have ap-
pointed liaison officers in every State
and region to cooperate with the ad-
ministration in its better housing pro-
gram. 1t is in one of these capacities
that Mr.. Addison is working.
These volunteers will cooperate
with State and regional directors of
the program, already named by the
National Emergency Council. and will
assist in supplying to all private
financial and business agencies COM
plete information regarding the pro-
gram.
Rates Explained.
In response to various complaints Of
confusion over interest rates and fee
charges for home improvement loans,
the F. H. A. has issued a statement
explaining paragraph of its regula-
tions.
According to the administration,
reference has been made to the
maximum charge permitted on mod
ernization loans as interest" whereas
| it comprehends not interest alone,
but also the expenses Of investiga-
ton, extra bookkeeping, collecting the
| installments, etc.-in short, all
financing charges which may be made
in connection with a time-payment
transaction. The charge, limited to
approximately 9.8 per cent Of the
loan, also makes allowance for the
fact the borrower is not required to
maintain a deposit account, as is in
variably necessary in applying Tor
ordinary bank credit.
Any type of installment credit
necessarily costs more than straight
commercial loan, because Of the extra
expenses involved, but the particular
type made available through the
credit insurance provided free OF
charge by the Federal Housing Ad-
ministration is by far the lowest In
cost ever offered for such purposes
10 borrowers in the United States.
Maximum Charge Set.
As provided in the regulations, the
maximum amount of charges that
| a financial institution is permitted
| to make for an insured moderniza-
ton loan Is based on IS discount for
each $100, on a one-year note, 10
be paid in equal monthly install
ments. Because these installments
are being made regularly, the ratio
| of gross charge to average outstand-
| ing balance is .0972 per annum, or
about 8 cents per month for each
| $40 borrowed.
This, it is emphasized, Is the
maximum permitted by the Federal
Housing Administration, no matter
what is the size of the note, the
number of months it has to run, the
number of installments provided for
or how the charges are collected. II
the term is three years, for instance,
the maximum cannot be calculated
simply by multiplying S by 8 and
discounting the face of the note by
SIS Gin the case Of 500 note). for
this would make the annual charge
somewhat above the limit fixed. The
tables for determining the discount
amounts have been issued to finan-
cial institutions by the Federal Hous-
ing Administration and definitely
limit the ratio on any transaction