Evening star., 1934-05-02

aN dAAdblC %O1 LlOAilC lOdAIo AL 4Lo N1Il4l1Iy
as is supplied simply by local private
savings.
Another Important Change.
Another important change effected
by this new amendment Is that it
will no longer be possible for borrow
erS from the Home Owners Loan
Corporation to exercise the right to
postpone all payments on principal
up to June, 1896. as has been the case
in the past. All borrowers, except in
proven necessitous cases, will be
obliged to make combined payments
of principal and interest each month.
1t was found that many borrowers
who were well able to make principal
payments had abused the privilege Of
deferring payments when there was
no good reason for doing so. Bear in
mind that the monthly payment re-
quired for both principal and interest
is only S7.el for each 81 900 of loan.
The average loan so far made by the
corporation, among 100000 borrowers,
is slightly more than $4,000, on which
the combined principal and interest
inStallment each month is less
than $23.
You will see, therefore, that the
corporation is not only saving hum
dreds of thousands of homes for their
owners. but it is enabling them to paw
off their mortgages on very easy terms.
The home owners who receive such
generous help should not invite future
trouble by failing to pay off their
debts as rapidly as they can. The cor
poration does not intend to be un-
just to any borrower, but neither does
it propose to allow the Government
to be imposed upon.
The Home Owners Loan Corpora
ton is but one of the many con-
structive agencies which owe their
existence to the craftsmanship and
foresight of our President. His in
terest in the home ownership prob
lem is ong-standing and we'll known.
Despite the many tremendous ques-
tionS the President is called upon to
face from day to day, the housing
problem is never put aside. Whenever
it requires MS personal attention the
time is made available for its con-
Sideration. Under such encourage
ment the corporation is carrying for
ward work Of home protection and
reflnancing such as no country has
ever before done for its people. 1t
is not only entitled to the support
Of all right-minded citizens, but it
certainly merits the prompt payment
of obligations by those who are
benefited.
Aid Is Appreciated.
1t is heartening to those engaged in
this work to observe not only the ap-
probation of the vast majority of
those who have been aided, but their
observance Of the letter of their con-
tract with their Government. We
received hundreds Of thousands of
payments on loans even before the
bills had been sent out.
In conclusion, may I offer a word
Of encouragement for home owners
and prospective home owners who In
the recent past have had difficulty
in obtaining mortgage loans for re-
pairs or new construction. Our board
in Washington is. of course, in close
touch with thousands of home -financ-
ing institutions throughout the coun-
try. Within the past few weeks we
have been informed that private capi-
tai in increasing amounts is being
made available in many parts Of the
country for sound loans to responsible
home owners. Private savings in
vested in such institutions, supple
mented by the resources Of the Fed
arol Couiync ~
and of 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
owners during the past four years
namely, the scarcity of mortgage
In addition to the resources which
I have mentioned, it is expected
that within short time the Presi-
dent will propose further plans for
the cooperation Of private capital
with the Federal Government to make
available a large sum of money to
home owners of sound credit reputa-
ton. particularly for repair and mod
purposes.
Demand Increasing.
The demand by home owners for
loans with which to undertake i'm
provements in their properties is in
creasing steadily. These people rea-
lize that a stitch in time saves nine.
They know that every dollar they
spend today for such repairs will save
them many dollars later on The
longer such upkeep expenditure as
reroofing, repaintirg and other neces-
sary maintenance of that kind is post
poned, the more damage will be done
by wear and tear, and the higher the
cost OF repairs would be.
Mortgage money for these worth
while undertakings is ready to be bor-
rowed. The first step is to get in
touch with some well-managed, pri-
vate home financing institution, such
as building and loan association,
savings bank or insurance company
representative in your territory, and
discuss your repair or building plans
and your mortgage requirements
fully
Better Homes Great Need.
The greatest need. and probably
the greatest opportunity for accelerat-
ing cur progress in the United States
today is to have better homes at rea-
Sonable cost. To some extent, this
means building new homes. To much
wider degree 1t means the moderniza-
ton of good homes that have been
built IN the past. Millions of people in
this country, of large and small in
comes, are living in houses 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 bend
ing every effort to help American
home owners in that direction The
time is coming when more people will
insist upon taking just as much pride
in their homes as they do now in
their motor cars. They will insist upon
good architecture, sound construction
and proper community planning as
the necessary steps toward better and
more permanent value and lower cost.
Every citizen should give his self
interested cooperation to these vital
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